Bunge Earnings Slide This year

NEW YORK - Oct 22/09 - SNS -- Bunge Limited reports net income of U.S. $232 million on sales of $11,298 million during the third quarter ending September 30, compared to a net of $234 million on sales of $14,797 million during the same three month period last year.

This lifted fiscal year to date net income to $350 million on sales of $31,490 million, compared to a $1,274 million on sales of $41,631 million last year.

Alberto Weisser, Bunge's Chairman and Chief Executive Officer stated, "Bunge produced mixed results in the third quarter. Our agribusiness operations performed well during a volatile period, demonstrating the value of our global franchise and the ability of our team to manage risk effectively. Edible oils also posted a solid quarter. On the other hand, margins in our fertilizer business continued to be pressured by high-cost inventory and a weak pricing environment.

"After rising during the beginning of the third quarter, international phosphate prices pulled back on lackluster global demand. This factor, combined with lower demand in the Brazilian fertilizer market due to reduced planting of fertilizer-intensive corn and cotton, as well as farmers' cautious approach to input purchases, contributed to a weaker than expected domestic pricing environment. While we expect these conditions to persist in the fourth quarter, our margin structure should reset to more traditional levels in 2010 as we replenish our inventories at market cost.

"We expect the overall environment in 2010 to be one in which Bunge can perform well. The USDA forecasts demand for soybean meal and vegetable oil to each increase by 4% relative to this year. Despite the anticipation of large crops in the northern and southern hemispheres, global grain and oilseed stocks will remain tight when compared to historical levels. Futures prices reflect these expectations and, at current levels, should provide attractive margins for farmers and encourage input purchases.

"This quarter we laid the foundation for our new export grain terminal in the U.S. Pacific Northwest. Building our global grain business is one of our core strategies and this terminal is a significant part of that effort. When completed, it will handle over 8 million tons of grains and oilseeds a year and serve as an important link between our North American grain business and our customers in Asia. We are also expanding in food and ingredients. Earlier this month, we closed on our acquisition of Raisio's margarine businesses in Europe. The transaction includes two margarine production facilities and a portfolio of consumer margarine brands."

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