(Reuters) – Grain trader and processor Bunge beat Wall Street expectations for third-quarter profit on Wednesday, helped by higher sales volumes.
Bunge and rival Archer-Daniels-Midland had expected increased profitability due to a spike in crop sales by U.S. farmers, which provided cheaper soybean ownership and helped utilize any excess manufacturing capacity. In July, Bunge had forecast an improvement in processing margins and higher crop sales by farmers and raised its full-year adjusted profit guidance.
Sales volumes improved in its Agribusiness as well as Refined and Specialty Oils segments. However, core earnings in both segments were down from the prior year, reflecting the current global margin environment, the company said.
The upbeat results come as Bunge is waiting to close a $34-billion merger with Glencore-backed Viterra. The deal, which was announced last year and has been approved by Bunge’s shareholders, awaits regulatory approvals in key markets.
Bunge reiterated its full-year adjusted profit forecast of $9.25 per share. Analysts had expected $9.43 per share.
The Chesterfield, Missouri-based company reported an adjusted profit of $2.29 per share for the quarter ended Sept. 30, compared with analysts’ estimate of $2.15 per share, according to data compiled by LSEG.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Pooja Desai)
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