Showing posts with label Bunge Ltd. Show all posts
Showing posts with label Bunge Ltd. Show all posts
Wednesday, September 26, 2012
U.S. Livestalk Companies Importing Corn from Brazil
With the price of corn in the U.S. having soared, livestock companies are looking for alternatives to feed their animals and chickens.
According to Reuters, Prestage Farms Inc. based in North Carolina, has ordered 750 tons of corn from Brazil, to be delivered by agribusiness giants Archer Daniels Midland Co (ADM) and Bunge Ltd (BG).
These imports are the largest order of its kind on record.
Senior Vice President John Prestage said, "As it got drier and drier, we starting thinking, 'We'd better start looking around.' So then we really went to work with the South American connections."
Prestage Farms raises about 170,000 sows and 15 million turkeys, which overall consume around 50 million bushels (1.27 million tons) of corn annually.
The first of approximately 15 shipments of about 50,000 tons of corn each is scheduled to arrive at the Port of Wilmington, North Carolina, next week. That will continue for a period of six months.
Also looking to import corn from Brazil for its chickens is Pilgrims Pride Corp.
Even after delivery costs Brazilian corn costs about 5 percent less than corn from the Midwest part of the U.S.
Wednesday, October 13, 2010
Verenium (NASDAQ:VRNM) Skyrockets on Bunge (NYSE:BG) Licensing Deal
News that Verenium Corporation (NASDAQ:VRNM) has licensed their lipase enzyme to Bunge Ltd. (NYSE:BG) ended with shares soaring on Tuesday, with some analysts giving their input as to how they see it playing out for Verenium.
Cantor Fitzgerald analyst Pamela Bassett said she believes Verenium could begin a move toward breaking even now that their enzyme business will become a growth vehicle.
Bassett added it is "quite possible with the growing specialty enzyme
portfolio, improved economic conditions driving sales and increasing use of Purifine, in our view. Near-term, Verenium's ability to grow its enzyme
business could provide an offset to cash used in its cellulosic ethanol
business. The company is dependent on the acceptance of its enzyme products in the marketplace and could experience delays if these new biotechnology-derived products experience customer resistance."
Cantor Fitzgerald maintains a "Buy" rating on Verenium with a price target of $9 on the company. They closed Tuesday at $3.46, gaining $0.38, or 12.34 percent.
Cantor Fitzgerald analyst Pamela Bassett said she believes Verenium could begin a move toward breaking even now that their enzyme business will become a growth vehicle.
Bassett added it is "quite possible with the growing specialty enzyme
portfolio, improved economic conditions driving sales and increasing use of Purifine, in our view. Near-term, Verenium's ability to grow its enzyme
business could provide an offset to cash used in its cellulosic ethanol
business. The company is dependent on the acceptance of its enzyme products in the marketplace and could experience delays if these new biotechnology-derived products experience customer resistance."
Cantor Fitzgerald maintains a "Buy" rating on Verenium with a price target of $9 on the company. They closed Tuesday at $3.46, gaining $0.38, or 12.34 percent.
Friday, September 24, 2010
Citigroup (NYSE:C) Convinced Bunge (NYSE:BG) Will Meet Earnings Estimates
Analysts from Citigroup (NYSE:C) say there are convinced Bunge Limited (NYSE:BG) will be able to meet its guidance for earnings per share in 2010.
Bunge's EPS estimate was a range of $3.25 to $3.50 for the year, and for 2011, Citigroup sees them performing above consensus of $5.32, estimating EPS at $5.70.
Two major reasons were given by Citi analyst David Driscoll for the conviction. He said it was "based upon the potential for $120 million ($0.60/sh) in cost savings next year along with improving global demand for oilseeds and the opportunities presented to Bunge arising from tight global wheat supplies."
The price target was upped on Bunge from $60 to $68 a share.
Bunge's EPS estimate was a range of $3.25 to $3.50 for the year, and for 2011, Citigroup sees them performing above consensus of $5.32, estimating EPS at $5.70.
Two major reasons were given by Citi analyst David Driscoll for the conviction. He said it was "based upon the potential for $120 million ($0.60/sh) in cost savings next year along with improving global demand for oilseeds and the opportunities presented to Bunge arising from tight global wheat supplies."
The price target was upped on Bunge from $60 to $68 a share.
Wednesday, September 22, 2010
Citigroup (NYSE:C) Likes Bunge (NYSE:BG) Long Term
Citigroup (NYSE:C) said over the long term they like Bunge Limited (NYSE:BG), citing the strong move in sugar prices recently.
Citigroup analyst David Driscoll said, "We like Bunge's new sugar business and think investors will warm to it as well. We believe that Bunges sugar ethanol investments in Brazil make sense long term, but currently see better investment opportunities in Food over the next 12 months highlighted by Kellogg, our top pick."
Analysts see bioenergy and sugar contributing about 22 percent, or $275 million, to the earnings of Bunge for 2011.
Citi is stronger in its earnings per share projections concerning Bunge for 2011 than consensus, seeing them reaching $5.70, while consensus has earnings at $5.32.
For 2010, Citi projects EPS of $3.25, with consensus at $3.01.
Citigroup analyst David Driscoll said, "We like Bunge's new sugar business and think investors will warm to it as well. We believe that Bunges sugar ethanol investments in Brazil make sense long term, but currently see better investment opportunities in Food over the next 12 months highlighted by Kellogg, our top pick."
Analysts see bioenergy and sugar contributing about 22 percent, or $275 million, to the earnings of Bunge for 2011.
