Bunge YTD Earnings Rise

NEW YORK - Oct 29/15 - SNS -- Bunge Limited reported net earnings of U.S. $239 million on sales of $10,787 million during the third quarter ending September 30, compared to net earnings of $294 million on sales of $13,676 million during the same three-month period last year.

This lifted net earnings for the fiscal year to $588 million on sales of $32,375 million, compared to a net of $569 million on sales of $43,930 million during the first three quarters of the previous fiscal year.

Commenting on the results, Soren Schroder, Bunge's Chief Executive Officer, said, "Agribusiness delivered a good third quarter. The segment capitalized on favorable soy processing margins and increased farmer selling in Brazil, and generated solid risk management income. Food and Ingredients showed sequential improvement from the second quarter driven by our North American operations, but the tough economic environment in Brazil and rapid devaluation of the real continued to present challenges.

¨Schroder added, "We announced bolt-on acquisitions during the quarter that included Brazilian wheat processor, Moinho Pacifico, and U.S. specialty oil producer, Whole Harvest Foods. Pacifico is the largest port based wheat mill in Brazil, which along with our new mill under construction in Rio de Janeiro, will allow us to efficiently serve the growing needs of our customers as the Brazilian economy recovers. Whole Harvest Foods expands our North American specialty oil product offering in the fast growing natural ingredient category."

In the oilseeds division, soybean processing in the U.S., Brazil, Argentina and Europe were the largest contributors to the quarter, benefitting from strong domestic and export demand for soy meal. Softseed processing results in Europe and Canada were down as farmers retained seed. Results in oilseed trading and distribution were lower than last year.

In the grains division, higher results were primarily driven by Bunge's Brazilian grain origination operation which experienced a significant pick-up in volume in the quarter with the devaluation of the real. Grain origination results in other origins were similar to last year and did not make a significant contribution to results due to slow farmer selling. Results in grain trading and distribution which included the recovery of approximately $50 million of losses on open positions at the end of Q2, were good and similar to last year.

Looking forward, Drew Burke, Chief Financial Officer, said, "In Agribusiness, strong underlying demand for soymeal and oil will continue to support a favorable U.S. and Brazilian soy crushing environment. European sunseed crush margins have improved in certain countries with the arrival of harvest; however, rapeseed and Canadian canola margins continue to be pressured by weak demand and a reluctant farmer.

"With the arrival of new crops, utilizations in our North American grain operations are picking up, although export margins are weak due to farmer retention and increased global competition. Our Brazilian grain handling assets, on the other hand, should benefit from strong export flows of corn due to this year's large safrinha crop."