July 29, 2011
Bunge reports revenue increase of 32%
Bunge Limited has reported an increase in revenue to US$14.48 billion, or 32% above a year ago, with earnings increasing 53% and revenue up 30% in the agribusiness division.
In its second-quarter 2011 earnings report on July 28, Bunge also reported a drop in earnings to US$316 million, or US$2.02 per share, from US$1.78 billion or US$11.15 per share reported a year ago. Last year''s results included a US$2.44 billion gain on the sale of its fertilizer business in Brazil.
Excluding the gain and other items, earnings were US$1.78 per share this year, compared to a prior-year loss of US$0.57.
Alberto Weisser, Bunge''s chairman and chief executive officer, said, "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 & bio-energy and fertilizer, as these two businesses enter their high-volume seasons."
He added that the agribusiness and food markets were characterized by steady overall growth, as well as natural volatility due to weather and other factors.
"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," he said. "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."
Volume, while slightly higher in the quarter, continued to be impacted by lower merchandising and processing volumes in Europe due to the smaller crop production in the Black Sea region last year. Results in the quarter included a US$37 million gain related to the sale of Bunge''s interest in a European oilseed processing facility joint venture.
Milling products saw higher results in the quarter due to stronger margins in wheat and corn milling. Second quarter 2010 results included US$8 million of charges in wheat milling.