Bunge Q3 Earnings Beat Expectations

(Reuters) – Grain trader and processor Bunge (NYSE:BG) beat Wall Street expectations for third-quarter profit on Wednesday, supported by higher sales volumes.

Bunge, along with rival Archer-Daniels-Midland, had anticipated increased profitability due to a spike in crop sales from U.S. farmers, which provided cheaper soybean ownership and helped utilize excess manufacturing capacity. In July, Bunge forecasted an improvement in processing margins and higher crop sales from farmers, subsequently raising its full-year adjusted profit guidance.

Sales volumes improved in its Agribusiness and Refined and Specialty Oils segments. However, core earnings in both segments were lower than the previous year, reflecting the current global margin environment, according to the company.

These encouraging results come as Bunge awaits the closing of a $34-billion merger with Glencore-backed Viterra. Announced last year and approved by Bunge's shareholders, the deal is still pending regulatory approvals in key markets.

Bunge reiterated its full-year adjusted profit forecast of $9.25 per share, while analysts had anticipated $9.43 per share.

The Chesterfield, Missouri-based company reported an adjusted profit of $2.29 per share for the quarter ended Sept. 30, surpassing analysts' estimate of $2.15 per share, according to data compiled by LSEG.