WORMERVEER, Netherlands, May 13, 2020 /PRNewswire/ -- Confectionery players now have a solution at hand to achieve unprecedented levels of sugar reduction without the worry of compromising on product taste. Bunge Loders Croklaan (BLC), a world leader in edible specialty oils and fats announces the launch of Sweetolin; a patent-pending total fat system with solutions in confectionery coatings and fillings applications, enabling up to 50% sugar reduction in the final product.
Speaking about this latest innovation, Holger Riemensperger, VP Innovation and Strategy Development said, "As the company that invented Cocoa Butter Equivalents (CBEs), which are specialty fats that mimic the properties and functionality of cocoa butter in confectionery products, innovation is core to our DNA. Guided first and foremost by the goal to deliver a great tasting experience, Sweetolin is truly cutting-edge in that it is the first innovation that targets sugar reduction through fat."
"Sugar reduction is top of mind as consumers are increasingly looking for healthier choices with balanced nutritional profiles. A key priority for the industry is to formulate products that offer the same great taste and overall experience with less sugar," added Rafael Zegarra, Global Marketing Director. "With exactly this in mind, Sweetolin is designed to meet the specific needs and ambitions of our confectionery customers and will help them deliver sugar-reduced innovations without compromising on the taste and indulgence true to their brands."
Oils and fats play an instrumental role in retaining the consumer's taste experience in sugar-reduced products. Sweetolin is a total fat system that processes unique combinations of ingredients to preserve the overall taste and mouthfeel that sugar brings to a final product. The integrated formula of ingredients support each other in unlocking natural flavors for an optimal sweet taste experience. Thanks to Sweetolin, the melting property of the final product is optimized, resulting in a higher sweet perception and experience without any lingering off-taste while maintaining the texture and product performance.
"Sweetolin is the culmination of years of lipid and fats expertise combined with a cultivated understanding of our customer's challenges. It's a unique opportunity to co-create a tailor-made, ready-to-implement solution together with and for our customers. This is a specialized fat system that can be integrated seamlessly into our customers' fat processing operations with our R&D support," said Imro 't Zand, Global Innovation Lead.
Developed by Bunge Loders Croklaan, the science behind Sweetolin is backed by longstanding expertise and commitment to deliver innovative and tailor-made specialty fat solutions to global food manufacturers. In-house lipid and application expertise enable smooth and effortless co-creation with customers while our global footprint and integrated supply chain ensure continuous and uninterrupted supply.
About Bunge Loders Croklaan
Bunge Loders Croklaan is a leading global producer and supplier of sustainable plant-based specialty oils and fats for the food manufacturing industry. It operates as the global B2B edible oils business of Bunge Limited (NYSE: BG). Its products are used in a wide range of applications, from bakery and confectionery to culinary and infant nutrition. With in-depth knowledge of ingredients, applications and processes, the Bunge Loders Croklaan team closely cooperates with customers to develop tailored solutions and create innovative products to meet their business goals and differentiate them in the marketplace.
About Bunge
Bunge (www.bunge.com, NYSE: BG) is a world leader in sourcing, processing and supplying oilseed and grain products and ingredients. Founded in 1818, Bunge's expansive network feeds and fuels a growing world, creating sustainable products and opportunities for more than 70,000 farmers and the consumers they serve across the globe. The company is headquartered in St. Louis, Missouri and has almost 25,000 employees worldwide who stand behind more than 350 port terminals, oilseed processing plants, grain facilities, and food and ingredient production and packaging facilities around the world.
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SOURCE Bunge Loders Croklaan
COUNCIL BLUFFS, Iowa, Jan. 2, 2020 /PRNewswire/ -- Southwest Iowa Renewable Energy, LLC ("SIRE") and Bunge North America, LLC ("Bunge") announced that SIRE repurchased Bunge's Series B membership units effective December 31, 2019. The purchase was made under the terms of the Bunge Membership Interest Purchase Agreement and ends Bunge's 13-year ownership interest in SIRE. As part of the transaction, the two Series B directors appointed by Bunge, Andrés Martín and Brett Caplice, resigned from the SIRE board. In addition, the two companies revised commercial agreements.
Karol King, SIRE's Chairman, stated, "Since we first partnered in 2006 and in the following years, through construction and ethanol industry challenges, Bunge has been an invaluable partner for SIRE. In particular, SIRE benefitted throughout the years from commercial agreements for corn origination and products and in having two Bunge board members, who provided international agribusiness insight to our business." Mr. King continued, "SIRE is very pleased today to be in the position to go forward as an entity wholly-owned by our farmer and community members, with Bunge's ongoing support for our ethanol marketing."
SIRE accessed its existing credit facility to fund the unit purchase transaction. In addition to the stock repurchase, SIRE will assume responsibility for originating corn and selling dried distillers grains produced by the plant. Under a revised agreement, Bunge will continue to purchase all of the ethanol produced by SIRE. SIRE will also continue to lease rail cars from Bunge under existing lease agreements.
"As Bunge focuses our resources on our core businesses, selling our shares in SIRE, while maintaining a relationship, is an attractive opportunity," said Andrés Martín, North America country manager for Bunge. "Bunge is proud to have been a partner in building and operating this successful ethanol plant and we look forward to continuing to work with the SIRE team."
Mike Jerke, SIRE's CEO stated, "While conditions in the ethanol industry are difficult, with Bunge's capital support and strategic advice over the years, SIRE is and will continue to be a strong participant in the renewable energy industry and low-carbon economy. We look forward to continuing to work with Bunge on a daily basis in managing our ethanol sales and rail car fleet."
About SIRE
SIRE is located on 275 acres in Council Bluffs, Iowa, operating an ethanol plant that is permitted to produce 140 million gallons per year. SIRE began producing ethanol in February, 2009 and sells its ethanol, distillers grains, corn syrup, and corn oil in the continental United States, Mexico and the Pacific Rim.
About Bunge
Bunge (www.bunge.com, NYSE: BG) is a world leader in sourcing, processing and supplying oilseed and grain products and ingredients. Founded in 1818, Bunge's expansive network feeds and fuels a growing world, creating sustainable products and opportunities for more than 70,000 farmers and the consumers they serve across the globe. The company is headquartered in New York and has 25,000 employees worldwide who stand behind more than 360 port terminals, oilseed processing plants, grain silos, and food and ingredient production and packaging facilities around the world.
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SOURCE Southwest Iowa Renewable Energy, LLC
WHITE PLAINS, N.Y., Dec. 2, 2019 /PRNewswire/ -- Bunge Limited (NYSE:BG) and BP plc (NYSE:BP) today announced that they have completed the formation of BP Bunge Bioenergia, the Brazilian bioenergy joint venture that combines their Brazilian bioenergy and sugarcane ethanol businesses. BP Bunge Bioenergia is now the second largest operator by effective crushing capacity in the Brazilian bioethanol market.