Citi is stronger in its earnings per share projections concerning Bunge for 2011 than consensus, seeing them reaching $5.70, while consensus has earnings at $5.32.
For 2010, Citi projects EPS of $3.25, with consensus at $3.01.
Thursday, July 29, 2010
Vale (NYSE:VALE) Acquiring Copper Company to Diversify Income Streams
In a move to diversify their income streams, Vale (NYSE:VALE) announced they're acquiring Brazil copper miner Paranapanema for $1.13 billion, a 20 percent premium for the company.
This is a timely move for the miner, as iron ore prices are high, and to acquire a company strategically in a time of strength is a wise move in my estimation.
Even though they did pay a premium for Paranapanema in a time of depressed copper prices, copper prices will inevitably move up again, and when that happens, Vale SA has positioned themselves strongly to take advantage of that.
Vale paid an actual premium of 22.4 percent, measured by the average share price of Paranapanema over the last 90 days. Vale will have a 100 percent stake at the close of the deal.
With 55 percent of revenue coming from iron ore, Vale has been wanting to expand beyond that to make other metals a larger part of their revenue. Copper was only 3 percent of revenue in the first quarter for Vale.
Vale also expanded into fertilizer earlier in the year, acquiring Bunge's (NYSE:BG) domestic fertilizer assets for close to $3.8 billion.
The earnings report for Vale is scheduled after close of the markets today.
This is a timely move for the miner, as iron ore prices are high, and to acquire a company strategically in a time of strength is a wise move in my estimation.
Even though they did pay a premium for Paranapanema in a time of depressed copper prices, copper prices will inevitably move up again, and when that happens, Vale SA has positioned themselves strongly to take advantage of that.
Vale paid an actual premium of 22.4 percent, measured by the average share price of Paranapanema over the last 90 days. Vale will have a 100 percent stake at the close of the deal.
With 55 percent of revenue coming from iron ore, Vale has been wanting to expand beyond that to make other metals a larger part of their revenue. Copper was only 3 percent of revenue in the first quarter for Vale.
Vale also expanded into fertilizer earlier in the year, acquiring Bunge's (NYSE:BG) domestic fertilizer assets for close to $3.8 billion.
The earnings report for Vale is scheduled after close of the markets today.
Thursday, May 27, 2010
Bunge (NYSE:BG), Vale (NYSE:VALE) Deal Completed
The deal between Bunge Limited (NYSE:BG) and Vale (NYSE:VALE) has been completed, according to Bunge, where it sold its sold its Brazilian fertilizer nutrients assets in Brazil to Vale S.A.
Included in the deal was Bunge's stake in Fertilizantes Fosfatados S.A. (Fosfertil) of 42.3 percent.
Bunge's Chairman and CEO, Alberto Weisser, said, "We're pleased to have successfully concluded the sale of our Brazilian nutrients assets, allowing us to realize the significant value we built in this business over the years. Proceeds from the transaction provide us with the financial flexibility to redeploy capital for growth and improve our financial profile. In the near term, we'll use approximately $1.5 billion to pay down a portion of our debt and will continue to focus on other opportunities to enhance shareholder value."
The deal was worth approximately $3.5 billion.
Included in the deal was Bunge's stake in Fertilizantes Fosfatados S.A. (Fosfertil) of 42.3 percent.
Bunge's Chairman and CEO, Alberto Weisser, said, "We're pleased to have successfully concluded the sale of our Brazilian nutrients assets, allowing us to realize the significant value we built in this business over the years. Proceeds from the transaction provide us with the financial flexibility to redeploy capital for growth and improve our financial profile. In the near term, we'll use approximately $1.5 billion to pay down a portion of our debt and will continue to focus on other opportunities to enhance shareholder value."
The deal was worth approximately $3.5 billion.
Monday, November 10, 2008
Commodities: Bunge Ltd Drops Bid
Bunge Ltd drops bid for commodity company Corn Products International
Just a few days after the board of Corn Products International (CPO) withdrew its support to be acquired by Bunge Ltd. (BG), the board of Bunge decided to end their pursuit of the deal.
With the shares of both companies dropping significantly, especially Bunge's, the deal no longer was as attractive as when the offer was originally made.
Per the agreement, Corn Products will now have to pay $10 million to Bunge because of the failure of the deal to go forward.
Corn Products was desirable to Bunge because they were looking to become a key player in finished corn products. Bunge is primarily a food processor.
In the case of this deal, the weak credit market didn't play any part, as it was based totally on using stock. It was the precipitous drop of Bunge's stock which caused Corn Products board members to withdraw support.
Bunge Chairman and CEO Alberto Weisser said the deal no longer made sense to Bunge and its shareholders without the support of the Corn Products board, and while the commodity price couldn't support the deal.
Just a few days after the board of Corn Products International (CPO) withdrew its support to be acquired by Bunge Ltd. (BG), the board of Bunge decided to end their pursuit of the deal.
With the shares of both companies dropping significantly, especially Bunge's, the deal no longer was as attractive as when the offer was originally made.
Per the agreement, Corn Products will now have to pay $10 million to Bunge because of the failure of the deal to go forward.
Corn Products was desirable to Bunge because they were looking to become a key player in finished corn products. Bunge is primarily a food processor.
In the case of this deal, the weak credit market didn't play any part, as it was based totally on using stock. It was the precipitous drop of Bunge's stock which caused Corn Products board members to withdraw support.
Bunge Chairman and CEO Alberto Weisser said the deal no longer made sense to Bunge and its shareholders without the support of the Corn Products board, and while the commodity price couldn't support the deal.
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