Bunge Shares Slide After Quarterly Profit Miss

Bunge’s shares fell nearly 6% following a disappointing second-quarter profit report that missed Wall Street expectations. The grain trader reported an 8.4% decline in adjusted earnings in its agribusiness segment, down 55% year-over-year to $298 million, primarily due to narrower processing margins.

Global supplies of soybeans and corn are keeping crop prices near four-year lows, discouraging farmers from selling their harvests. This situation has negatively impacted Bunge’s merchandising business, where adjusted earnings plummeted 78% to $33 million.

Despite these challenges, Bunge raised its full-year adjusted profit forecast to $9.25 per share, up from $9.00, citing improved market conditions in some regions. The company posted an adjusted profit of $1.73 per share for the quarter, falling short of analysts’ estimates of $1.80.

Additionally, Bunge is progressing with its proposed $34 billion merger with Viterra, backed by Glencore, which is moving towards conditional EU antitrust approval.

Bunge Shares Slide After Quarterly Profit Miss
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