As part of the transaction, Bunge received cash proceeds of $775 million, comprising of $700 million of non-recourse Bunge debt that was assumed by the joint venture at closing, and $75 million from BP, before customary closing adjustments. The proceeds were used to reduce outstanding indebtedness under the Company's credit facilities. The non-recourse debt was arranged by a syndicate of banks, led by Sumitomo Mitsui Banking Corporation, ABN Amro Bank N.V. and ING Bank N.V.
Itaú BBA acted as exclusive financial advisor to Bunge, and Lefosse Advogados acted as legal counsel.
About Bunge Limited
Bunge (www.bunge.com, NYSE: BG) is a world leader in sourcing, processing and supplying oilseed and grain products and ingredients. Founded in 1818, Bunge's expansive network feeds and fuels a growing world, creating sustainable products and opportunities for more than 70,000 farmers and the consumers they serve across the globe. The company is headquartered in New York and has 31,000 employees worldwide who stand behind more than 360 port terminals, oilseed processing plants, grain silos, and food and ingredient production and packaging facilities around the world.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Bunge Limited
WHITE PLAINS, N.Y., July 22, 2019 /PRNewswire/ -- Bunge Limited (NYSE:BG) ("Bunge" or "the Company"), a leader in agriculture, food and ingredients, today announced an agreement with BP plc (NYSE:BP) to form a 50:50 joint venture that will create a leading bioenergy company (the "joint venture") in Brazil, one of the world's largest fast-growing markets for biofuels.
Bunge will receive cash proceeds of $775 million in the transaction, comprising $700 million in respect of non-recourse Bunge debt to be assumed by the joint venture at closing, and $75 million from BP, subject to customary closing adjustments. The proceeds will be used to reduce outstanding indebtedness under the Company's credit facilities, resulting in a stronger balance sheet and greater financial flexibility.
The deal progresses Bunge's strategy to optimize its portfolio. Gregory A. Heckman, Bunge's Chief Executive Officer, said, "This partnership with BP represents a major portfolio optimization milestone for Bunge which allows us to reduce our current exposure to sugar milling, strengthen our balance sheet and focus on our core businesses. We have a strong, committed partner in BP, as well as flexibility in the medium and long term for further monetization, with full exit potential via an IPO or other strategic route."
The joint venture, to be called BP Bunge Bioenergia, will operate on a stand-alone basis, with a total of 11 mills located across the Southeast, North and Midwest regions of Brazil. With 32 million metric tonnes of combined crushing capacity per year, the joint venture will have the flexibility to produce a mix of ethanol and sugar. It will also generate renewable electricity - fuelled by waste biomass from the sugar cane - through its cogeneration facilities to power all its sites and sell surplus electricity to the Brazilian power grid. BP and Bunge's assets are largely complementary, with sites in five Brazilian states including three in the key region of São Paulo. The combined business will be ranked the second largest player in the industry in Brazil by effective crushing capacity.
Dev Sanyal, chief executive of BP Alternative Energy, said: "Biofuels have a key role to play in the energy transition and Brazil is leading the way by developing this industry at scale. In one step, this agreement will allow BP to significantly grow the size, efficiency and flexibility of our biofuels business in one of the world's major growth markets. With our shared commitment to safety and sustainability, the combination of BP and Bunge's assets and expertise will allow us to improve performance, develop options for growth and generate real value. BP Bunge Bioenergia will be well-placed to play a significant part in meeting Brazil's growing demand for both biofuels and biopower."
Following completion, the aim is for BP Bunge Bioenergia to generate significant operational and financial synergies, including through scale efficiencies and by applying best practices, optimised technologies and operational capabilities across all the assets of the new business.
The new business is expected to be headquartered in Sao Paulo. Mario Lindenhayn from BP will be Executive Chairman, Geovane Consul from Bunge, will be Chief Executive Officer (CEO). BP and Bunge will have equal representation on the Board of Directors.
Transaction Summary
Approvals and Closing Timeline
The transaction has been unanimously approved by the Board of Directors of Bunge. Closing of the transaction is expected in the fourth quarter of 2019, subject to customary conditions, including receipt of required regulatory approvals.
Advisors
Itaú BBA is acting as exclusive financial advisor to Bunge, and Lefosse Advogados is acting as legal counsel.
About Bunge Limited
Bunge (www.bunge.com, NYSE: BG) is a world leader in sourcing, processing and supplying oilseed and grain products and ingredients. Founded in 1818, Bunge's expansive network feeds and fuels a growing world, creating sustainable products and opportunities for more than 70,000 farmers and the consumers they serve across the globe. The company is headquartered in New York and has 31,000 employees worldwide who stand behind more than 360 port terminals, oilseed processing plants, grain silos, and food and ingredient production and packaging facilities around the world.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements include, among others, statements regarding the expected synergies and other benefits of the transaction, expected proceeds and use of proceeds from the transaction, expected accounting treatment of the transaction, prospective business performance and opportunities of the joint venture and the expected timing of completion of the transaction. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could cause actual results to differ from these forward-looking statements: the ability and timing to obtain regulatory and other approvals and satisfy other closing conditions to complete the transaction; the ability to effectively integrate the combined businesses and obtain cost savings and other synergies within expected timeframes; the ability to retain employees and management; higher than expected operating costs and potential business disruption; how customers, suppliers and employees will react to the transaction; industry conditions, including fluctuations in supply, demand and prices for sugar, ethanol and electricity; fluctuations in energy and freight costs and competitive developments; the effects of weather conditions; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; changes in government policies, laws and regulations affecting the sugar and ethanol business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Bunge Limited
WHITE PLAINS, N.Y., Aug. 6, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) today announced that Brian Thomsen, President, Agribusiness, has informed the company of his intent to retire from Bunge. Mr. Thomsen will remain with the company through the end of the year in order to ensure a smooth transition.
Mr. Thomsen joined the company in 2004, and has led Bunge's Agribusiness segment since May 2014, having previously served as Managing Director of the global Grains and Oilseeds product lines.
"Brian's leadership, business knowledge and expertise in risk management have been instrumental to Bunge over the years," said CEO Soren Schroder. "In his role as President of Agribusiness, Brian has built a strong commercial team, enhanced our global value chain integration and strengthened our global footprint of assets through various partnerships around the world. We wish Brian all the best in his retirement and thank him for his leadership and contributions to the company. I have full confidence in our Agribusiness team to execute on the plan and deliver a strong year for Bunge."
