Bunge has said that it expects first-quarter results to be weaker than the same period last year and below analysts’ forecasts, primarily as a result of lower than expected agribusiness results.
Net income for the quarter is expected to be near breakeven, the company said.
However, the food, commodities and agribusiness group has reaffirmed its net income guidance for the full year ending 31 December, 2007 of US$590m to $610m, or $4.56 to $4.71 per share, which includes an estimated $30m, or $0.23 per share, related to a gain on sale of assets.
“During the first quarter the value of the physical cash commodity markets did not mirror the increase in value in the futures markets, which we use to hedge our commodity inventories and forward purchases,” said chairman and CEO Alberto Weisser. “This resulted in unrealised mark- to-market losses.”
Weisser continued: “Earnings can shift among quarters in our industry, so we view our business on an annual basis. Market fundamentals are solid, and we expect to achieve our forecasted full year results.”
The company is scheduled to announce its first-quarter results on 26 April.
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