Bunge Profits Soar

NEW YORK - Jul 24/08 - SNS -- Bunge Limited reported net income of U.S. $751 million on net sales of $14,365 million during the second quarter ending June 30, compared to a net of $168 million on sales of $8,298 million during the same three month period last year.

This lifted net earnings for the first half of the current fiscal year to $1,040 million on sales of $26,834 million, compared to a net of $182 million on sales of $15,641 million last year. Tonnage handled experienced a much smaller increase, rising from 35.441 million to 36.318 million MT during the second quarter. Tonnage handled so far during the fiscal year rose from 65.153 to 67.281 million MT.

Alberto Weisser, Bunge's Chairman and Chief Executive Officer stated, "The second quarter was characterized by good demand and strong margins. . . . Over the past several years, crop production has not kept pace with overall demand, which is driven primarily by the steady trends of global population growth and rising living standards in developing economies. Current agricultural commodity prices reflect this fact, as well as the higher cost of energy.

"The world needs a greater supply of grains and oilseeds, and in the near term crop prices should remain at levels that provide an incentive to farmers to produce larger harvests. This should lead to strong demand for fertilizer in regions with the greatest potential for agricultural expansion, such as Brazil. At the same time, a high price, volatile environment will require disciplined use of working capital and effective risk management."

    CONSOLIDATED STATEMENTS OF INCOME
    (In millions, except per share data and percentages)
    (Unaudited)

                           Quarter Ended              Six Months Ended
                              June 30,      Percent       June 30,     Percent
                          2008        2007   Change   2008        2007  Change

    Net sales (Note 1)  $14,365      $8,298    73 % $26,834     $15,641   72 %
    Cost of goods sold
     (Note 1)           (12,914)     (7,766)   66 % (24,516)    (14,809)  66 %

    Gross profit          1,451         532   173 %   2,318         832  179 %
    Selling, general
     and administrative
     expenses              (460)       (307)   50 %    (862)       (572)  51 %
    Interest income          54          37    46 %     102          68   50 %
    Interest expense        (57)        (51)   12 %    (125)        (92)  36 %
    Interest expense on
     readily marketable
     inventories            (33)        (28)   18 %     (63)        (57)  11 %
    Foreign exchange gain
     (loss)                 258          93   177 %     265         122  117 %
    Other income
     (expense) . net         (9)          1 (1000)%     (12)          3 (500)%

    Income from operations
     before income tax    1,204         277   335 %   1,623         304  434 %
    Income tax expense     (337)        (70)           (454)        (76)

    Income from operations
     after income tax       867         207   319 %   1,169         228  413 %
    Minority interest      (109)        (35)  211 %    (142)        (47) 202 %
    Equity in earnings
     (loss) of affiliates    (7)         (4)   75 %      13           1 1200 %

    Net income              751         168   347 %   1,040         182  471 %

    Convertible preference
     share dividends        (20)         (9)            (39)        (17)
    Net income available to
     common shareholders   $731        $159   360 %  $1,001        $165  507 %


    Earnings per common
     share - diluted
     (Note 2):            $5.45       $1.30   319 %   $7.56       $1.35  460 %

    Weighted-average
     common shares
     outstanding -
     diluted
     (Note 2)       137,788,430 129,487,981     137,586,015 121,814,664

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