White Plains, N.Y.-Bunge Ltd. reported that fertilizer operating profits were up 156 percent, to $517 million on sales of $3.94 billion for the year ending Dec. 31, 2007, compared to 2006’s $202 million and $2.6 billion, respectively. Volumes sold were up 13 percent, to 13.1 million mt from 11.58 million mt. Fourth-quarter fertilizer profits were up 17 percent, to $103 million on sales of $1.28 billion, up from the year-ago $88 million and $918 million, respectively. Tonnage was off 10 percent for the quarter, to 3.55 million mt from the year-ago 3.92 million mt. Bunge said demand slowed in the fourth quarter after above-trend-lie volume growth in the first half. Bunge credited the unit’s strong performance on higher margins due to higher international fertilizer prices. For 2008, Bunge said a strong real will increase local costs for its Brazilian businesses, meaning that higher input costs could pressure fertilizer margins. In the fertilizer sector, Bunge said fourth-quarter results include a $50 million increase in value-added tax provisions resulting from a tax change in several Brazilian states that will take effect in 2008. Bunge said the recoverability of these taxes is uncertain. Bunge-wide, the company saw a 49 percent increase in net income for 2007, to $778 million ($5.95 per diluted share) on sales of $44.8 billion, compared to 2006’s $521 million and $26.3 billion, respectively. Fourth-quarter net income was off 7 percent, to $245 million ($1.82 per share) on sales of $14.0 billion, versus the year-ago $264 million ($2.12 per share) and $7.7 billion.
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