Bunge Limited (NYSE: BG) reported Q2 EPS of $0.50, $0.86 worse than the analyst estimate of $1.36. Revenue for the quarter came in at $10.78 billion versus the consensus estimate of $14.94 billion.

Outlook

Drew Burke, Chief Financial Officer, stated, "We expect a strong second half in Agribusiness with full year segment results exceeding $1 billion. In Oilseeds, margins are good in South America and in the U.S., solid underlying demand for soymeal and soyoil should continue to support a favorable crushing environment. While China soy crush margins have come down from the levels seen for most of the second quarter, they are well above where they were for most of last year. European sunseed crush margins should improve with the arrival of harvest; however, rapeseed margins may continue to be hampered by smaller production and low vegetable oil prices.

"In Grains, the Brazilian safrinha corn harvest is underway and with the recent devaluation of the Brazilian real, farmer selling has picked up for both corn and soybeans. Farmers in the U.S. and Black Sea have planted large crops, and based on current growing conditions should provide ample supplies to drive high asset utilizations. While global grain supply and demand should be in relative balance, the reduced production in certain Northern Hemisphere regions could provide pockets of supply dislocation opportunities.

"In Food & Ingredients, we expect improvement from first half levels. In Europe, margins should improve as new oilseed crops reset raw material costs. In the U.S., we will continue to leverage the benefits from our performance improvement programs, and in Brazil, we are taking additional cost saving measures to address current market conditions. While our Brazilian food business will likely continue to face near term challenges, we expect to see improvement as we move through the year.

"In Sugar & Bioenergy, our sugarcane crop continues to develop well with favorable weather. Based on current strong domestic demand for ethanol in Brazil, we are confident that we will finish the year profitable and free cash flow positive."

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