Mr. Thomsen said, "This was a personal decision for me, and it has been my honor to have served this organization over the past 14 years. I am proud of the team that we have built and all the great work they have done, and will continue to do, to advance Bunge Agribusiness."
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed; produces edible oil products for consumers and commercial customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service categories; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Bunge Limited
WHITE PLAINS, N.Y., Aug. 3, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.50 per common share. The dividend is payable on December 3, 2018 to shareholders of record on November 19, 2018.
The company also declared a quarterly cash dividend of $1.21875 per share on its 4.875% cumulative convertible perpetual preference shares, payable on December 1, 2018 to shareholders of record on November 15, 2018.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed; produces edible oil products for consumers and commercial customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service categories; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Bunge Limited
WHITE PLAINS, N.Y., Aug. 1, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG)
Quarter Ended |
Six Months Ended | ||||||||||||
US$ in millions, except per share data |
2018 |
2017 |
2018 |
2017 | |||||||||
Net income (loss) attributable to Bunge |
$ |
(12) |
$ |
81 |
$ |
(33) |
$ |
128 |
|||||
Net income (loss) per common share from continuing |
$ |
(0.20) |
$ |
0.48 |
$ |
(0.39) |
$ |
0.79 |
|||||
Net income (loss) per common share from continuing |
$ |
0.10 |
$ |
0.17 |
$ |
0.04 |
$ |
0.52 |
|||||
Total Segment EBIT (a) |
$ |
71 |
$ |
73 |
$ |
132 |
$ |
206 |
|||||
Certain gains & (charges) (b) |
(46) |
(6) |
(70) |
(12) |
|||||||||
Total Segment EBIT, adjusted (a) |
$ |
117 |
$ |
79 |
$ |
202 |
$ |
218 |
|||||
Agribusiness (c) |
$ |
118 |
$ |
18 |
$ |
170 |
$ |
127 |
|||||
Oilseeds |
$ |
140 |
$ |
2 |
$ |
106 |
$ |
94 |
|||||
Grains |
$ |
(22) |
$ |
16 |
$ |
64 |
$ |
33 |
|||||
Food & Ingredients (d) |
$ |
46 |
$ |
44 |
$ |
100 |
$ |
89 |
|||||
Sugar & Bioenergy |
$ |
(40) |
$ |
14 |
$ |
(60) |
$ |
3 |
|||||
Fertilizer |
$ |
(7) |
$ |
3 |
$ |
(8) |
$ |
(1) |
(a) |
Total Segment earnings before interest and tax ("Total Segment EBIT"); Total Segment EBIT, adjusted; net income (loss) per common share |
(b) |
Certain gains & (charges) included in Total Segment EBIT. See Additional Financial Information for detail. |
(c) |
See footnote 12 for a description of the Oilseeds and Grains businesses in Bunge's Agribusiness segment. |
(d) |
Includes Edible Oil Products and Milling Products segments. |
Soren Schroder, Bunge's Chief Executive Officer, commented, "The soy crushing environment continued to evolve positively, and second quarter results in Oilseeds were within the range of our expectations when excluding the new mark-to-market impact. In Grains, results were lower than expected in South American origination and trading & distribution, where we chose a prudent risk management approach that protected against the downside and set us up for a strong second half. In Food & Ingredients, Milling had a strong quarter, led by the anticipated improvement in Brazil market conditions. Edible Oils performance was soft due to margin pressure from a temporary surplus of soy oil resulting from the strong global crushing environment. The integration of Loders Croklaan is on track, and a strong second half is expected with momentum building into 2019."
Schroder continued, "While total company performance in the second quarter came in below our estimates, we expect a strong second half driven by another step up in performance in soy crushing as we have committed most of the open capacity for the balance of the year at very attractive margins. We are confident in our ability to deliver on our targets for the full year.
Through our Global Competitiveness Program, we continue to make progress improving the way we work together around the world. We're already seeing the benefits of our streamlined organization. The Program is tracking ahead of target and is now expected to generate $150 million in SG&A savings this year – $50 million more than our previous target. We also expect $80 million in savings over the course of the year from industrial and supply chain initiatives."
Agribusiness
Global soy crush margins were higher in all regions driven by the combination of strong underlying soymeal demand, crushing capacity constraints caused by reduced soybean production in Argentina, and increased availability of U.S. soybeans as the U.S.-China trade discussions evolved. The increase in forward margins resulted in new negative mark-to-market in the quarter of approximately $125 million related to forward soy crushing contracts. Including impacts from the first quarter, we are carrying forward approximately $185 million of mark-to-market, which will reverse as we execute on these contracts in the second half of the year. In addition to committing a significant portion of our forward soy crush capacity in the U.S. and Europe at very attractive margins, we deliberately increased inventory of Brazilian beans, which has allowed us to secure physical crush margins in Brazil and China for the balance of the year.
In Grains, results in the quarter were impacted by a temporary $24 million foreign exchange loss on hedges in Brazil that are expected to reverse in the second half of the year as contracts are executed. Excluding this impact, results in Brazil were higher than last year driven by higher volumes and margins. Origination results in Argentina were negative due to smaller crops resulting from the drought. While origination results in North America were higher than last year, they were not a material contributor to the quarter. Grain trading & distribution generated a loss in the quarter from positions taken to offset potential unfavorable movements on our bean basis exposure in Brazil, and to protect second half soy crush margins in Europe and the U.S.
Edible Oil Products
Lower earnings in the quarter were primarily driven by losses in South America, partially offset by improved performance in Europe, which benefitted from higher volumes and margins. In Brazil, lower costs were more than offset by lower packaged oil margins as abundant oil supplies from the strong soy crushing environment pressured retail prices to a seasonal low. Results in Argentina were lower as improved volumes and margins were more than offset by foreign currency impacts. The integration of Loders Croklaan is progressing well, and its results in the quarter were as expected.
Milling Products
Performance improved, driven primarily by higher results in Brazil as margins expanded with the transition to the smaller domestic wheat crop. In North America, higher results in the U.S. were partially offset by lower results in Mexico.
Sugar & Bioenergy
Lower earnings in the quarter were primarily driven by our sugarcane milling and trading & distribution operations. In milling, higher ethanol prices and lower operating costs were more than offset by lower sugar prices compared to the prior year and disruptions from the truckers' strike. Sugar trading & distribution incurred a $26 million loss in the quarter primarily due to the combination of unwinding activity in preparation for exiting the business and a $14 million bad debt charge.
During the quarter, we completed the sale of our interest in our renewable oils joint venture to our partner. We are also in late stage discussions to sell our international sugar trading & distribution business. In addition, during the quarter we made a filing in Brazil to explore the possibility of an IPO of our sugarcane milling business. Based on current market conditions in Brazil, we made the decision to postpone the process.
