US agribusiness Bunge has booked a drop in first-quarter profits as weak prices for fertiliser and its sugar-based ethanol hit earnings.
In the three months to the end of March, Bunge reported net income of $92m, a 60% drop on the prior-year period.
Go deeper with GlobalData
Bunge said high corn costs hit profits at its ethanol plants and the company also incurred a $27m cost to deal with a sulphuric acid spill in South America. EBIT in the period slid 56.5%.
Net sales amounted to $13.45bn, a 10.3% increase on the prior-year.
Alberto Weisser, Bunge’s chairman and CEO said: “We faced headwinds in the first quarter, as expected, but are confident that we will deliver strong results in 2012.”
See Also:
Looking ahead, CFO Drew Burke added: “We are expecting a strong 2012 in agribusiness. It is currently the high season for oilseed processing in South America, and good global demand for protein meal and vegetable oil, as well as a pick-up in farmer selling following the recent increases in prices, should benefit oilseed processing margins in the region.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataClick here to view the full earnings release.
