Bunge 3rd-quarter net profit edges down

Bunge net income falls in 3rd quarter, hurt by weak fertilizer sales; company cuts outlook

• On 10:35 am EDT, Thursday October 22, 2009

WHITE PLAINS, N.Y. (AP) -- Seed and agribusiness company Bunge Ltd. said Thursday third-quarter net profit edged down 1 percent, but revenue declined on weak fertilizer sales.

The company cut its full-year guidance and shares fell $2.89, or 4.3 percent, to $64.03 during morning trading. The stock has traded between $27.60 and $72.98 during the past 52 weeks.

Profit fell 1 percent to $232 million from $234 million. After preferred dividends, profit rose to $232 million, or $1.62 per share, from $215 million, or $1.70 per share a year ago. Shares outstanding rose 4 percent, which is why per-share profit fell while net income after preferred dividends rose.

Revenue fell 24 percent to $11.3 billion from $14.8 billion a year ago.

Analysts predicted profit of $1.47 per share on revenue of $12 billion.

Bunge said there was a continued mismatch in current market prices and inventory costs for fertilizer, which hurt margins. Still, volume rose as Brazilian farmers bought more fertilizer in the second half of the year, closer to when they plant their crops.

The company cut its outlook due to continued weak fertilizer pricing internationally and in Brazil.

Bunge stock fell $4.76, or 7.1 percent, to $62.14 in morning trading. The stock has ranged from $27.60 to $72.97 over the past year.

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