Fertilizer
Results in the quarter were lower due to a $13 million foreign exchange loss on imported fertilizer inventory resulting from the devaluation of the Argentine peso. An offsetting gain is expected to occur in the second half of the year as the inventories are sold. Excluding this impact, results increased from last year driven by higher volume and margins and lower costs.
Global Competitiveness Program
The Global Competitiveness Program announced in July 2017 will rationalize Bunge's cost structure and reengineer the way we operate, reducing our 2017 addressable baseline SG&A of $1.35 billion to $1.1 billion by 2020.
We are now targeting $110 million in SG&A savings in 2018, representing a total reduction in SG&A expenses of $150 million relative to our 2017 baseline. This reflects an additional $50 million of savings relative to our initial outlook for 2018.
Cash Flow
Cash used by operations in the quarter ended June 30, 2018 was approximately $3.3 billion compared to cash used of $1.3 billion in the same period last year. The year-over-year variance is primarily due to changes in inventory, reflecting an increase in soybean supplies that we will crush during the second half of the year. Trailing four-quarter adjusted funds from operations was $704 million as of the quarter ended June 30, 2018.
Income Taxes
Income taxes for the six months ended June 30, 2018 were $21 million. The prior year included $49 million of notable tax benefits.
The outlook for 2018 remains strong.
In Agribusiness, we expect our full-year EBIT results to be toward the upper end of the range of $800 million to $1.0 billion. While our expectation in Oilseeds has increased due to further strengthening of soy crush margins, we have lowered our outlook in grain origination as a result of uncertainty related to the evolving freight price situation in Brazil and expectations for lower volumes and margins in the U.S. due to reduced exports.
In Food & Ingredients, we expect results to be at the lower end of our full-year EBIT outlook range of $290 to $310 million, reflecting the softer than expected second quarter Edible Oil results in South America and weaker currencies in some of our primary markets. Second half results are expected to improve sequentially.
In Sugar & Bioenergy, based on our expectation of lower cane crush from the drought and a slower than expected increase in Brazilian ethanol prices, we are adjusting our full-year EBIT outlook to breakeven, which includes an expected loss of $20 million in our trading & distribution business.
In Fertilizer, we continue to expect EBIT of approximately $25 million.
Expected savings from the Global Competitiveness Program and industrial and supply chain initiatives are reflected in our segment EBIT ranges.
Additionally, we expect the following for 2018: a tax rate range of 18% to 22%; net interest expense in the range of $270 to $285 million; capital expenditures of approximately $650 million, which is a reduction of $50 million from our previous estimate, which will bring capex to a level below forecasted depreciation, depletion and amortization of approximately $690 million.
Bunge Limited's management will host a conference call at 8:00 a.m. EDT on Wednesday, August 1, 2018 to discuss the company's results.
Additionally, a slide presentation to accompany the discussion of results will be posted on www.bunge.com.
To listen to the call, please dial (877) 883-0383. If you are located outside the United States or Canada, dial (412) 902-6506. Please dial in five to 10 minutes before the scheduled start time and enter confirmation code 3283676. The call will also be webcast live at www.bunge.com.
To access the webcast, go to "Webcasts and presentations" in the "Investors" section of the company's website. Select "Q2 2018 Bunge Limited Conference Call" and follow the prompts. Please go to the website at least 15 minutes prior to the call to register and download any necessary audio software.
A replay of the call will be available later in the day on August 1, 2018, continuing through September 1, 2018. To listen to it, please dial (877) 344-7529 in the United States, (855) 669-9658 in Canada, or (412) 317-0088 in other locations. When prompted, enter confirmation code 10122185. A replay will also be available in "Past events" at "Webcasts and presentations" in the "Investors" section of the company's website.
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed; produces edible oil products for consumers and commercial customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service categories; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include our expectations regarding industry trends and our future financial performance, the completion and timing of acquisitions and dispositions, our assumptions and expectations for the Global Competitiveness Program and other efficiency initiatives and similar statements that are not historical facts. These forward-looking statements reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
The following table provides a summary of certain gains and charges that may be of interest to investors, including a description of these items and their effect on net income (loss) attributable to Bunge, earnings per share diluted and total segment EBIT for the quarters and six months ended June 30, 2018 and 2017.
(US$ in millions, except per share data) |
Net Income (Loss) Attributable to Bunge |
Earnings Per Share Diluted |
Total Segment EBIT (7) | |||||||||||||||
Quarter Ended June 30, |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 | ||||||||||||
Agribusiness: (1) |
$ |
(9) |
$ |
— |
$ |
(0.07) |
$ |
— |
$ |
(12) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(9) |
— |
(0.07) |
— |
(12) |
— |
||||||||||||
Edible Oil Products: (2) |
$ |
(9) |
$ |
— |
$ |
(0.06) |
$ |
— |
$ |
(8) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(2) |
— |
(0.02) |
— |
(3) |
— |
||||||||||||
Acquisition and integration costs |
(7) |
— |
(0.04) |
— |
(5) |
— |
||||||||||||
Milling Products: (3) |
$ |
(1) |
$ |
— |
$ |
— |
$ |
— |
$ |
