Bunge Limited announced earnings per share of $1.49 for the last quarter of 2015.
"In 2015, the Bunge team achieved numerous milestones: record agribusiness EBIT, fourth quarter trailing ROIC in our core agribusiness and food operations of 10% and approximately $100 million of savings from performance improvement initiatives,” said Soren Schroder, Bunge’s CEO in a media statement.
Looking ahead to this year, he said global demand for their global agribusiness products continues to grow. Brazil is expected to produce large corn and soybean crops and prices for Brazilian ethanol have improved.
“But challenges are also evident,” Schroder said. “Conditions remain difficult for our Brazilian food and ingredients business. Northern hemisphere oilseed processing margins and grain exports will be pressured until markets adjust to the increased level of global supplies.”
Fourth quarter results
-Agribusiness – Soybean processing was higher in Brazil, Argentina, Europe and Asia. U.S. operation was impacted by increased global export competition.
-Edible oil products – North American business performed well, results in Asia were lower and there’s growth in India and China.
- Milling products – Integration of acquisitions in Mexico, U.S. and Brazil continues, as does the rebuild of world-class mill in Rio de Janeiro.
-Fertilizer – Results were lower than last year, primarily due to reduced volumes and margins at their Brazilian port operation.
Bunge CFO Drew Burke said they expect higher results in food and ingredients in 2016.
“While our Brazilian operations will continue to face headwinds, we are optimistic about the outlook of our foods businesses in other regions, in particular U.S. packaging, which should build off its record 2015 performance and India oils, which is benefitting from strong volume growth and an expansion into higher margin products,” he said.
Source: Bunge Limited
Reuters: Bunge shares sink 14% as CEO predicts difficult year
Sluggish U.S. exports contribute to lower profits.
Bloomberg: Bunge profit disappoints on weaker oilseed-crush margins
Bunge posted lower-than-expected earnings after U.S. soybean processing margins and Brazilian demand for margarine and wheat fell.
St. Louis Post-Dispatch: Bunge expects challenging year; earnings miss estimates
The company faces pressure because of global glut of corn and soybeans.