09 February 2012 12:34 [Source: ICIS news]
LONDON (ICIS)--Bunge’s fourth-quarter net income fell by 16% year on year to $245m (€183.8m) partly because of reduced sugarcane production yields in Brazil, the US agribusiness and food production company said on Thursday.
Fourth-quarter net sales rose to $16.45bn from $12.73bn in the same period in 2010, while gross profit in the fourth quarter fell 11% year on year to $736m.
“In 2011, Bunge produced strong results in many parts of our business, but faced significant headwinds in others,” said Alberto Weisser, Bunge’s chairman and CEO.
Weisser said that in 2011, on a combined basis, Bunge’s agribusiness, edible oils and milling segments generated record full-year earnings before interest and tax of over $1.1bn.
“However, reduced sugarcane production yields in Brazil, due to back-to-back years of poor weather, had a material impact on volumes in our sugar and bioenergy segment,” he added.
For the full year ended 31 December 2011, Bunge’s net income tumbled to $908m from $2.29bn in 2010, while net sales rose 29% year on year to $58.74bn.
Looking ahead, Weisser sees some challenges early in 2012, but still expects the company to generate good results for the full year: “We see positive signs in the industry and have confidence in our business ... Production and trade of agricultural commodities are expected to increase.”
“We expect a significant improvement in results that will be second-half weighted, driven by higher volume and additional cost reductions,” said Drew Burke, chief financial officer.
“Additionally, we expect the following for 2012: depreciation, depletion and amortisation of approximately $575m; capital expenditures of approximately $1.2bn – approximately 25% of which will be invested in maintenance, safety and environmental projects – and a full-year tax rate of 8–10%.”
($1 = €0.75)
Read Paul Hodges’ Chemicals and the Economy blog
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections