Bunge says 2Q 'disappointing' and slashes guidance

WHITE PLAINS, N.Y.

Agribusiness company Bunge Ltd. said on Thursday that its second-quarter profit jumped six-fold on the sale of its fertilizer nutrients business in Brazil, but the company called its quarter "disappointing" and cut its full-year profit estimate.

Shares plunged 8 percent in electronic trading before the market opened.

Because of the weaker-than expected quarter and current market conditions, the company slashed its expectations going forward.

The company reduced its full-year profit guidance from between $5.75 to $6.25, to between $3.25 to $3.50 per share, not counting the gain on the Brazil sale.

Analysts surveyed by Thomson Reuters had been expecting $5.32 per share.

Chief Financial Officer Jacqualyn Fouse said the grain crushing business is "more challenging than expected," although the finances in the meat industry are improving and demand for edible oils and biodiesel should help business conditions in the second half of the year. It also expects competitive conditions to pressure its wheat milling margins.

Bunge said it earned $1.76 billion for the quarter that ended June 30, or $11.15 per share. That included a gain of $2.4 billion on the Brazil sale. During the same period last year, Bunge earned $293 million, or $2.28 per share.

Revenue was about flat at $10.97 billion.

Company shares fell $4.47 to $49.50 in premarket trading.