Grain trader Bunge revises full-year profit forecast after closing Viterra deal

(Reuters) -U.S. grain trader and processor Bunge on Wednesday revised its full-year adjusted profit forecast to reflect the impact of its $34 billion acquisition of grain handler Viterra in the third quarter. Shares of the company rose 4.4% in premarket trading. In July, Bunge completed its merger with Glencore-backed Viterra, two years after announcing the mega-deal. The merger with the Netherlands-based Viterra creates a global crop trading and processing giant that is poised to rival agribusiness giants Archer-Daniels-Midland and Cargill. Meanwhile, slumping grain prices, weak crop-processing margins and geopolitical tensions have eroded profitability in the sector. "Our outlook reflects an estimated result for the third quarter, as well as our current view of the margin and macro environments' potential impact on the fourth quarter," said CEO Greg Heckman. Bunge also changed its segment and volume reporting to align with the combined company's operating structure. From the third quarter, its results will include separate segments for soybean, softseed, other oilseeds, as well as another division for grain merchandising and milling. The company now expects 2025 adjusted earnings per share between $7.30 and $7.60, compared with $7.75 per share forecast earlier. Analysts estimate the company's full-year adjusted profit per share at $7.47, according to data compiled by LSEG. Bunge is scheduled to release its third-quarter results on November 5. Analysts on average were expecting the company to report a quarterly adjusted profit of $1.33 per share, according to data compiled by LSEG. (Reporting by Pooja Menon and Pranav Mathur in Bengaluru; Editing by Maju Samuel and Leroy Leo)

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