CHICAGO (Reuters) ? Oilseed processor and fertilizer producer Bunge Ltd. yesterday reported that quarterly profit dropped a worse-than-expected 41 percent on continued struggles in South America, sending its shares down 5.6 percent.

Bermuda-registered Bunge, the world?s largest oilseed processor, expects the difficult agribusiness climate to persist in Brazil and Argentina and lowered its outlook for 2006 earnings.

Quarterly earnings fell to $58 million, or 48 cents per share, in the first quarter, compared with $98 million, or 82 cents per share, a year earlier.

Bunge?s results include charges totalling $18 million, or 15 cents a share, due to the closing of three additional oilseed processing plants. A year earlier, Bunge had a gain totalling $19 million, or 16 cents per share.

Excluding restructuring charges but including the cost of expensing stock options, Bunge?s earnings were 61 cents a share. Analysts on average were expecting earnings of 69 cents per share, according to Reuters Estimates.

The White Plains, New York-headquartered company lowered its forecast for 2006 earnings to a range of $4.08 to $4.25 per share, including 6 cents per share for stock-option expenses. Bunge previously expected its 2006 earnings to be $4.29 to $4.45 per share.

Analysts expected Bunge to earn $4.29 per share, excluding restructuring charges.

Revenue for the quarter rose three percent to $5.60 billion, compared with $5.45 billion a year earlier.

Most of Bunge?s lower earnings stem from an $8 million loss in the agribusiness division, compared with a profit of $103 million a year earlier.