White Plains, N.Y.-Bunge Ltd. reported a strong first-quarter performance for its fertilizer business, due to higher volumes as farmer demand increased in connection with the winter corn crop and improved farm economics. Higher international prices from imported fertilizers and raw materials into Brazil helped increase local margins. Fertilizer operating profit was $65 million on sales of $613 million (2.45 million mt) for the first quarter ending March 31, versus the year-ago $31 million and $420 million (1.71 million mt), respectively. Based on current market conditions, fertilizer earnings should exceed original estimates. Bunge has increased its year-over-year growth forecast for the Brazilian retail fertilizer market to 9 percent. Bunge-wide, net income was off 76 percent, to $14 million on sales of $8.2 billion, versus the year-ago $58 million and $5.6 billion, respectively. Bunge blamed a disappointing quarter on its agribusiness segment, primarily due to mark-to-market losses on hedged commodity inventories and forward purchases. Overall, Bunge expects to achieve its fiscal goals in 2007, though agribusiness expectations will be off while fertilizer will be up. Net income guidance is $590-$610 million, or $4.56-$4.71 per share.
Transparency Across the Fertilizer Value-Chain