Dive Brief:
- Bunge Ltd. reported revenue of $16.8 billion for the second quarter, a rise of 8.4% from a year earlier and above analysts estimates.
- The White Plains, NY-based ag trader said net earnings for the quarter stood at $272 million -- a dramatic jump from the $110 million reported a year ago.
- Bunge benefited from a record soybean crop, particularly in South America, which led to a surge in oilseed production.
Dive Insight:
There are a number of tidbits worth noting from Bunge's performance and earnings call.
First, the soybean situation is even more remarkable than anticipated. World soybean inventories have reached an all-time record, and that's good news for Bunge. It may, or may not, turn out to be good news for the remainder of the so-called ABCD companies that dominate global ag trading. ADM, Cargill, and Louis Dreyfus are not as soybean-centered as Bunge is.
Second, Bunge said that its sugar and bioenergy unit posted a profit of $6 million. That's not much money, but it's much better than the $3 million loss seen a year earlier. Bunge has long struggled with the sugar cane business, and reiterated yesterday that it may sell the unit.
Third, Bunge seemed to do much, much, much better in the futures market in the second quarter than it did in the first, when hedging losses shocked Wall Street.