Bunge expects improved 2007 earinings
“Bunge finished 2006 on a promising note. Our team did an excellent job of delivering results and produced strong second half performances in all of our operating segments. We expect 2007 to be a year of improved earnings,” said Alberto Weisser, Bunge’s Chairman and Chief Executive Officer, when presenting Q4 and 2006 results.
“Over the past several months we have seen clear signs of improvement in the
Brazilian agribusiness and fertilizer markets. There are still some challenges,
such as the strong real, but higher commodity prices, large new corn and soybean
crops and continued government support have improved farm economics in the
country and should translate into more crop sales and larger fertilizer
purchases in 2007.
“Steps taken in late 2005 and early 2006 to
restructure our Brazilian businesses, lower costs and enhance our foreign
currency risk management should position Bunge to benefit from improving
Brazilian market conditions.
Biofuels change industry
Weisser
noted that the emerging biofuels industry is creating higher demand for their
core products and is materially influencing global supply and
demand.
Bunge is taking a focused approach to the biodiesel and corn
ethanol industries. It is making minority investments in well-positioned assets
and acting as a raw material and service supplier to biofuels
producers.
Bunge’s overall strategic focus remains on the agribusiness
and food industries, where they see great opportunity driven by strong demand
for their core products.
In 2007, the company will expand capacity at its
sunflower seed crushing plant in Martfu, Hungary to grow its presence in Eastern
Europe.
New mill in Brazil
Bunge is also to build a
new wheat mill in northeastern Brazil to improve production efficiency and
continue increasing its fertilizer mining and production operations to meet
future growth in Brazilian agriculture.
Furthermore Weisser said that
Bunge will complete its two Canadian crushing and refining capacity expansion
projects and increase its presence in the global sugar and sugar-based ethanol
markets.
Also, the oilseed processing facilities in Ukraine, Russia and
Spain and the new grain and fertilizer terminals in the port of Santos, Brazil
will come fully online during 2007.
Detailed financial information can be
found on the Bunge website or listen to the webcast on Q4 results (registration
required).
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