CHICAGO, Feb 7 (Reuters) - Bunge Ltd (BG.N: Quote, Profile, Research), the world's largest oilseeds processor, forecast on Thursday 2008 earnings well below analysts estimates and its shares fell sharply.
The company said higher input costs could pressure margins in fertilizer and edible oils during the year while the strong real will increase costs in its Brazilian business.
For 2008, Bunge forecast earnings per share of $6.01 to $6.30 a share. Analysts on average forecast $6.60 a share, according to Reuters Estimates.
"Although the company expects strong market conditions in 2008, as in 2007, it continued to caution about higher input costs for fertilizers (sulphur) and about the potential effect on farmers from the strong Brazilian real," Pablo Zuanic, analyst at J.P. Morgan Securities said in a research note.
Bunge shares were down 6.3 percent to $115.80 in mid-morning trading on the New York Stock Exchange after earlier losing as much as 12.4 percent.
The forecast came even as Bunge posted a higher-than-expected quarterly profit, helped by higher international fertilizer prices and increased margins in its oilseeds processing business.
Bunge posted net income of $245 million, or $1.82 a share, in the fourth quarter compared with $264 million, or $2.12 a share, a year earlier.
Earnings were $2.25 a share, excluding impairment and restructuring charges, a value-added tax provision for a tax change in Brazil and the gain on the sale of investments, compared with the average analyst estimate of $1.52 a share, according to Reuters Estimates
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