US agribusiness giant Bunge reported a decline in second-quarter net income as it cycled a prior-year gain from the sale of its farm-product fertilisers business.
The company said yesterday (28 July) that net income fell to US$316m for the quarter ended 30 June from US$1.8bn a year earlier. Last year’s results were boosted by the sale of fertiliser assets in Brazil.
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EBIT reached $373m against $2.3bn in the previous year. Bunge’s agribusiness led the results, with EBIT in the division reaching US$319m against $28 in the same quarter in the previous year.
For the quarter, the company’s net sales rose 32% to US$14.5bn, despite volumes declining 2.8% over the quarter.
Net income for the half fell to $548m from $1.8bn in the same half of the previous year. Sales rose 25% to reach $26.6bn.
The company’s chairman and CEO Alberto Weisser said Bunge posted “good” second-quarter results.
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By GlobalData“Agribusiness and food & ingredients did well in the quarter, and we anticipate a solid performance in these segments in the second half of the year. We also anticipate increased contributions from sugar & bioenergy and fertilizer, as these two businesses enter their high-volume seasons,” he said.
Weisser said the agribusiness and food markets are characterised by steady growth as well as “natural volatility due to weather and other factors”
“2011 has not been an exception. Global trade in grains and oilseeds is robust, and with the Black Sea region recently reopened for exports, we expect to see additional shifts in trade flows as the world adjusts to a new supply and demand relationship among regions,” he added.
