Agricultural commodities trader and processor Bunge raised its full-year profit forecasts after releasing on Wednesday an adjusted third-quarter result that beat expectations, leading shares to rise in premarket trading.
The improved forecast was attributed to favorable market conditions, as tight global crop supply and strong demand benefited supply chain intermediaries such as Bunge, which buys and sells products such as soybeans and corn and processes them into food, feed. and biofuels.
Net income attributable to Bunge fell to $380 million, or $2.49 per share, from $653 million, or $4.28 per share, a year earlier.
Adjusted for non-recurring items, earnings were $3.45 per share, down from $3.72 per share in the same quarter last year but above the analyst consensus estimate of $2.49.
Bunge raised its full-year 2022 earnings guidance to $13.50 per share, after increasing to $12 per share three months earlier, as outlook for its core business segments improved.
Its agribusiness unit delivered mixed results for the quarter ended September 30, as significantly higher energy costs in Europe and weaker demand in China due to Covid restrictions offset stronger results from oilseed processing in America. from North and South.
Bunge’s refined and specialty oils segment, however, posted stronger quarterly gains, driven by solid results in the Americas and Europe.
Bunge’s earnings provided a taste of how grain traders weathered high crop and energy prices and supply chain disruptions, including delays in exports at Ukraine’s Black Sea ports following the Russian invasion.
Rival Archer-Daniels-Midland Co on Tuesday reported its biggest third-quarter profit on record and raised its full-year profit outlook.
Source: CNN Brasil
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