=Bunge (BG) reported earnings on Thur 28 Jul 2016 (b/o)

Bunge beats by $0.40, beats on revs; reaffirms earnings growth for FY16  :

• Reports Q2 (Jun) earnings of $0.79 per share, excluding non-recurring items, $0.40 better thanthe Capital IQ Consensus of $0.39; revenues fell 2.2% year/year to $10.54 bln vs the $9.96 bln Capital IQ Consensus. 
• "Second quarter earnings were better than expected due to strong performance in Grains and favorable soy processing mark-to-market, which pulled some earnings forward. Our Agribusiness team and footprint allowed us to manage through a period of significant volatility in both prices and margins. In Food & Ingredients, Milling results were higher in all regions, reflecting better market conditions in Brazil and operational and commercial improvements. Edible Oils grew volumes, but margins continued to be under pressure in Brazil and parts of Eastern Europe. Sugar & Bioenergy results came in as expected with an outlook for a strong second half of the year. Our performance improvement programs have delivered approximately $60 million of savings year-to-date toward the full year estimate of $125 million."
• "We continue to expect earnings growth in 2016 with returns on capital well above WACC; however, second half earnings will be weighted to the fourth quarter coinciding with Northern Hemisphere harvests."
• "We also expect the mark-to-market gains we benefitted from in the second quarter to largely reverse in the third quarter. "In Food & Ingredients, we expect 2016 segment EBIT to be $10 to $30 million higher than last year's adjusted result of $192 million, primarily driven by our operational and commercial excellence initiatives and recent acquisitions. We have lowered the range of our previous outlook to reflect the continued challenging conditions in certain Edible Oils markets. Milling is on track and should continue to benefit from a very competitive footprint. "In Fertilizer, there is no change to our outlook, and we continue to expect 2016 segment EBIT to be ~$30 million higher than last year's result of $5 million, driven by improved farmer economics in Argentina, which should result in increased purchases of crop inputs. "In Sugar & Bioenergy, we are entering the seasonally strong period of the year when ATR yields rapidly increase. Our sugarcane milling operations are trending well, and the segment remains on target to grow segment EBIT by $70 to $80 million, assuming normal weather patterns, compared to last year's adjusted loss of $22 million."