World Grain - May 2013 - 16

newsreview
Bunge earnings up on sales growth
WHITE PLAINS, NEW YORK, U.S. — Bunge reported on April
25 net income available to common shareholders increased to $170
million, or $1.15 per share, for the ﬁrst quarter from $84 million and
57¢ per share a year ago.
Earnings from continuing operations increased to $1.21 to 81¢. Net
sales increased to $14.79 billion from $12.91 billion in the previous year.
“We had a solid ﬁrst quarter. Our agribusiness team performed
well, managing risk in a volatile market environment characterized
by tight global supplies and challenging Brazilian logistics. We are
pleased to see Sugar & Bioenergy get off to a good start to the year,
and that Food & Ingredients continued its strong performance from
the second half of last year,” said Alberto Weisser, Bunge’s chairman
and chief executive ofﬁcer.
Improved oilseed processing results in the quarter were more than
offset by lower results in grain merchandising. Bunge said its merchandising business beneﬁted from strong global demand for Brazilian corn and soybean exports. However, lower grain origination
in Argentina and the Northern Hemisphere due to tight supplies adversely impacted results.
Soybean processing was higher in all geographies with the largest contribution coming from the U.S., which beneﬁted from strong
export demand due to tight supplies and delays in South American
harvests. Results in softseed processing in Canada and Europe were
lower due to margin pressure from weather-related supply shortages
and slow farmer selling.
The ﬁrst quarter is the inter-harvest in Brazil when sugarcane mills
in the Center-South region typically do not operate until the end of
the quarter and are selling sugar and ethanol inventories from the

previous sugarcane harvest. Results were higher in the quarter due to
improved performance in all parts of the segment. Sugarcane milling
beneﬁted from the combination of lower inventory costs and higher
average ethanol prices. Due to heavy rains during the month, the
startup of some of Bunge’s mills was postponed. This weather delay
will have a positive impact on the development of the sugarcane, but
a portion of the start-up costs associated with the mills will shift to
the second quarter.
Trading & Merchandising beneﬁted from higher volumes and
margins on export programs and good risk management. U.S. biofuels beneﬁted from higher results in Bunge’s ethanol joint venture due
to improved margins.
Higher results in the quarter were primarily due to improved
performance in Brazil, which experienced a challenging prior-year
period, and in India, which more than offset lower results in North
America and Europe.
“Looking ahead, agribusiness markets are transitioning from ones
of tightness to more comfortable supplies. Customer inventory pipelines are lean and in need of restocking, so demand should remain
strong,” Weisser said. “Farmers in South America responded with
record production and farmers in the Northern Hemisphere are expected to respond similarly. The logistics congestion in Brazil is improving, but delays will continue to persist until the U.S. harvest later
this year. We see positive signs in Sugar & Bioenergy as the weather
in the Center-South of Brazil has been ideal for cane development
and early readings of ATR, the sugar content in the cane, are on track
to return to more normal levels. We expect Food & Ingredients results to continue to improve throughout the year.”

Bunge appoints new North America CEO
WHITE PLAINS, NEW YORK, U.S. — Bunge Limited announced
on April 9 the appointment of Todd Bastean as chief executive ofﬁcer
(CEO), Bunge North America, effective June 1.
Bastean, currently chief ﬁnancial ofﬁcer, Bunge North America,
succeeds Soren Schroder, who will become CEO of Bunge Limited
on the same date. Schroder will assume the role of CEO from Alberto Weisser, who earlier this year announced his retirement after
15 years leading the company.
“Todd has been instrumental to Bunge North America’s growth
and success for nearly 20 years,” said Weisser, chairman and
CEO, Bunge Limited. “He knows our North American business
inside and out, having served as CFO, as a manager of key opera-

tions and in a variety of functional roles. I am
conﬁdent that Todd will be an effective leader
of this important part of Bunge’s business and
a valuable member of the company’s global
management team.”
Bastean started his career at Bunge in 1994
and became CFO of Bunge North America in
2010. Before assuming that role, he served as
vice-president and general manager of the opBastean
erating company’s milling and biofuels business units and as vice-president and chief administrative ofﬁcer
of its grain and milling business units.

KSU adds feed technology associate professor
MANHATTAN, KANSAS, U.S. — Kansas State University (KSU)
announced on April 17 the addition of Charles Stark to the College of
Agriculture as he joins the Department of Grain Science and Industry
and the Department of Animal Sciences and Industry.
Stark will serve as the Jim and Carol Brown associate professor
in feed technology and manufacturing, and faculty coordinator of the
O.H. Kruse Feed Technology Innovation Center.
“I believe the feed science program is at a crossroads in history with this unique faculty position,” Stark said. “The opening of
the O.H. Kruse Feed Technology Innovation Center will allow the
faculty and staff to build upon the rich history of both departments,
while creating new and exciting programs that will provide global
16

leadership and help feed 9 billion people by 2050.”
Stark previously served as an assistant professor and extension specialist in the Prestage Department of Poultry Science at
North Carolina State University and has been working in the feed
industry for the last 20 years. He has provided audits, technical
support and training to over 33 feed mills in eight different countries. He says his goal is to be able to use these experiences to
beneﬁt feed mills, grain elevators and animal producers in Kansas
and beyond.
Beginning in early August, Stark will assume his responsibilities
at KSU in teaching, research and outreach, and says he is especially
looking forward to working with students.
May 2013 / World Grain / www.World-Grain.com

http://www.World-Grain.com

World Grain - May 2013

Table of Contents for the Digital Edition of World Grain - May 2013