WHITE PLAINS, N.Y., July 24 /PRNewswire-FirstCall/ -- Bunge Limited (NYSE: BG)

    -- Total segment EBIT reached $1,078 million
    -- Agribusiness results were strong across the business
    -- Fertilizer benefited from the strong global agricultural environment
    -- The Company is increasing its full year 2008 earnings guidance by $2.25
       per share

    Financial Highlights
    (In millions, except per share data and percentages)

                              Quarter Ended             Six Months Ended
                       6/30/08  6/30/07  % Change   6/30/08  6/30/07  % Change
    Volumes (metric
     tons)              36,318   35,441      2 %     67,281   65,153       3 %
    Net sales          $14,365   $8,298     73 %    $26,834  $15,641      72 %
    Total segment
     EBIT (1,2)         $1,078     $250    331 %     $1,520     $302     403 %
      Agribusiness        $614     $143    329 %       $865     $130     565 %
      Fertilizer          $393      $71    454 %       $526     $107     392 %
      Edible Oil Products  $15       $6    150 %        $65      $24     171 %
      Milling products     $56      $30     87 %        $64      $41      56 %
    Net income (2)        $751     $168    347 %     $1,040     $182     471 %
    Earnings per common
     share-diluted (2,3) $5.45    $1.30    319 %      $7.56    $1.35     460 %

(1) Total segment earnings before interest and tax ('EBIT') is a non-GAAP financial measure. The information required by Regulation G under the Securities Exchange Act of 1934, including a reconciliation to net income, is included in the tables attached to this press release.

(2) Bunge's results included certain gains and charges that may be of interest to investors. See the Additional Financial Information section included in the tables attached to this press release for more information.

(3) See Note 1 to the consolidated statements of income attached to this press release for information on the calculation of diluted earnings per share.

Overview

Alberto Weisser, Bunge's Chairman and Chief Executive Officer stated, 'The second quarter was characterized by good demand and strong margins. Bunge's outstanding performance is a reflection of our skilled team and the value of our global and integrated network of operations.

'The quarter saw the announcement of our agreement to combine with Corn Products. The transaction, which we expect to close in the fourth quarter, will expand our operations into the highly complementary corn wet milling value chain. It will provide new opportunities for growth and a more diverse revenue stream by broadening Bunge's product portfolio and by providing access to new geographic markets.

'Over the past several years, crop production has not kept pace with overall demand, which is driven primarily by the steady trends of global population growth and rising living standards in developing economies. Current agricultural commodity prices reflect this fact, as well as the higher cost of energy. The world needs a greater supply of grains and oilseeds, and in the near term crop prices should remain at levels that provide an incentive to farmers to produce larger harvests. This should lead to strong demand for fertilizer in regions with the greatest potential for agricultural expansion, such as Brazil. At the same time, a high price, volatile environment will require disciplined use of working capital and effective risk management.

'Meeting the long-term challenge of supplying a growing world with ample supplies of affordable food will require not only greater crop production, but efficient distribution and processing. As the world consumes greater volumes of agricultural commodities and food products, the value of these services should increase. Providing them is Bunge's role, and we will continue to invest to meet that responsibility effectively and profitably.

'The billions of dollars we reinvest in our operations, whether in the form of working capital to buy farmers' crops or in new assets, such as port terminals, processing plants, fertilizer mines and milling facilities, creates economic benefits for Bunge and the food production chain in general.

'We recently announced plans for significant new investments in the Brazilian fertilizer industry. Along with Fosfertil, Bunge will invest approximately $2 billion in coming years to expand our local production of phosphate rock and intermediate fertilizer products. This will increase Bunge's internal supply and reduce Brazil's need to import fertilizer raw materials.

Agribusiness

During the quarter, oilseed processing, grain origination and distribution results benefited from higher margins around the world. Risk management strategies worked well during a volatile period.

Second quarter results included a $117 million credit resulting from a favorable ruling related to certain transactional taxes in Brazil.

Fertilizer

The excellent performance in fertilizer was due to strong farmer demand and margins. Retail volumes were higher in the quarter due to product sales for soybean and corn plantings, which historically are purchased in the second half of the year. Soybean and corn farmers accelerated purchases because of favorable agricultural commodity prices and concerns about increasing crop input costs. Fosfertil volumes were lower compared to a strong period last year when it benefited from the retail industry restocking inventories. Minority interest increased in the quarter due to higher results at Fosfertil.

