Processing

News 287 views last update:6 Aug 2012

Bunge expects improved 2007 earinings

"Bunge finished 2006 on a promising note. Our team did an excellent job of delivering results and produced strong second half performances in all of our operating segments. We expect 2007 to be a year of improved earnings," said Alberto Weisser, Bunge's Chairman and Chief Executive Officer, when presenting Q4 and 2006 results.

"Over the past several months we have seen clear signs of improvement in the Brazilian agribusiness and fertilizer markets. There are still some challenges, such as the strong real, but higher commodity prices, large new corn and soybean crops and continued government support have improved farm economics in the country and should translate into more crop sales and larger fertilizer purchases in 2007.

"Steps taken in late 2005 and early 2006 to restructure our Brazilian businesses, lower costs and enhance our foreign currency risk management should position Bunge to benefit from improving Brazilian market conditions.

Biofuels change industry
Weisser noted that the emerging biofuels industry is creating higher demand for their core products and is materially influencing global supply and demand.

Bunge is taking a focused approach to the biodiesel and corn ethanol industries. It is making minority investments in well-positioned assets and acting as a raw material and service supplier to biofuels producers.

Bunge's overall strategic focus remains on the agribusiness and food industries, where they see great opportunity driven by strong demand for their core products.

In 2007, the company will expand capacity at its sunflower seed crushing plant in Martfu, Hungary to grow its presence in Eastern Europe.

New mill in Brazil
Bunge is also to build a new wheat mill in northeastern Brazil to improve production efficiency and continue increasing its fertilizer mining and production operations to meet future growth in Brazilian agriculture.

Furthermore Weisser said that Bunge will complete its two Canadian crushing and refining capacity expansion projects and increase its presence in the global sugar and sugar-based ethanol markets.

Also, the oilseed processing facilities in Ukraine, Russia and Spain and the new grain and fertilizer terminals in the port of Santos, Brazil will come fully online during 2007.

Detailed financial information can be found on the Bunge website or listen to the webcast on Q4 results (registration required).

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