Bunge Limited (NYSE:BG) reported third-quarter results Wednesday morning. The White Plains, New York food products company declared Q3 GAAP Earnings per Share of $2.39 vs. $0.59 in the prior year; $2.52 vs. $0.75 on an adjusted basis.
BG’s Agribusiness results were driven by strong soybean crushing margins; includes ~$155 million of new mark-to-market gains on forward soy crushing contracts
Bunge CEO Soren Schroder commented, "Bunge produced a strong third quarter, supported by the prudent actions we took in the second quarter to secure crush margins at multi-year highs, positioning the company for a strong second half performance. Milling also had a good quarter; however, margins in Edible Oils remained under pressure due to a surplus of soy oil resulting from the strong global crushing environment.
"The integration of our recent acquisition of Loders Croklaan is on track, and the combined Bunge Loders Croklaan platform will be an important driver of earnings going forward."
The Company’s Global Competitiveness Program is expected to deliver full savings a year ahead of schedule; increasing 2018 savings target to $175 million from $150 million
Looking forward, BG expects 2018 full-year EBIT outlook of ~$1.2 billion, ~$600 million higher than prior year, and combined core Agribusiness-Foods Return on Investment Capital to exceed Weighted Average Cost of Capital
Bunge stock opened Wednesday down $3.41, or 5% to $64.56, within a 52-week trading range of $61.28 to $83.20.
