(Reuters) -Bunge exceeded Wall Street expectations for third-quarter profit on Wednesday, driven by increased volumes in its grain trading and oilseed processing segments, which helped offset lower margins.
Along with rival Archer-Daniels-Midland, Bunge had expected increased profitability due to a spike in crop sales by U.S. farmers.
In July, the company forecast an improvement in processing margins and higher crop sales by farmers and raised its full-year adjusted profit forecast.
Volumes in its Agribusiness segment, its largest, rose 5.5%, while those at its Refined and Specialty Oils segment were up 2.4% compared to last year.
However, core earnings in both segments were down from the prior year, reflecting the current global margin environment, the company said.
Quarterly performance was also helped by its merchandising business, which includes grain trading and purchasing, where quarterly adjusted earnings rose by about 56% from last year to $75 million.
The upbeat results come as Bunge is waiting to close a $34-billion merger with Glencore-backed Viterra. The deal, which was announced last year and has been approved by Bunge’s shareholders, awaits regulatory approvals in key markets.
Bunge reiterated its full-year adjusted profit forecast of $9.25 per share, citing current margin environment and the loss of income due to the sale of its ownership in the sugar and bioenergy joint venture. Analysts had expected $9.43 per share.
The Chesterfield, Missouri-based company reported an adjusted profit of $2.29 per share for the quarter ended Sept. 30, compared with analysts’ estimate of $2.15 per share, according to data compiled by LSEG.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Pooja Desai)
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