By Dow Jones Business News, October 24, 2013, 07:35:00 AM EDT
Bunge Swings to 3Q Loss
Bunge Ltd. ( BG ) swung to a third-quarter loss as the company recorded a drop in revenue and disappointing sugarcane
"Our Brazilian milling operations, however, continued to face suboptimal weather and low global sugar prices, as well
as the structural headwinds of domestic cost inflation and capped ethanol prices," said Chief Executive Soren Schroder,
adding that as such, the company has reduced its outlook for that segment for the fourth quarter and full year.
One of the largest grain handlers in the world, White Plains, N.Y.-based Bunge buys, sells, stores and transports
oilseeds and grains to customers world-wide. It processes seeds for protein meal for animal feed and oil products for
For the latest period, Bunge reported a loss of $120 million, or 94 cents a share, compared with a profit of $297
million, or $1.92, a year earlier. The latest period included after-tax charges of $415 million that reduced net income
from continuing operations by $546 million and increased net income from discontinued operations by $132 million.
Excluding certain gains and charges and discontinued operations, the company recorded adjusted per-share earnings from
continuing operations of $2.05 compared with $2.07 a share a year ago.
Sales fell 11% to $14.7 billion.
Analysts polled by Thomson Reuters expected earnings of $2.21 a share on revenue of $16.9 billion.
Gross margin narrowed to 4.7% from 5.1%.
Sales at the agribusiness segment, by far the company's largest business by revenue, fell 11%. Sales from the sugar
and bioenergy business posted a 26% decline. Edible oil products sales fell 7.1%.
Looking ahead, Chief Financial Officer Drew Burke said the agribusiness segment should have a "strong" fourth quarter,
while the food and ingredient's momentum is expected to continue in the current quarter as well. However, sugarcane
milling will continue to be challenged, he said.
Shares closed at $80.98 Wednesday and were inactive premarket. Through Wednesday's close, the stock has risen 11%
since the start of the year.
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