Bunge Doubles its Profits, Results Impacted by US Drought
There were strong Agribusiness results, with volumes up 15%. Sugar & Bioenergy results were impacted by $39 million impairment charge related to a U.S. corn ethanol joint-venture.
26 Oct 2012 --- Bunge Limited has reported total segment EBIT of $441 million in Q3, an increase of $250 million compared to Q3 2011. There were strong Agribusiness results, with volumes up 15%. Sugar & Bioenergy results were impacted by $39 million impairment charge related to a U.S. corn ethanol joint-venture.
Alberto Weisser, Bunge’s Chairman and Chief Executive Officer, stated, “Bunge delivered significantly stronger third-quarter results than in the prior year. Agribusiness operations posted solid results, and Food & Ingredients and Fertilizer showed improved performance from the challenging first half of the year. Results in Sugar & Bioenergy on a comparable basis were higher than last year, but below the potential of this business. Our continued sugarcane planting and other cost reduction efforts which will result in increased sales volumes and lower unit costs will help us realize this potential. We are making steady progress, and remain optimistic for a strong performance in the 2013 crop year.”
“The current market environment, shaped most notably by the severe U.S. drought, has been and will continue to be volatile and complex for everyone who participates in our industry. Stocks of corn and soybeans are tight, and the world is adjusting typical trade flows. Bunge's role is to help farmers and customers manage through this environment, by providing market access for crops and delivering the right products when and where they are needed. We are confident that the company's core strengths – geographic balance, a diverse product portfolio, an experienced team and a strong balance sheet – enable us to fulfill this role effectively and profitably.”
"The world needs record crops to rebuild stocks, and today’s high prices are sending a strong signal to farmers, especially in South America, to plant. Early indications are that soybean production will be at record levels. As new crops are harvested, we should see a more balanced supply-demand situation, which will be good for consumers and for the market overall.”
In Edible Oil Products, higher results in the company’s European and Brazilian businesses more than offset lower results from North American operations. Results in the quarter benefited from new acquisitions. Results in 2011 included a $6 million gain on the sale of an idled facility in North America.
