Bunge Ltd.'s (BG) first-quarter earnings more than tripled as the company benefited from strong export demand and tight global grain supplies.

The grain merchandiser and processor has posted improved results of late on better performance in the agribusiness segment, while revenue from its soybean crushing operations in Brazil have accelerated. With global grain supplies tightening and prices at historically high levels, large merchandisers such as Bunge, with a vast network of grain storage and transportation options, are typically well positioned to meet demand from buyers around the world looking for the best deal.

Those tight grain supplies, and market volatility, will continue throughout 2011, Chairman and Chief Executive Alberto Weisser said in a statement. The high prices will prompt farmers to plant more acres, which could benefit the company's South American fertilizer business later in the year.

"The current market environment puts a premium on an efficient, flexible supply chain and excellent risk management," Weisser said. "These are some of Bunge's key strengths."

Strong export demand for grains and oilseeds in North and South America drove profits in Bunge's Agribusiness segment, which includes grain merchandising. Profits in the segment more-than-doubled to $253 million in the quarter.

Profits in its edible oils segment jumped to $34 million from $18 million, and Bunge's milling business saw profits nearly triple to $33 million.

The milling division benefited from high sales prices coupled with low raw material costs, as the White Plains, N.Y.-based company secured much of its wheat prior to a surge in wheat prices that started last summer.

While the company had missed earnings expectations in some recent quarters and earlier this year stopped giving guidance, Weisser has said the company's balance sheet is "as strong as it's ever been." Standard & Poor's Ratings Services on Wednesday raised its investment-grade outlook on the company to stable, citing reduced debt and its expectation of future earnings.

Bunge reported first-quarter profit of $232 million or $1.49 a share, up from $63 million, or 31 cents a share, a year earlier. Revenue climbed 18% to $12.2 billion, though volume decreased 8.3%.

Analysts polled by Thomson Reuters expected a per-share profit of $1.31 on revenue of $12.01 billion.

Gross margin edged down to 5.2% from 5.3%.

Shares were recently up 0.2% to $74.49 a share. The stock has gained 30% over the past 12 months.

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