White Plains, N.Y.-Bunge Ltd. reported a 113 percent drop in fertilizer earnings before interest and tax (EBIT) for the second quarter ending June 30, 2009. The unit saw a loss of $53 million on sales of $841 million versus the year-ago positive $393 million and $1.78 billion. Fertilizer volumes were off 19 percent to 2.43 million mt from the year-ago 3 million mt. Second-quarter results saw an inventory write-down of $121 million reflecting declining fertilizer prices. Six month fertilizer EBIT was down 160 percent to a negative $315 million on sales of $1.54 billion versus the year-ago positive $526 million and $2.98 billion. Volumes were off 21 percent, to 4.49 million mt from 5.67 million mt. Company-wide, Bunge net income was off 63 percent to $322 million ($2.28 per diluted share) on sales of $10.99 billion versus the year-ago $860 million ($5.45 per share) and $14.36 billion, respectively. Six month net income was off 88 percent to $146 million ($.64 per share) on sales of $20.2 billion versus the year-ago $1.18 billion ($7.56 per share) and $26.83 billion. Bunge is expecting a strong second half, saying that its fertilizer economics have stabilized. It continues to maintain full year guidance of $4.90-$5.40 per share.
Transparency Across the Fertilizer Value-Chain