Bunge Revenue Tops Estimates After Record Soybean Crop

Bunge Ltd. (BG), one of the biggest grain traders, reported second-quarter revenue that beat analysts’ estimates after a record southern-hemisphere soybean crop boosted its oilseed-processing business. The shares jumped the most in four years.

Revenue rose 8.4 percent to $16.8 billion, the White Plains, New York-based company said today in a statement, exceeding the $15.2 billion average of nine estimates compiled by Bloomberg.

Sales in agribusiness, Bunge’s largest segment by volume, climbed to $12.9 billion, the highest in history, as record crop production in the Southern Hemisphere signaled higher margins for Bunge with more bushels to process and export. Earnings in the segment soared 83 percent to $311 million from a year earlier. World soybean inventories will be a record 85.31 million tons, higher than traders had expected.

“Strong soy crush margins in Brazil, Argentina and southern Europe and very high rates of utilization led to excellent results,” Chief Executive Officer Soren Schroder said on a conference call. “We expect our operations in North America and the Black Sea to benefit from increased exports of grains, oilseeds and oilseeds products driven by record crops and strong demand pool.”

Net income climbed to $272 million, or $1.81 a share, from $110 million, or 75 cents a year earlier. Earnings from continuing operations were $1.76 a share, topping the $1.37 average estimate.

Bunge’s review of its sugarcane-milling business announced in October is still under way, Schroder said. The company is exploring “various alternatives” for the segment. Bunge’s sugar unit hasn’t generated annual operating income since at least 2010.

The shares rose 7.1 percent to $78.84 in New York.

To contact the reporter on this story: Elena Popina in New York at epopina@bloomberg.net

To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net Steven Frank

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