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UPDATE 1-Bunge quarterly profit misses forecasts on lower agribusiness results

Published 2015-07-30, 07:48 a/m
UPDATE 1-Bunge quarterly profit misses forecasts on lower agribusiness results

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July 30 (Reuters) - Bunge Ltd BG.N , one of the world's
largest agricultural commodities traders, reported a lower
quarterly profit on weak year-on-year returns in its
agribusiness segment and poor food and ingredients margins.
The White Plains, New York-based company said weak Canadian
canola processing margins and lower European softseed margins
were largely to blame for the 57-percent earnings drop in
agribusiness, its largest segment in terms of revenue.
Bunge's food and ingredients segment, which saw profit drop
68 percent from the second quarter a year ago, suffered as
margins and volumes were strained by rising unemployment,
inflation and currency devaluation in Brazil.
"Conditions in the second quarter were more challenging than
expected," Chief Executive Soren Schroder said.
But the company forecast a stronger second half of the year
on a favorable soybean crushing outlook and as expected large
crops in the United States and the Black Sea region should
provide Bunge ample supplies for trading and processing.
The better second half should lift full-year earnings,
before interest and tax, in agribusiness above $1 billion, from
$464 million as of June 30, Schroder said.
Food and ingredients was also expected to rebound from the
first half of the year, although second-half results could lag
the prior-year period, he said.
Bunge's net second-quarter profit came to $72 million, or 50
cents share, compared with $272 million, or $1.81 a share, a
year earlier.
The profit fell far short of analysts' average estimate of
$1.36 per share, according to Thomson Reuters I/B/E/S.
Revenue fell 36 percent to $10.78 billion, below the
consensus estimate for $14.94 billion.

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