Bunge Profits Jump in Q2

NEW YORK - Jul 31/14 - SNS -- Bunge Limited reported net income of U.S. $272 million on sales of $16,793 million for the second quarter ending June 30, compared to net income of $110 million sales of $15,491 million during the same three month period last year.

This lifted net income for the first half of the current fiscal year to $245 million on sales of $30,254 million, compared a net of $280 million on sales of $30,276 million during the same six-month period last year.

Bunge said a strong global oilseed processing environment in most regions of the world was the primary driver of higher results in its agribusiness division during the quarter. In the Southern Hemisphere, record soybean crops, strong export demand and good farmer selling led to solid processing margins. Oilseed processing results were also higher in the Northern Hemisphere led by strong softseed margins in Canada and soybean margins in Europe. U.S. soybean processing results were comparable to last year. Results in China were down.

Grain origination results were within expectations, but lower than last year primarily due to Brazilian farmers postponing commercialization of the safrinha corn crop as a result of the drop in market prices. Risk management results were comparable to last year and in line with expectations.

In its edible oil products division, Bunge said strong results in the quarter were driven by improved performances in Brazil and in Europe with both regions expanding margins and tightly managing costs and working capital. While margins expanded in North America, one-time costs in logistics due to backlogs and some short-term cost increases in maintenance led to lower results in this region. Results in Argentina were flat with last year; results in Asia were slightly lower.

Record results in the milling products division were driven by strong performances in our wheat milling operations in Brazil and Mexico. In Brazil, results benefitted from an increased focus on margins and driving greater efficiencies in our plants and supply chain network. Milling results in Mexico reflected our new wheat milling acquisition and synergies from its integration with our existing operation. Results in U.S. corn milling were lower than last year primarily due to lower margins. Results in rice milling were comparable to last year.