Bunge boosts 2008 guidance due to strong demand
WHITE PLAINS, N.Y. --Bunge Ltd. on Monday boosted its 2008 earnings guidance on better-than-expected performance in its agribusiness and fertilizer segments, as it announced it will buy Corn Products International Inc. in a stock deal worth about $4.4 billion.
The agricultural and food company said it is increasing its 2008 earnings-per-share forecast to $9.35 to $9.65 from a previous range of $7.10 to $7.40 per share.
Analysts polled by Thomson Financial expected earnings of $7.70 per share, on average.
The company is benefiting from "firm" customer demand despite higher commodity prices, Jacqualyn Fouse, chief financial officer, said in a statement. She also said oilseed processing margins are strong and that high international fertilizer prices are helping margins in its fertilizer business.
In a separate statement, the company said it will buy Westchester, Ill.-based Corn Products for about $56 per share. 