Bunge (NYSE:BG) got hammered in the second quarter, surprising almost everyone, as they missed earnings estimates by more than double.
Earnings for the quarter excluding charges came to a loss of 75 cents share, while analysts had been looking for a profit of $1.31 a share.
Some reports were based on including the one-time gain of $2.4 billion, which made it appear Bunge had exploded in earnings. Including items that would be true, as they garnered earnings of $1.8 billion, or $11.15 a share.
That was up from the $313 million, or $2.28 a share last year in the same quarter.
Most investors, analsysts and traders know that game though, and the quarter was a disaster for Bunge, as earnings are measured excluding items and charges.
Revenue was also diappointing in the quarter, coming to $10.97 billion, where analysts estimated $12.17 billion.
Earnings for the year was also downwardly revised by Bunge from a range of $5.30 to $5.80 a share to a range of $3.25 to $3.50 a share.
Traders punished the company on the news, with shares dropping to
$46.94, a loss of $7.03 or 13.03 percent as of 2:17 PM EDT.
Showing posts with label Bunge. Show all posts
Showing posts with label Bunge. Show all posts
Thursday, July 29, 2010
Tuesday, November 4, 2008
Commodities: Corn Products International Guidance
Corn Products International Inc. (CPO), a company which refines the commodity corn for use in a number of industrial and food products, revised its yearly guidance upward today, based on a strong third quarter performance.
Original guidance was at $3.15 t $3.25 a share, now its upwardly revised to $3.40 to $3.60 a share. Analysts' expectations were for about $3.29 a share.
Corn Products International is poised to be taken over by industry giant Bunge LTD (BG) late in 2008, in response to the devastated commodities market which has driven down the share prices of the two companies. The target month was originally for November.
Corn Products International has had its share price fall by close to 50 percent, while Bunge has plunged by 69 percent, as they have a high exposure to currency-exchange rate flucuations.
Profits for the quarter increased to $88.1 million, or $1.15 a share, from last year's $51.1 million, or 66 cents a share. That growth of 72 percent.
Revenue for the quarter came in at $1.16 billion, up from $938.7 million during the same period last year; a 23 percent increase.
Similar to Archer Daniels Midland (ADM), less international commodity exposure helped them in relationship to currency exchange rates.
Original guidance was at $3.15 t $3.25 a share, now its upwardly revised to $3.40 to $3.60 a share. Analysts' expectations were for about $3.29 a share.
Corn Products International is poised to be taken over by industry giant Bunge LTD (BG) late in 2008, in response to the devastated commodities market which has driven down the share prices of the two companies. The target month was originally for November.
Corn Products International has had its share price fall by close to 50 percent, while Bunge has plunged by 69 percent, as they have a high exposure to currency-exchange rate flucuations.
Profits for the quarter increased to $88.1 million, or $1.15 a share, from last year's $51.1 million, or 66 cents a share. That growth of 72 percent.
Revenue for the quarter came in at $1.16 billion, up from $938.7 million during the same period last year; a 23 percent increase.
Similar to Archer Daniels Midland (ADM), less international commodity exposure helped them in relationship to currency exchange rates.
Commodities: Archer Daniels Midland Profit
Commodity company Archer Daniel's Midland doubles net income
At a glance it looks like Archer Daniels Midland (ADM) had a great quarter, as net income more than doubled. In reality, the company gains were primarily from lower tax rates and change in accounting concerning inventory valuations.
A couple other factors in the rise in profits were increased sales prices as well as currency exchange-rates. Because Archer Daniels has less global exposure, they were able to perform better than their chief competitor Bunge Ltd (BG), which was down 50 percent from Wall Street expectations.
Even so, for now the company will enjoy a brief surge in stock price based on exceeding expectations of 69 cents a share, excluding items. Net income surged to $1.63 a share for the quarter ending September 30, or $1.05 billion. Last year in the same period net income was $441 millon, or 68 cents a share.
Revenue for the quarter grew by 65 percent to $21.16 billion, in spite of overall volume being about the same. Most of that was due to higher commodity costs which drove the prices up. That and hitting the currency exchange-rates at the right time drove the revenue increase.
Particularly strong in the quarter was the agricultural services and oilseed processing divisions. That was partly offset by the surging costs of energy and corn during the quarter.
Operational margins grew from 7.2 percent to 8.8 percent.
Much of ADM's success stems from their corn-processing facilities, whereby they're able to take the feedstock and put into whatever product has the best profits at any given time. That and their ability to manage the currency-exchange rates well has helped them immensely.
Still, the change in inventory valuation has helped them look much stronger than they really were during the quarter, and that needs to be strongly taken into consideration when looking at its seemingly overwhelming positive profits performance.
Looking ahead, commodity based companies will rebound as demand for resources rises again. Archer Midland Daniels will rise with them.
At a glance it looks like Archer Daniels Midland (ADM) had a great quarter, as net income more than doubled. In reality, the company gains were primarily from lower tax rates and change in accounting concerning inventory valuations.
A couple other factors in the rise in profits were increased sales prices as well as currency exchange-rates. Because Archer Daniels has less global exposure, they were able to perform better than their chief competitor Bunge Ltd (BG), which was down 50 percent from Wall Street expectations.
Even so, for now the company will enjoy a brief surge in stock price based on exceeding expectations of 69 cents a share, excluding items. Net income surged to $1.63 a share for the quarter ending September 30, or $1.05 billion. Last year in the same period net income was $441 millon, or 68 cents a share.
Revenue for the quarter grew by 65 percent to $21.16 billion, in spite of overall volume being about the same. Most of that was due to higher commodity costs which drove the prices up. That and hitting the currency exchange-rates at the right time drove the revenue increase.
Particularly strong in the quarter was the agricultural services and oilseed processing divisions. That was partly offset by the surging costs of energy and corn during the quarter.
Operational margins grew from 7.2 percent to 8.8 percent.
Much of ADM's success stems from their corn-processing facilities, whereby they're able to take the feedstock and put into whatever product has the best profits at any given time. That and their ability to manage the currency-exchange rates well has helped them immensely.
Still, the change in inventory valuation has helped them look much stronger than they really were during the quarter, and that needs to be strongly taken into consideration when looking at its seemingly overwhelming positive profits performance.
Looking ahead, commodity based companies will rebound as demand for resources rises again. Archer Midland Daniels will rise with them.
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