Bunge Reports On Q1 of FY2018


For the 1st Quarter of FY 2018 Bunge reported a loss of $21 million on sales of $10.64 billion. The net loss includes a $19 million tax benefit. EPS was a negative $0.21.

For the corresponding 1st quarter of 2017, Bunge posted a profit of $39 million on sales of $11.12 billion with a $0.27 EPS.

For Q1 of fiscal 2018, none of the five operating divisions contributed to earnings. These comprised Agribusiness; Edible Oils; Milling; Sugar; Fertilizer.

In commenting on results, Soren Schroeder, CEO provided optimistic guidance expecting $1 billion from the agribusiness segment mainly derived from higher soybean crushing margins and consolidation of Loders Croklaan. The global competitiveness program should generate $100 million in savings. The CEO did not comment on the impact of a potential trade war between the U.S. and China. Although no embargos or duties have been placed on soybeans as of the second week in May shipments to China have ceased following precipitous action by China on sorghum.

In February, it was widely rumored that ADM would make a bid for Bunge. Since this time, neither ADM nor previous suitor Glencore have made any announcement as to their intentions. The ADM acquisition of Bunge would be subjected to Federal scrutiny relating to competition.