Bunge earnings surge on higher prices
-
- April
- 24
Rising commodity and fertilizer prices helped drive earnings at Bunge Ltd., the agricultural and food company based in White Plains, up to $289 million, or $2.10 a share, during the first quarter, compared with $14 million, or 5 cents a share, a year earlier, the company reported this morning.
Sales rose 70 percent to $12.47 billion from $7.34 billion.
The company, which processes oilseeds and sells fertilizer, margarine and other products, reported large sales increases in all four of its business segments.
Agribusiness sales rose 65 percent to $8.86 billion. Demand for the products remained strong despite higher prices, the company said.
Fertilizer sales nearly doubled to $1.19 billion. Sales of edible oil products, such as margarines, shortenings and mayonnaise, rose 72 percent to $1.93 billion.
Sales in the company’s smallest business segment, milling products, rose 89 percent to $486 million.
The performance prompted the company to raise its 2008 profit forecast to $7.10 to $7.40 a share, up from a previous estimate of $6.01 to $6.30.
Alberto Weisser, the company’s chairman and chief executive, said the high prices reflect strong demand for certain products. For instance, the government estimates that world demand for soybean meal will rise 6 percent this year, he said.
But he added: “A volatile, high-price environment presents some challenges, however. It creates demands on working capital and leads to inflationary pressures that can influence national policy decisions.â€
This entry was posted
on Thursday, April 24th, 2008 at 9:32 am by Allan Drury.
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