Bunge Global upgraded its guidance for the full year despite reporting a worse-than-expected performance for the second quarter. U.S.-listed shares of the company fell 7% in premarket trading.
The St. Louis-based agricultural supply and transportation company posted a profit of $70 million, or 48 cents a share, from $622 million, or $4.09 a share, a year earlier. Analysts polled by FactSet expected per-share earnings of $1.78 a share.
Stripping out certain one-time items, per-share earnings were $1.73, below the $1.83 forecast by analysts according to FactSet.
Sales fell to $13.24 billion from $15.05 billion, missing the $14.30 billion expected by analysts polled by FactSet.
The company said the drop was related to lower agribusiness results, reflecting a more balanced global supply environment, and strong comparatives against the prior year in refined and specialty oils segment.
"Current market conditions have improved in some regions, but we continue to have limited visibility into the latter part of the year. The drivers of long-term demand remain strong and with our global footprint and operating flexibility, we are well-positioned to connect farmers to consumers to deliver essential food, feed and fuel to the world," Chief Executive Greg Heckman said.
Looking ahead, the group said it now expects adjusted EPS for the full year at $9.25, compared with previous guidance of around $9.00.
