US trader Bunge has reported lower half-year profits as it deals with the impact of last year’s weather on harvests.
Bunge booked net income of US$316m for the first half of 2013, down from $366m a year ago. EBIT was down from $604m to $562m.
Earnings improved from three of Bunge’s four divisions but it was its largest – agribusiness – that hit results. EBIT from Bunge’s agribusiness dropped from $498m in the first half of 2012 to $345m.
The lower profits came despite higher sales, which were up 10.5% at $30.3bn.
Alongside the results, Bunge said it was cutting its capex for 2013 by $200m and was “reviewing” its plans for 2014.
Reflecting on the first half of the year, CEO Soren Schroder said Bunge faced “challenges” in North America, Europe and Argentina after weather hit last year’s “poor oilseed and grain crops”.
However, he added: “The first half of the year came in generally as we expected, and we are anticipating a strong second half.”
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