White Plains, N.Y.-Bunge Ltd. said June 23 that it is increasing its 2008 full-year earnings guidance from $7.10 to $7.40 per share to $9.35 to $9.65 per share. The increase is attributed to better-than-expected performance in Bunge’s agribusiness and fertilizer segments. “We continue to benefit from good fundamentals in our core markets. Despite the higher commodity prices, customer demand has been firm,” said Jacqualyn Fouse, CFO. “Generally oilseed processing margins are strong around the world and high international fertilizer prices are benefiting margins in our fertilizer business.” In other news last week, Bunge announced that it will acquire Corn Products International Inc. in an all-stock transaction valued at approximately $4.8 billion, including assumption of $414 million in debt. Corn Products stockholders will receive common shares of Bunge with a market value of $56.00 for each share of Corn Products common stock that they own, subject to adjustment. Following the closing of the transaction, Corn Products stockholders will own approximately 21% of Bunge’s fully diluted shares. Bunge said Corn Products is the leading pure-play franchise in corn refining and will add higher-margin starch and sweetener products to Bunge’s product portfolio, expanding operations in important growth markets and diversifying the revenue stream with a solid cash flow business. Upon closing, Corn Products will become a wholly-owned subsidiary of Bunge. Neither company expects the closure of any industrial facilities as a result of this deal. After closing, Corn Products will maintain its operational headquarters in Westchester, Ill., and continue to use the Corn Products brand name. In 2007, Bunge reported net income of $778 million and generated total segment EBIT of $1,230 million. During the same period, Corn Products reported net income of $198 million and operating income of $347 million.
Transparency Across the Fertilizer Value-Chain