White Plains, N.Y.-Fertilizer earnings before interest and taxes (EBIT) for Bunge Ltd. were off 656 percent in the fourth quarter ending Dec. 31, 2008, to a negative $289 million versus the year-ago $52 million. However, for the year ending in December, EBIT was up 18 percent, to $321 million versus 2007’s $271 million. Fourth-quarter fertilizer sales were off 23 percent and volumes were off 33 percent. Bunge said fert results suffered in the quarter due to low sales activity, falling prices, and the devaluation of the Brazilian real. Volumes were lower due to tight farmer credit. Sales were $985 million, down from $1.27 billion, while volumes were 2.39 million mt, down from 3.55 million. Annual sales were up 50 percent, to $5.86 billion versus the year-ago $3.92 billion, while volumes were off 15 percent, to 11.13 million mt versus 13.1 million mt. Company-wide, Bunge posted a fourth-quarter loss of $210 million ($1.89 per diluted share) on sales of $10.94 billion, versus the year-ago $245 million ($1.82 per share) and $12.47 billion, respectively. For the year, Bunge net income was up 37 percent, to $1.06 billion ($7.73 per share) on sales of $52.57 billion, versus 2007’s $778 million ($5.95 per share) and $37.84 billion. Bunge said that overall, periods of low demand are short lived for its core products. It expects to work through higher cost inventories of fertilizer in the first half of 2009. It also expects tight agricultural commodity supplies will support Brazil farm economics and spur fertilizer purchases. The company is giving 2009 guidance of $6.90-$7.60 per share.
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