(1) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(1) |
— |
— |
— |
(1) |
— |
||||||||||||
Sugar & Bioenergy: (4) |
$ |
(22) |
$ |
(6) |
$ |
(0.16) |
$ |
(0.04) |
$ |
(23) |
$ |
(6) |
||||||
Severance, employee benefit, and other costs |
(3) |
— |
(0.02) |
— |
(4) |
— |
||||||||||||
Sugar restructuring charges |
(3) |
(6) |
(0.03) |
(0.04) |
(3) |
(6) |
||||||||||||
Loss on disposition of equity investment |
(16) |
— |
(0.11) |
— |
(16) |
— |
||||||||||||
Fertilizer: (5) |
$ |
(1) |
$ |
— |
$ |
(0.01) |
$ |
— |
$ |
(2) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(1) |
— |
(0.01) |
— |
(2) |
— |
||||||||||||
Income Taxes: (6) |
$ |
— |
$ |
49 |
$ |
— |
$ |
0.35 |
$ |
— |
$ |
— |
||||||
Income tax benefits (charges) |
— |
49 |
— |
0.35 |
— |
— |
||||||||||||
Total |
$ |
(42) |
$ |
43 |
$ |
(0.30) |
$ |
0.31 |
$ |
(46) |
$ |
(6) |
(US$ in millions, except per share data) |
Net Income (Loss) Attributable to Bunge |
Earnings Per Share Diluted |
Total Segment EBIT (7) | |||||||||||||||
Six Months Ended June 30, |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 | ||||||||||||
Agribusiness: (1) |
$ |
(17) |
$ |
— |
$ |
(0.12) |
$ |
— |
$ |
(22) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(18) |
— |
(0.13) |
— |
(23) |
— |
||||||||||||
Gain on disposition of subsidiaries |
1 |
— |
0.01 |
— |
1 |
— |
||||||||||||
Edible Oil Products: (2) |
$ |
(14) |
$ |
— |
$ |
(0.10) |
$ |
— |
$ |
(15) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(4) |
— |
(0.03) |
— |
(5) |
— |
||||||||||||
Acquisition and integration costs |
(10) |
— |
(0.07) |
— |
(10) |
— |
||||||||||||
Milling Products: (3) |
$ |
(2) |
$ |
— |
$ |
(0.01) |
$ |
— |
$ |
(3) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(2) |
— |
(0.01) |
— |
(3) |
— |
||||||||||||
Sugar & Bioenergy: (4) |
$ |
(26) |
$ |
(12) |
$ |
(0.19) |
$ |
(0.08) |
$ |
(27) |
$ |
(12) |
||||||
Severance, employee benefit, and other costs |
(4) |
— |
(0.03) |
— |
(5) |
— |
||||||||||||
Sugar restructuring charges |
(6) |
(12) |
(0.05) |
(0.08) |
(6) |
(12) |
||||||||||||
Loss on disposition of equity investment |
(16) |
— |
(0.11) |
— |
(16) |
— |
||||||||||||
Fertilizer: (5) |
$ |
(2) |
$ |
— |
$ |
(0.01) |
$ |
— |
$ |
(3) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(2) |
— |
(0.01) |
— |
(3) |
— |
||||||||||||
Income Taxes: (6) |
$ |
— |
$ |
49 |
$ |
— |
$ |
0.35 |
$ |
— |
$ |
— |
||||||
Income tax benefits (charges) |
— |
49 |
— |
0.35 |
— |
— |
||||||||||||
Total |
$ |
(61) |
$ |
37 |
$ |
(0.43) |
$ |
0.27 |
$ |
(70) |
$ |
(12) |
Consolidated Earnings Data (Unaudited) | ||||||||||||
Quarter Ended |
Six Months Ended | |||||||||||
(US$ in millions, except per share data) |
2018 |
2017 |
2018 |
2017 | ||||||||
Net sales |
$ |
12,147 |
$ |
11,645 |
$ |
22,788 |
$ |
22,766 |
||||
Cost of goods sold |
(11,605) |
(11,290) |
(21,862) |
(21,951) |
||||||||
Gross profit |
542 |
355 |
926 |
815 |
||||||||
Selling, general and administrative expenses |
(377) |
(326) |
(721) |
(702) |
||||||||
Foreign exchange gains (losses) |
(96) |
51 |
(96) |
107 |
||||||||
Other income (expense) – net |
4 |
— |
28 |
(5) |
||||||||
EBIT attributable to noncontrolling interest (a) (8) |
(2) |
(7) |
(5) |
(9) |
||||||||
Total Segment EBIT (7) |
71 |
73 |
132 |
206 |
||||||||
Interest income |
6 |
8 |
14 |
20 |
||||||||
Interest expense |
(94) |
(62) |
(164) |
(127) |
||||||||
Income tax (expense) benefit |
(2) |
55 |
(21) |
27 |
||||||||
Noncontrolling interest share of interest and tax (a) (8) |
— |
1 |
1 |
2 |
||||||||
Income (loss) from continuing operations, net of tax |
(19) |
75 |
(38) |
128 |
||||||||
Income (loss) from discontinued operations, net of tax |
7 |
6 |
5 |
— |
||||||||
Net income (loss) attributable to Bunge (8) |
(12) |
81 |
(33) |
128 |
||||||||
Convertible preference share dividends |
(9) |
(9) |
(17) |
(17) |
||||||||
Net income (loss) available to Bunge common shareholders |
$ |
(21) |
$ |
72 |
$ |
(50) |
$ |
111 |
||||
Net income (loss) per common share diluted attributable to |
||||||||||||
Continuing operations |
$ |
(0.20) |
$ |
0.48 |
$ |
(0.39) |
$ |
0.79 |
||||
Discontinued operations |
0.05 |
0.03 |
0.03 |
— |
||||||||
Net income (loss) per common share - diluted |
$ |
(0.15) |
$ |
0.51 |
$ |
(0.36) |
$ |
0.79 |
||||
Weighted–average common shares outstanding - diluted |
141 |
141 |
141 |
141 |
(a) The line items "EBIT attributable to noncontrolling interest" and "Noncontrolling interest share of interest and tax" when |
Consolidated Segment Information (Unaudited) | ||||||||||||
Set forth below is a summary of certain earnings data and volumes by reportable segment. | ||||||||||||
Quarter Ended |
Six Months Ended | |||||||||||
(US$ in millions, except volumes) |
2018 |
2017 |
2018 |
2017 | ||||||||
Volumes (in thousands of metric tons): |
||||||||||||
Agribusiness |
37,398 |
36,173 |
73,203 |
71,196 |
||||||||
Edible Oil Products |
2,261 |
1,947 |
4,269 |
3,736 |
||||||||
Milling Products |
1,177 |
1,099 |
2,312 |
2,173 |
||||||||
Sugar & Bioenergy |
1,570 |
2,134 |
3,017 |
3,981 |
||||||||
Fertilizer |
254 |
246 |
426 |
408 |
||||||||
Net sales: |
||||||||||||
Agribusiness |
$ |
8,725 |
$ |
8,298 |
$ |
16,187 |
$ |
16,117 |
||||
Edible Oil Products |
2,325 |
1,970 |
4,474 |
3,850 |
||||||||
Milling Products |
426 |
390 |
835 |
772 |
||||||||
Sugar & Bioenergy |
582 |
906 |
1,145 |
1,894 |
||||||||
Fertilizer |
89 |
81 |
147 |
133 |
||||||||
Total |
$ |
12,147 |
$ |
11,645 |
$ |
22,788 |
$ |
22,766 |
||||
Gross profit: |
||||||||||||
Agribusiness |
$ |
354 |
$ |
156 |
$ |
557 |
$ |
434 |
||||
Edible Oil Products |
123 |
112 |
249 |
235 |
||||||||
Milling Products |
63 |
48 |
117 |
96 |
||||||||
Sugar & Bioenergy |
2 |
33 |
(2) |
42 |
||||||||
Fertilizer |
— |
6 |
5 |
8 |
||||||||
Total |
$ |
542 |
$ |
355 |
$ |
926 |
$ |
815 |
||||
Selling, general and administrative expenses: |
||||||||||||
Agribusiness |
$ |
(178) |
$ |
(176) |
$ |
(363) |
$ |
(397) |
||||
Edible Oil Products |
(114) |
(84) |
(205) |
(168) |
||||||||
Milling Products |
(33) |
(33) |
(72) |
(70) |
||||||||
Sugar & Bioenergy |
(45) |
(27) |
(69) |
(56) |
