Bunge Limited Earnings Cheat Sheet: Streak of Two Straight Profit Rises Snapped

Wall St. Cheat Sheet

Rising costs hurt Bunge Limited in the second quarter as profit dropped from a year earlier. Bunge, Ltd. is a global agribusiness and food company, operating in the farm-to-consumer food chain. It conducts its operations in three divisions: agribusiness, fertilizer and food and ingredients.

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Bunge Earnings Cheat Sheet for the Second Quarter

Results: Net income for Bunge Limited fell to $316 million ($2.02 per share) vs. $1.78 billion ($11.15 per share) a year earlier. This is a decline of 82.2% from the year earlier quarter.

Revenue: Sales rose 32% to $14.49 billion.

Actual vs. Wall St. Expectations: The company beat the mean estimate of $1.47 per share.

Quoting Management: Alberto Weisser, Bunge’s Chairman and Chief Executive Officer stated, “We posted good second quarter results. Agribusiness and food& ingredients did well in the quarter, and we anticipate a solid performance in these segments in the second half of the year. We also anticipate increased contributions from sugar& bioenergy and fertilizer, as these two businesses enter their high-volume seasons. “The agribusiness and food markets are characterized by steady overall growth, as well as natural volatility due to weather and other factors. Two-thousand-eleven has not been an exception. Global trade in grains and oilseeds is robust, and with the Black Sea region recently reopened for exports, we expect to see additional shifts in trade flows as the world adjusts to a new supply and demand relationship among regions. “With our global asset network and excellent risk management capabilities, we are well positioned to capture this growth and respond to these changes. The recent addition of our first deep water port terminal on the Black Sea, which scaled up operations in Ukraine during the second quarter, makes our network even stronger.”

Competitors to Watch:  Archer Daniels Midland Co. , Corn Products Intl., Inc. , MGP Ingredients, Inc. , CHS Inc. , Westway Group, Inc. , SunOpta, Inc. , Darling International Inc. , AgFeed Industries, Inc. , and The Mosaic Company .

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(Source: Xignite Financials)

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