White Plains, N.Y.-Bunge reported that its fertilizer results for the third quarter ending Sept. 30, 2010 significantly improved over the prior year period. It reported higher margins in Brazil, which were partially offset by lower volumes. It said the Argentine business performed well and that higher equity earnings of its affiliates reflect results from its joint venture with Morocco’s OCP, which was in start-up last year. Moving into the fourth quarter, Bunge said fertilizer demand should benefit from the delayed start of planting due to poor weather conditions in Brazil. Overall, reduced fertilizer numbers reflect Bunge’s sale of major assets in Brazil to Vale S.A. “While fertilizer is performing below its full potential, we are making steady progress in restructuring the business following the sale of our Brazilian nutrients assets in the second quarter,” said Alberto Weisser, Bunge chairman and CEO. Third-quarter volumes were 1.77 million mt, down from the year-ago 3.8 million mt. Gross profit was $43 million on sales of $655 million, compared to a year-ago loss of $162 million and $1.19 billion. Fertilizer EBIT was $14 million, up from a year-ago loss of $127 million. Nine-month volumes were 6 million mt, down from the year-ago 8.3 million mt. Nine-month gross profit was $93 million on sales of $1.99 billion, up from the year-ago loss of $567 million and $2.73 billion. Fertilizer EBIT was $2.34 billion, mainly reflecting the sale of assets, compared to the year-ago loss of $442 million. Company-wide, Bunge reported third-quarter net income attributable to Bunge of $212 million ($1.36 per diluted common share) on sales of $11.7 billion, versus the year-ago $232 million ($1.62 per share) and $11.3 billion. Nine-month net income was $2.05 billion ($13.09 per share) (reflecting the Vale sale) on sales of $33 billion, versus the year-ago $350 million ($2.48 per share) and $31.5 billion.
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