Bunge maintained its knack of changing its earnings guidance – but this time with a tentative upgrade, as the agribusiness giant highlighted its prospects from strong crop trading and improving oilseed processing margins.

The sugar-to-milling group, unveiling quarterly earnings ahead of Wall Street expectations, said that it expected to "achieve or exceed" its target of earnings per share of $3.25-3.50 for the full year.

The upbeat guidance contrasted with its record at previous results statements. Bunge has twice this year downgraded its profits hopes, and did twice in 2009 too.

Upbeat signs 

Drew Burke, who has returned to interim finance director after the departure of Jacqualyn Fouse for a pharmaceuticals company, said that the group's agribusiness division "should continue its strong performance" for the rest of the year.

"The US harvest is progressing well, providing our grain merchandising operations with ample supplies to originate, store, and transport,"

"Global trade should remain strong as other geographies step in to serve demand impacted by the crop shortage in the Black Sea region."

Margins in oilseed processing had begun to improve in the northern hemisphere too, as European livestock farmers turn increasingly to soymeal as a feed, in the face of higher wheat prices.

Acquisition boost 

The comments followed a July-to-September quarter in which Bunge reported earnings down 8.6% at $212m, a decline which reflected a $97m tax fillip a year before.

The group achieved a 63% rise in operating profits, with growth particularly strong in sugar, thanks to acquisitions in Brazil.

Earnings excluding one-time effects, but including the acquisitions, came in at $2.26 per share, a rise of 40% year on year, and above Wall Street forecasts of a $1.57-per-share result.

Nonetheless, with revenues at $11.66bn, below analysts' forecasts of $12.5bn, Bunge shares proved unable to hold on to six-month highs hit in early deals. The stock closed 4.5% lower at $58.95 in New York.