Bunge's first quarter results to be weaker than 2006
April 03, 2007
by FoodBusinessNews.net Staff
WHITE PLAINS, N.Y. — Because of lower-than-anticipated agribusiness results, Bunge Ltd. said it expects its results for the first quarter of fiscal 2007 to be below that of the same period of 2006 and below the current analyst consensus estimate.
"During the first quarter the value of the physical cash commodity markets did not mirror the increase in value in the futures markets, which we use to hedge our commodity inventories and forward purchases," said Alberto Weisser, chairman and chief executive officer. "This resulted in unrealized mark-to-market losses. Earnings can shift among quarters in our industry, so we view our business on an annual basis. Market fundamentals are solid, and we expect to achieve our forecasted full year results."
Overall, the company expects to near breakeven for the quarter. The company said its net income guidance for the year ending Dec. 31, 2007, at $590 million to $610 million, or $4.56 to $4.71 per share.
The first-quarter results will be announced on April 26.