World Grain - December 2014 - 17

newsreview
Bunge's third-quarter results lag on weak agribusiness performance
WHITE PLAINS, NEW YORK, U.S. -
Bunge's performance for the third quarter
ended Sept. 30 was negatively impacted by
an 8.2% drop in sales for the Agribusiness
segment. Sales in the Agribusiness segment
- the company's largest by revenue -
dropped to $9.8 billion from $10.7 billion
for the third quarter of 2013.
Net income for the third quarter was $294
million compared to a loss of $148 for the
same period last year.
"Third-quarter results were lower than last
year, however Bunge is in a strong position
to meet or exceed our full-year, combined
return target of 1.5 points above cost of capital in Agribusiness and Food & Ingredients,"
Soren Schroder, Bunge's chief executive of-

Results in corn and rice milling were comparable to last year. Third quarter 2013 results
included a $7 million charge related to transactional taxes in Brazil.
"In Food & Ingredients, Milling continued its good performance and we made
steady progress on our improvement efforts
in Edible Oils, although results in that busi-

within our range of expectations. The transition from tight to plentiful global grain and
oilseed supplies, highlighted by falling prices
and some of the slowest farmer selling in
recent memory in South America, created a

ness were impacted by logistics issues and
tight raw material supply in North America,"
Schroder said. "The fourth quarter is a period of seasonally strong demand for Food
& Ingredients, and this, combined with additional contributions from improvement initiatives, should help us reach another record
year for the segment."

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quarter. Our Agribusiness team managed the
crushing margins and high utilizations at export facilities throughout the Northern Hemisphere should deliver a good fourth quarter."
The company said its Agribusiness segment's third quarter was characterized by
cant drop in commodity prices. As a result,
Bunge's grain origination results were lower
than last year, especially in South America. In
Brazil, Bunge experienced the lowest level of
forward selling of new crops in years and in
Argentina farmers are holding soybeans as a
ation. This, combined with the impact of ap-

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American and European oilseed processing
and distribution businesses, were the primary
drivers of lower year-over-year results.
The Milling Products segments higher results were attributed to improved performance
in Bunge's Brazilian wheat milling business,
production yields, and the addition of Bunge's
new wheat mills in Mexico. The integration
of these mills continues to progress well with
pany said. It has made improvements to the
cost structure through reducing energy consumption, broadening raw material sourcing
and streamlining the organizational structure.

GAMET MANUFACTURING
7400 Boone Ave. N.
Brooklyn Park, MN USA 55428

Toll Free 888-647-5475
gametmfg.com

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World Grain - December 2014

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