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Under The Radar News - Monday

Posted on May 12, 2008

Bunge soaking up cash. Soybean and fertilizer giant Bunge (BG) is burning cash at a record pace. Soaring soybean and commodity prices, which should benefit Bunge (and have seen shares double over the past two years), are actually crushing the company due to its hedges, which are forcing Bunge to borrow at record rates. 2007 cash flow was -$411M, vs. -$289M in 2006 -- and it has already used another $353M in cash this year. In 2007, Bunge added $1.6B to its debt, bringing the total to $4.2B. The company's woes are complicated by the fact that soybean farmers are being squeezed by record ferti...

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