ST. LOUIS, MISSOURI, US — Lower crushing margins weighed on second-quarter earnings at Bunge Global SA, sending the company’s stock price down nearly 10% to a low of $103.29 on the New York Stock Exchange on July 31. The company’s stock ultimately ended the day at $105.23, down 8.2% from the close of $114.56 on July 30.

“(We) delivered solid adjusted EBIT reflecting improved margin environment in some regions during the second half of the quarter, partially offset by more muted conditions in others,” Gregory A. Heckman, president and chief executive officer, said during a July 31 conference call with analysts. “More balanced market requires a different approach. We’re very proud of the team for their ability to adapt deliver. The rest of 2024, here the dynamics we have discussed are still in place.

“Demand is good, customers at both ends of the supply chain. And largely in the spot market, limits visibility later in the year. They’re controlling what we can amid the evolving supply demand environment in markets around the world; while tapping into the tremendous work we’ve done over the past several years to strengthen our business.”

In the second quarter ended June 30, Bunge posted net income of $70 million, equal to 48¢ per share on the common stock, down sharply from $622 million, or $4.09 per share, in the previous year’s second quarter. Adjusted earnings were $1.73 per share, down 54% from $3.72 per share in the previous year’s second quarter. Net sales in the second quarter were $13.24 billion, down 12% from $15.05 billion in the second quarter of the previous year.

In Bunge’s Agribusiness, EBIT of $138 million was down 83% from $785 million in the second quarter of 2023. When adjusting for mark-to-market timing differences and certain charges, EBIT was $298 million, down 56% from $674 million in the previous year’s second quarter. Volume increased 13% to 20.58 million tonnes from 18.26 million tonnes. Within the segment, Bunge said higher processing results in Europe soy and softseed crush were more than offset by lower results in North and South America and Asia. Meanwhile, in merchandising, lower results primarily were driven by global grains where higher volumes were more than offset by lower margins, Bunge said.

In the Refined and Specialty Oils segment, second-quarter EBIT of $185 million was down 15% from $217 million in the second quarter of the previous year. Net sales fell 13% to $3.12 billion from $3.6 billion. Volumes were 2.3 million tonnes, up from 2.21 million tonnes. Bunge said stronger results in Asia were more than offset by lower results in North and South America and Europe.

The Milling segment posted EBIT of $38 million, up 171% from $14 million. Net sales fell 18% to $401 million from $490 million. Volume was 971 million tonnes, up 15% from 844 million tonnes in the previous year’s second quarter. Higher results were primarily driven by South America reflecting higher volumes and margins, while results in the United States were in line with the prior year, Bunge said.   

Over the first six months of the fiscal year Bunge companywide posted net income of $314 million, or $2.17 per share, down 75% from $1.25 billion, or $8.24 per share, in the same time of the previous year. Six-month net sales of $26.66 billion were down 12% from $30.38 billion in the same period of the previous year.