||||||||
Fertilizer |
(7) |
(6) |
(12) |
(11) |
||||||||
Total |
$ |
(377) |
$ |
(326) |
$ |
(721) |
$ |
(702) |
||||
Foreign exchange gains (losses): |
||||||||||||
Agribusiness |
$ |
(93) |
$ |
43 |
$ |
(93) |
$ |
92 |
||||
Edible Oil Products |
5 |
1 |
4 |
4 |
||||||||
Milling Products |
(2) |
(1) |
— |
(1) |
||||||||
Sugar & Bioenergy |
(4) |
4 |
(3) |
9 |
||||||||
Fertilizer |
(2) |
4 |
(4) |
3 |
||||||||
Total |
$ |
(96) |
$ |
51 |
$ |
(96) |
$ |
107 |
||||
Segment EBIT: |
||||||||||||
Agribusiness |
$ |
106 |
$ |
18 |
$ |
148 |
$ |
127 |
||||
Edible Oil Products |
11 |
28 |
39 |
64 |
||||||||
Milling Products |
26 |
16 |
43 |
25 |
||||||||
Sugar & Bioenergy |
(63) |
8 |
(87) |
(9) |
||||||||
Fertilizer |
(9) |
3 |
(11) |
(1) |
||||||||
Total Segment EBIT (7) |
$ |
71 |
$ |
73 |
$ |
132 |
$ |
206 |
Condensed Consolidated Balance Sheets (Unaudited) | ||||||
June 30, |
December 31, | |||||
(US$ in millions) |
2018 |
2017 | ||||
Assets |
||||||
Cash and cash equivalents |
$ |
221 |
$ |
601 |
||
Trade accounts receivable, net |
1,814 |
1,501 |
||||
Inventories (10) |
7,062 |
5,074 |
||||
Other current assets |
4,421 |
3,227 |
||||
Total current assets |
13,518 |
10,403 |
||||
Property, plant and equipment, net |
5,274 |
5,310 |
||||
Goodwill and other intangible assets, net |
1,466 |
838 |
||||
Investments in affiliates |
448 |
461 |
||||
Time deposits under trade structured finance program |
— |
315 |
||||
Other non-current assets |
1,418 |
1,544 |
||||
Total assets |
$ |
22,124 |
$ |
18,871 |
||
Liabilities and Equity |
||||||
Short-term debt |
$ |
2,363 |
$ |
304 |
||
Current portion of long-term debt |
625 |
15 |
||||
Letter of credit obligations under trade structured finance program |
— |
315 |
||||
Trade accounts payable |
3,138 |
3,395 |
||||
Other current liabilities |
2,917 |
2,186 |
||||
Total current liabilities |
9,043 |
6,215 |
||||
Long-term debt |
4,992 |
4,160 |
||||
Other non-current liabilities |
1,305 |
1,139 |
||||
Total liabilities |
15,340 |
11,514 |
||||
Redeemable noncontrolling interest |
441 |
— |
||||
Total equity |
6,343 |
7,357 |
||||
Total liabilities, redeemable noncontrolling interest and equity |
$ |
22,124 |
$ |
18,871 |
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||
Six Months Ended June 30, | ||||||
(US$ in millions) |
2018 |
2017 | ||||
Operating Activities |
||||||
Net income (loss) (8) |
$ |
(29) |
$ |
135 |
||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating |
||||||
Foreign exchange (gain) loss on net debt |
171 |
(33) |
||||
Depreciation, depletion and amortization |
304 |
282 |
||||
Deferred income tax (benefit) |
(50) |
(2) |
||||
Other, net |
53 |
43 |
||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
||||||
Trade accounts receivable |
(245) |
(93) |
||||
Inventories |
(2,202) |
(532) |
||||
Secured advances to suppliers |
(308) |
125 |
||||
Trade accounts payable and accrued liabilities |
(48) |
98 |
||||
Advances on sales |
(80) |
(149) |
||||
Net unrealized gain (loss) on derivative contracts |
262 |
(36) |
||||
Margin deposits |
(217) |
(45) |
||||
Marketable securities |
(56) |
(146) |
||||
Beneficial interest in securitized trade receivables (11) |
(863) |
(841) |
||||
Other, net |
(30) |
(115) |
||||
Cash provided by (used for) operating activities |
(3,338) |
(1,309) |
||||
Investing Activities |
||||||
Payments made for capital expenditures |
(220) |
(342) |
||||
Acquisitions of businesses (net of cash acquired) |
(968) |
(394) |
||||
Proceeds from investments |
945 |
119 |
||||
Payments for investments |
(1,082) |
(160) |
||||
Proceeds from beneficial interest in securitized trade receivables (11) |
853 |
832 |
||||
Payments for investments in affiliates |
— |
(68) |
||||
Other, net |
44 |
8 |
||||
Cash provided by (used for) investing activities |
(428) |
(5) |
||||
Financing Activities |
||||||
Net borrowings (repayments) of short-term debt |
2,071 |
1,001 |
||||
Net proceeds (repayments) of long-term debt |
1,496 |
19 |
||||
Proceeds from the exercise of options for common shares |
11 |
57 |
||||
Dividends paid |
(147) |
(135) |
||||
Other, net |
(13) |
(6) |
||||
Cash provided by (used for) financing activities |
3,418 |
936 |
||||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash |
(32) |
21 |
||||
Net increase (decrease) in cash and cash equivalents, and restricted cash |
(380) |
(357) |
||||
Cash and cash equivalents, and restricted cash - beginning of period |
605 |
938 |
||||
Cash and cash equivalents, and restricted cash - end of period |
$ |
225 |
$ |
581 |
This earnings release contains certain "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934. Bunge has reconciled these non-GAAP financial measures to the most directly comparable U.S. GAAP measures below. These measures may not be comparable to similarly titled measures used by other companies.
Total Segment EBIT and Total Segment EBIT, adjusted
Bunge uses total segment earnings before interest and taxes ("Total Segment EBIT") to evaluate Bunge's operating performance. Total Segment EBIT excludes EBIT attributable to noncontrolling interests and is the aggregate of each of our five reportable segments' earnings before interest and taxes. Total Segment EBIT, adjusted, is calculated by excluding certain gains and charges as described above in "Additional Financial Information" from Total Segment EBIT. Total Segment EBIT and Total Segment EBIT, adjusted are non-GAAP financial measures and are not intended to replace net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Bunge's management believes these non-GAAP measures are a useful measure of its reportable segments' operating profitability, since the measures allow for an evaluation of segment performance without regard to their financing methods or capital structure. For this reason, operating performance measures such as these non-GAAP measures are widely used by analysts and investors in Bunge's industries. These non-GAAP measures are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to net income (loss) or any other measure of consolidated operating results under U.S. GAAP.
