Bunge Lifts 2007 Profit Outlook by $60M

The agriculture company now expects profit of $690 million to $710 million, or $5.31 per share to $5.46 per share, in 2007. Bunge had earlier expected earnings of $630 million to $650 million, or $4.86 per share to $5.02 per share. The guidance includes $20 million worth of restructuring and impairment charges and an effective tax rate of 24 percent to 28 percent.

Analysts polled by Thomson Financial expected earnings of $4.81 per share, on average.

"Looking forward, fourth quarter results should be solid as agribusiness and fertilizer continue to benefit from good industry fundamentals," Chief Financial Officer Jacqualyn Fouse said in a statement. "We expect good market fundamentals to continue into 2008."

Bunge has benefited from strong global demand for grains as well as fertilizer used in growing corn, soybeans and other crops. The company's third-quarter profit more than doubled due to improvements in its agribusiness and fertilizer profit margins.

"Guidance is ahead of both our recently revised expectations ... and the consensus expectation," Morgan Stanley analyst Vincent Andrews said in a note Thursday.

Bunge is "delivering impressive results across all of its business lines," except for edible oil products, which posted a 2 percent decline in its third-quarter gross profit margin," Andrews added.

Bunge shares rose $9.45, or 8.4 percent, to $121.50 in pre-market trading.