World Grain - March 2012 - 20

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Bunge profit falls, but ag results stay strong
WHITE PLAINS, N.Y. — Net income at Bunge Ltd. in the year ended Dec. 31, totaled $942 million, equal to $6.07 per share on the common stock, down 60% from $2.354 billion, or $15.06 per share, in ﬁscal 2010. Net sales during ﬁscal 2011 were $58.743 billion, up 29% from $45.707 billion in ﬁscal 2010. “In 2011, Bunge produced strong results in many parts of our business, but faced signiﬁcant headwinds in others,” said Alberto Weisser, chairman and chief executive ofﬁcer. “On a combined basis, our agribusiness, edible oils and milling segments generated record full-year results of over $1.1 billion. However, reduced sugarcane production yields in Brazil due to back-to-back years of poor weather had a material impact on volumes in our sugar and bioenergy segment.” “Higher oilseed processing results in Asia, Europe and South America were offset by weaker results in the U.S.,” Bunge said of fourth-quarter results in the Agribusiness segment. “Grain merchandising results were lower, compared to an extraordinarily strong period last year. Increased volume in the quarter was primarily driven by higher grain merchandising out of the Black Sea region, the addition of new grain facilities in the U.S., increased oilseed processing in Brazil and two new oilseed processing facilities in Asia that started up earlier in the year.” For Milling Products, ﬁscal 2011 EBIT was $104 million, up from $67 million in ﬁscal 2010. Net sales for the year rose 25% to $2.006 billion from $1.605 billion. For the fourth quarter, EBIT was $25 million, up from $14 million in the previous year’s fourth quarter, and sales were $490 million, up from $409 million. Bunge said its fourth-quarter 2010 results included a $9 million impairment charge related to a long-term supply contract that accompanied an acquisition of a wheat mill. Looking ahead, Weisser said 2012 will present some challenges, especially early in the year. But the company remains conﬁdent and expects to generate good results. “We see positive signs in the industry and have conﬁdence in our business,” he said. “The USDA forecasts global protein meal and vegetable oil demand to both grow at 4% this year. Production and trade of agricultural commodities are expected to increase.”

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Emerald grain train hauls first loads
MELBOURNE, AUSTRALIA — The Emerald Group’s ﬁrst grain train has entered service, hauling grain from southern New South Wales to Melbourne, the company said on Feb. 24. Carrying around 1,500 tonnes of wheat each trip, the train operated for Emerald by El Zorro will be operating from the Australian Bulk Alliance (ABA) facility at until the end of February. It moves on to the ABA site at Coolamon during March, again to haul to ABA’s Melbourne Port Terminal. Two more trains will begin operating for Emerald later in 2012. Emerald Managing Director Mick Cattanach said the ﬁrst train marked important progress in Emerald’s move to a more integrated supply chain and greater service for its grower customers. “We use road transport extensively and it serves us well. However, when it comes to moving large tonnages over long distances from country storage to port terminal, rail is the clear preference. “In a year when big crops have meant the export task is massive, this additional capacity is hugely important to clearing grain from country storages and meeting shipping schedules in a cost-effective manner.”

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World Grain - March 2012

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