Below is a reconciliation of Net income attributable to Bunge to Total Segment EBIT, adjusted:
Quarter Ended |
Six Months Ended | |||||||||||
(US$ in millions) |
2018 |
2017 |
2018 |
2017 | ||||||||
Net income (loss) attributable to Bunge |
$ |
(12) |
$ |
81 |
$ |
(33) |
$ |
128 |
||||
Interest income |
(6) |
(8) |
(14) |
(20) |
||||||||
Interest expense |
94 |
62 |
164 |
127 |
||||||||
Income tax expense (benefit) |
2 |
(55) |
21 |
(27) |
||||||||
(Income) loss from discontinued operations, net of tax |
(7) |
(6) |
(5) |
— |
||||||||
Noncontrolling interest share of interest and tax |
— |
(1) |
(1) |
(2) |
||||||||
Total Segment EBIT |
71 |
73 |
132 |
206 |
||||||||
Certain (gains) and charges |
46 |
6 |
70 |
12 |
||||||||
Total Segment EBIT, adjusted |
$ |
117 |
$ |
79 |
$ |
202 |
$ |
218 |
Net income (loss) per common share from continuing operations-diluted, adjusted, excludes certain gains and charges and discontinued operations and is a non-GAAP financial measure. This measure is not a measure of earnings per common share-diluted, the most directly comparable U.S. GAAP financial measure. It should not be considered as an alternative to earnings per share-diluted or any other measure of consolidated operating results under U.S. GAAP. Net income (loss) per common share from continuing operations-diluted, adjusted is a useful measure of the Company's profitability.
Below is a reconciliation of Net income attributable to Bunge to Net income (loss) - adjusted (excluding certain gains & charges and discontinued operations).
Quarter Ended |
Six Months Ended | ||||||||||||||
(US$ in millions, except per share data) |
2018 |
2017 |
2018 |
2017 | |||||||||||
Net Income (loss) attributable to Bunge |
$ |
(12) |
$ |
81 |
$ |
(33) |
$ |
128 |
|||||||
Adjusted for certain gains and charges: |
|||||||||||||||
Severance, employee benefit, and other costs |
16 |
— |
30 |
— |
|||||||||||
Sugar restructuring charges |
3 |
6 |
6 |
12 |
|||||||||||
Acquisition and integration costs |
7 |
— |
10 |
— |
|||||||||||
(Gain) loss, net on disposition of equity interests and subsidiaries |
16 |
— |
15 |
— |
|||||||||||
Interest and income tax charges (benefits) |
— |
(49) |
— |
(49) |
|||||||||||
Adjusted Net Income attributable to Bunge |
30 |
38 |
28 |
91 |
|||||||||||
Discontinued operations |
(7) |
(6) |
(5) |
— |
|||||||||||
Convertible preference shares dividends |
(9) |
(9) |
(17) |
(17) |
|||||||||||
Net income (loss) - adjusted (excluding certain gains & charges |
$ |
14 |
$ |
23 |
$ |
6 |
$ |
74 |
|||||||
Weighted-average common shares outstanding - diluted |
141 |
141 |
141 |
141 |
|||||||||||
Net income (loss) per common share - diluted, adjusted |
$ |
0.10 |
$ |
0.17 |
$ |
0.04 |
$ |
0.52 |
Below is a reconciliation of Net income (loss) per common share from continuing operations - diluted, adjusted (excluding certain gains & charges and discontinued operations) to Net income (loss) per common share–diluted:
Quarter Ended |
Six Months Ended | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
Continuing operations: |
|||||||||||||||
Net income (loss) per common share - diluted adjusted |
$ |
0.10 |
$ |
0.17 |
$ |
0.04 |
$ |
0.52 |
|||||||
Certain gains & charges (see Additional Financial Information |
(0.30) |
0.31 |
(0.43) |
0.27 |
|||||||||||
Net income (loss) per common share - continuing operations |
(0.20) |
0.48 |
(0.39) |
0.79 |
|||||||||||
Discontinued operations: |
0.05 |
0.03 |
0.03 |
— |
|||||||||||
Net income (loss) per common share - diluted |
$ |
(0.15) |
$ |
0.51 |
$ |
(0.36) |
$ |
0.79 |
The following table summarizes the costs incurred as part of the Global Competitiveness Program ("GCP") and other associated cost reduction and strategic initiatives.
Quarter Ended June 30, 2018 |
Six Months Ended June 30, 2018 | ||||||||||||||||||
Severance |
Other Costs |
Total Costs |
Severance |
Other Costs |
Total Costs | ||||||||||||||
Global Competitiveness Program: |
|||||||||||||||||||
Agribusiness |
$ |
3 |
$ |
6 |
$ |
9 |
$ |
7 |
$ |
12 |
$ |
19 |
|||||||
Edible Oil Products |
1 |
2 |
3 |
2 |
3 |
5 |
|||||||||||||
Milling Products |
— |
1 |
1 |
— |
2 |
2 |
|||||||||||||
Sugar & Bioenergy |
2 |
2 |
4 |
2 |
3 |
5 |
|||||||||||||
Fertilizer |
— |
1 |
1 |
— |
1 |
1 |
|||||||||||||
Costs included in Selling, general and |
6 |
12 |
18 |
$ |
11 |
$ |
21 |
$ |
32 |
||||||||||
Other associated cost reduction and |
|||||||||||||||||||
Costs included in Cost of goods sold |
4 |
— |
4 |
$ |
6 |
$ |
— |
$ |
6 |
||||||||||
Total GCP and Other costs |
$ |
10 |
$ |
12 |
$ |
22 |
$ |
17 |
$ |
21 |
$ |
38 |
2017 baseline total SG&A was $1.45 billion. There was $100 million of SG&A determined not to be addressable through the GCP, leaving 2017 addressable baseline SG&A of $1.35 billion ("Addressable Baseline"). The items that are not addressable by the GCP relate to costs other than direct spending and personnel costs, such as amortization, bad debt charges and recoveries and financing fees and taxes.
GCP savings are determined by comparing Adjusted Actual Addressable SG&A to the Addressable Baseline. Adjusted Actual Addressable SG&A is equal to the total reported SG&A minus the items not addressable by the GCP, plus or minus items such as:
We expect to reduce Actual Addressable SG&A from the Addressable Baseline level of $1.35 billion to $1.1 billion by 2020, achieving $250 million in run-rate savings by the end of 2019.