Edible Oil Products

Excluding a $14 million land sale, results declined primarily due to high raw material costs in Europe. Equity in earnings of affiliates decreased in the quarter due to lower results at Saipol, our French packaged oil joint-venture.

Milling Products

Stronger results were largely due to improved margins in wheat milling.

Second quarter results included an $11 million credit resulting from a favorable ruling related to certain transactional taxes in Brazil.

Financial Costs

Interest expense increased due to higher average borrowings, mostly resulting from the higher prices of agricultural commodity inventories which drove higher average working capital levels.

Foreign exchange gains, incurred primarily on the net U.S. dollar-denominated monetary liability positions of Bunge's Brazilian and Argentine subsidiaries, were $258 million in the second quarter of 2008. These gains largely offset the negative impact of foreign exchange on the valuation of inventories included in gross profit.

Income Taxes

The effective tax rate for the six months ended June 30, 2008 was 28% compared to 25% for the same period in 2007. The increase in the effective tax rate was primarily due to increases in operating earnings in higher tax jurisdictions.

Cash Flow

Cash used by operations in the second quarter of 2008 was $130 million compared to cash used by operations in the same period last year of $594 million. For the six months ended June 30, 2008, cash used by operations was $483 million compared to cash used by operations in the same period last year of $776 million. Improved year-over-year performance, despite the significant rise in commodity prices, reflects higher earnings and actions taken to increase the efficiency of working capital management.

Outlook

Jacqualyn Fouse, Chief Financial Officer, stated, 'Looking to the second half of the year, fertilizer fundamentals should remain strong. While growth in demand for some agricultural products may soften slightly due to the sustained period of high prices, agribusiness margins should be solid. Edible oils should improve from its performance in this quarter. In consideration of this outlook, we are increasing our 2008 full-year earnings guidance from $9.35 to $9.65 per share to $11.60 to $11.90 per share. This guidance assumes an effective tax rate range of 24-28%. This fully diluted per share guidance is based on an estimated weighted average of 138 million shares outstanding, which includes assumed dilution relating to our convertible preference shares.'

Conference Call and Webcast Details

Bunge Limited's management will host a conference call at 10:00 a.m. EDT on Thursday, July 24, 2008, to discuss the company's results.

Additionally, a slide presentation to accompany the discussion of the second quarter financial results can be found in the 'Investor Information' section of our Web site, www.Bunge.com, under 'Investor Presentations'.

To listen to the conference call, please dial (877) 857-6177. If you are located outside of the United States or Canada, dial (719) 325-4769. Please dial in five to 10 minutes before the scheduled start time. When prompted, enter confirmation code 3152490. The conference call will also be available live on the company's Web site at www.Bunge.com .

To access the webcast, click the 'News and Information' link on the Bunge homepage then select 'Webcasts and Upcoming Events'. Click on the link for the 'Q2 2008 Bunge Limited Conference Call,' and follow the prompts to join the call. Please go to the Web site at least 15 minutes prior to the call to register and to download and install any necessary audio software.

For those who cannot listen to the live broadcast, a replay of the call will be available following the call and continuing through August 23, 2008. To listen to the replay, please dial (888) 203-1112, or, if located outside of the United States or Canada, dial (719) 457-0820. When prompted, enter confirmation code 3152490. A rebroadcast of the conference call will also be available on the company's Web site. To locate the rebroadcast on the Web site, click on the 'News and Information' link on the Bunge homepage then select 'Audio Archives' from the left-hand menu. Select the link for the 'Q2 2008 Bunge Limited Conference Call'. Follow the prompts to access the replay.

About Bunge Limited

Bunge Limited (www.Bunge.com, NYSE: BG) is a leading global agribusiness and food company founded in 1818 and headquartered in White Plains, New York. Bunge's over 25,000 employees in over 30 countries enhance lives by improving the global agribusiness and food production chain. The company supplies fertilizer to farmers in South America, originates, transports and processes oilseeds, grains and other agricultural commodities worldwide, produces food products for commercial customers and consumers and supplies raw materials and services to the biofuels industry.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including 'may,' 'will,' 'expect,' 'anticipate,' 'believe,' 'intend,' 'estimate,' 'continue' and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: our ability to complete, integrate and benefit from acquisitions, divestitures, joint ventures and strategic alliances; estimated demand for the commodities and other products that we sell and use in our business; industry conditions, including the cyclicality of the agribusiness industry and unpredictability of the weather; agricultural, economic and political conditions in the primary markets where we operate; and other economic, business, competitive and/or regulatory factors affecting our business generally.