Grain and oilseed giant Bunge Ltd. BG.N said Monday that third-quarter earnings more than tripled, mainly on strong soybean processing profits, following an earnings jump at competitor Cargill Inc. last week. 
The results bode well for Bunge competitor Archer Daniels Midland Co. ADM.N , which was scheduled to report earnings after the close of trading, one analyst said. 
Bunge shares jumped $1.39, or 8.4 percent, to $18.00 Monday on the New York Stock Exchange. Bunge shares have ranged from $15.20 to $18.60 since the stock went public at $16 in August. 
ADM shares rose 91 cents, or 7.4 percent, to $13.14. ADM shares have declined 8 percent since the start of the year. 
White Plains, New York-based Bunge said it expects net income of $35 million to $40 million and earnings of 42 to 48 cents a share in the fourth quarter. 
The largest soybean crusher in the Americas and now the largest exporter of soybean products to China, Bunge reported net income of $57 million, or 76 cents a share, compared with net income of $17 million, or 26 cents a share, a year ago. 
"Obviously, we are very pleased with the quarter," Chief Financial Officer Bill Wells said in a conference call with analysts. "We feel that prospects are very solid for our business going forward and the trends in the industry are going to benefit Bunge as we go forward." 
Soybean crushing margins are the main factor behind Bunge's higher earnings, said Jeff Kanter, food analyst at Prudential Securities. 
"After a five-year (industry) slump, soybean crushing trends seem to be going in the right direction in a meaningful way," Kanter said. "The industry has taken a lot of capacity out and that is starting to flow to the bottom line." 
Bunge said net sales rose to $3.15 billion in the quarter from $2.7 billion a year ago. 
Income from agribusiness operations rose 165 percent to $130 million as soybean processing margins returned to historical norms in the main operating areas of Argentina, Brazil and the United States, Bunge said. 
Record harvests have kept soybean prices low and improved processing margins. About half the soybean processing plants closed last year have since reopened, but oil and meal demand remained strong to help keep cash margins high, Wells said. 
"We closed plants to maintain margins and we are ready to do that again if necessary," Wells said. 
Income from fertilizer operations declined 6 percent to $64 million and sales volume fell 14 percent from an unusually strong quarter a year ago. Bunge said it maintained prices, substantially offsetting the decline. 
Food products income from operations rose 25 percent from a year ago to $20 million as sales volume rose slightly, continuing a recovery from previous lower levels, Bunge said. 
"While there are a lot of moving parts, the company's agribusiness segment, the major piece of its business, is performing at a strong and, we believe, sustainable level," David Nelson, food analyst at Credit Suisse First Boston, said in a research note. 
Nelson retained a "buy" rating on Bunge shares and raised his fourth-quarter earnings estimate 1 cent to 42 cents a share. 
The Sept. 11 attacks on the United States pressured Bunge's edible oils and frozen bakery food service business, Wells said. Sales volume has rebounded, but it may take a few quarters to work back to previous levels, he said. 
Bunge also announced that its board declared its first quarterly cash dividend of 9.5 cents a share payable Nov. 29 to shareholders of record on Nov. 15. The company had 83.16 million common shares outstanding on Sept. 30.