Bunge Q3 Profit Falls, Projects Strong Q4

(RTTNews) - Bunge Ltd. (BG) Wednesday announced a decline in third quarter net income to $118 million from $239 million in the prior year. On a per share basis, earnings plunged to $0.79 from $1.42 a year ago.

On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.81 per share. Analysts estimates usually exclude special items.

Income from continuing operations declined to $113 million from $239 million in the prior year. In the previous year, the company had recorded a onetime gain of $47 million.

Net sales for the quarter increased to $11.423 billion from $10.76 billion a year ago. Wall Street expects $10.31 billion.

The company noted that Agribusiness impacted by low farmer selling in South America, reducing grain origination and soy crushing results.

The company said it looks ahead to strong fourth quarter and expects earnings growth in 2017.

In Food & Ingredients, the company expect EBIT for 2016 of $230 to $240 million on higher margins and volumes.

In Sugar & Bioenergy, EBIT for 2016 is projected to be $60 to $70 million, while in Fertilizer, EBIT projection is approximately $30 million, slightly down from earlier expectation due to lower margins.

Soren Schroder, CEO said, "Northern Hemisphere oilseed processing and export elevation margins are up with the arrival of harvests and should remain healthy into next year. Brazil and Argentina should produce record harvests, and with a relatively small volume of crops sold in advance, we expect active commercialization during the first half of next year. In addition, global demand and trade should remain robust. We expect Food & Ingredients will build upon its successes in lowering costs, increasing operational efficiencies and expanding market share. Sugar & Bioenergy should continue to benefit from a lower cost structure and higher sugar prices."