Bunge, one of the world\u2019s biggest agribusiness companies, has cited \nthe impact of the US-China trade war in lowering its income outlook for \nthe full 2018 fiscal year ending in December, according to a statement \nreleased Tuesday.<\/p>\n\n\n\n
The company rolled the revision into an announcement over the \nappointment of a new CEO, with current board member Gregory A. Heckman \nrevealed as the acting CEO with immediate effect. <\/p>\n\n\n\n
Adjusted EBIT will fall by about $90-$100 million in the Agribusiness\n segment and $60-$70 million in the Sugar and Bioenergy segment, \ncompared to the low end of its previous forecast which was $1.045 \nbillion.<\/p>\n\n\n\n
\u201cThe Agribusiness shortfall was largely due to the reduction in value\n of the company\u2019s Brazilian soybean ownership as factors related to \nChina trade and demand caused Brazilian prices to converge with US \nprices,\u201d the company said.<\/p>\n\n\n\n
\u201cThe Sugar and Bioenergy shortfall was primarily due to lower \nBrazilian ethanol prices, and a weather-related reduction in yields as a\n poor crop year came to a close.\u201d<\/p>\n\n\n\n
The New York-based agribusiness has been suffering from a global glut\n of grains and oilseeds in the past year, with its share price falling \nover 30% in the past year.<\/p>\n\n\n\n
Despite the downward revision in its EBIT outlook, Bunge\u2019s share \nprice rose 1.5% Tuesday as the company also announced Heckman had \nreplaced former CEO Soren Schroder who announced in December he was \nstepping down after five years in the role.<\/p>\n\n\n\n
\u201cI look forward to further collaboration with Kathi (Bunge\u2019s \nNon-Executive Board Chair, Kathleen Hyle), the Board and our management \nteam, focusing on ways to improve performance and create shareholder \nvalue,\u201d Heckman said in response to his appointment.<\/p>\n\n\n\n
At the end of October, Bunge – part of the industry\u2019s ABCD quartet of\n agri-trading giants – agreed to add four directors to its board after \npressure from investors to create a strategic review committee to \nexamine the company\u2019s operations.<\/p>\n\n\n\n
Last year, the company became a takeover target for Glencore and \nrival agribusiness giant Archer Daniels Midland (ADM), but ADM\u2019s CEO \ndebunked that in a January interview with newswire Reuters saying it is \nthe wrong time for \u201cmonster\u201d acquisitions.<\/p>\n\n\n\n
In the 2017 fiscal year, Bunge\u2019s turnover rose 7.3% to $45.79 billion, resulting in a total EBIT of $436 million, down nearly 61% on the year, with 60% attributed to its Agribusiness segment, and with the Sugar and Bioenergy making a loss of $12 million.<\/p>\n\n\n\n
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