As previously announced, the Company has developed a high-level estimate of $200 - $300 million for the total pre-tax costs expected to be incurred in connection with the Global Competitiveness Program.
(1) Agribusiness: | |
2018 second quarter EBIT includes charges related to the GCP of $(9) million [$(3) million for severance and other employee benefit costs and $(6) million for other program costs], all of which was included in Selling, general and administrative expenses. 2018 second quarter EBIT also includes $(3) million for severance and other employee benefit costs related to other industrial initiatives recorded in Cost of goods sold. | |
EBIT for the six months ended June 30, 2018 includes charges related to the GCP of $(19) million [$(7) million for severance and other employee benefit costs and $(12) million for other program costs], all of which was included in Selling, general and administrative expenses. EBIT for the six months ended June 30, 2018 also includes $(4) million for severance and other employee benefit costs related to other industrial initiatives recorded in Cost of goods sold and a $1 million gain on the sale of a subsidiary. | |
(2) Edible Oil Products: | |
2018 second quarter EBIT includes charges related to the GCP of $(3) million [$(1) million for severance and other employee benefit costs and $(2) million for other program costs], all of which was included in Selling, general and administrative expenses. Additionally, $(5) million of acquisition and integration costs related to the acquisition of IOI Loders Croklaan were incurred, all of which were included within Selling, general and administrative expenses. | |
EBIT for the six months ended June 30, 2018 includes charges related to the GCP of $(5) million [$(2) million for severance and other employee benefit costs and $(3) million for other program costs], all of which was included in Selling, general and administrative expenses. Additionally, $(10) million of acquisition and integration costs related to the acquisition of IOI Loders Croklaan were incurred, all of which were included within Selling, general and administrative expenses. | |
(3) Milling Products: | |
2018 second quarter EBIT includes charges related to the GCP of $(1) million for other program costs, all of which was included in Selling, general and administrative expenses. | |
EBIT for the six months ended June 30, 2018 includes charges related to the GCP of $(2) million for other program costs, all of which was included in Selling, general and administrative expenses. EBIT for the six months ended June 30, 2018 also includes $(1) million for severance and other employee benefit costs related to other industrial initiatives recorded in Cost of goods sold. | |
(4) Sugar & Bioenergy: | |
2018 second quarter EBIT includes charges related to the GCP of $(4) million [$(2) million for severance and other employee benefit costs and $(2) million for other program costs], all of which was included in Selling, general and administrative expenses. 2018 second quarter EBIT also includes Sugar restructuring charges of $(3) million recorded in Cost of goods sold and a loss of $(16) million on the sale of an equity investment in Brazil, recorded in Other income (expense) - net. | |
EBIT for the six months ended June 30, 2018 includes charges related to the GCP of $(5) million [$(2) million for severance and other employee benefit costs and $(3) million for other program costs], all of which was included in Selling, general and administrative expenses. EBIT for the six months ended June 30, 2018 also includes Sugar restructuring charges of $(6) million recorded in Cost of goods sold and a loss of $(16) million on the sale of an equity investment in Brazil, recorded in Other income (expense) - net. | |
EBIT for the three and six months ended June 30, 2017 includes Sugar restructuring charges of $(6) million and $(12) million, respectively, recorded in Cost of goods sold. | |
(5) Fertilizer: | |
2018 second quarter EBIT includes charges related to the GCP of $(1) million for other program costs, all of which was included in Selling, general and administrative expenses. 2018 second quarter EBIT also includes $(1) million for severance and other employee benefit costs related to other industrial initiatives recorded in Cost of goods sold. | |
EBIT for the six months ended June 30, 2018 includes charges related to the GCP of $(1) million for other program costs, all of which was included in Selling, general and administrative expenses. EBIT for the six months ended June 30, 2018 also includes $(2) million for severance and other employee benefit costs related to other industrial initiatives recorded in Cost of goods sold. | |
(6) Income Taxes: | |
In the three and six months ended June 30, 2017, income tax benefits (charges) include total benefits of $49 million, $32 million for the favorable resolution of an uncertain tax position in Asia and a $17 million as a result of a tax election in South America. | |
Notes to Financial Tables: | |
(7) |
See Definition and Reconciliation of Non-GAAP Measures. |
(8) |
A reconciliation of Net income (loss) attributable to Bunge to Net income (loss) is as follows: |
Six Months Ended June 30, | |||||||
2018 |
2017 | ||||||
Net income (loss) attributable to Bunge |
$ |
(33) |
$ |
128 |
|||
EBIT attributable to noncontrolling interest |
5 |
9 |
|||||
Noncontrolling interest share of interest and tax |
(1) |
(2) |
|||||
Net income (loss) |
$ |
(29) |
$ |
135 |
|||
(9) |
Approximately 7 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and six months ended June 30, 2018. Additionally, approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares were not dilutive and not included in the weighted-average number of shares outstanding for the three and six months ended June 30, 2018. |
Approximately 3 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and six months ended June 30, 2017. Additionally, approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares were not dilutive and not included in the weighted-average number of shares outstanding for the three and six months ended June 30, 2017. | |
(10) |
Includes readily marketable inventories of $5,531 million and $4,056 million at June 30, 2018 and December 31, 2017, respectively. Of these amounts, $4,436 million and $2,767 million, respectively, can be attributable to merchandising activities. |
(11) |
In accordance with new cash flow presentation requirements under U.S. Generally Accepted Accounting Principles, cash receipts from payments on beneficial interests in securitized trade receivables should be classified as cash inflows from investing activities. As such, we have made necessary changes to our cash flow presentation in current and prior periods presented, which resulted in an increase in cash inflows from investing activities and a corresponding decrease to cash from operating activities. |
(12) |
The Oilseed business included in our Agribusiness segment consists of our global activities related to the crushing of oilseeds (including soybeans, canola, rapeseed and sunflower seed) into protein meals and vegetable oils; the trading and distribution of oilseeds and oilseed products; and biodiesel production, which is primarily conducted through joint ventures. |
The Grains business included in our Agribusiness segment consists primarily of our global grain origination activities, which principally conduct the purchasing, cleaning, drying, storing and handling of corn, wheat, barley, rice and oilseeds at our network of grain elevators; the logistical services for distribution of these commodities to our customer markets through our port terminals and transportation assets (including trucks, railcars, barges and ocean vessels); and financial services and activities for customers from whom we purchase commodities and other third parties. |
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SOURCE Bunge Limited
WHITE PLAINS, N.Y., July 12, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) today announced that Mark Zenuk has been appointed to its Board of Directors, effective July 17, 2018.
Mr. Zenuk, 51, has served as Managing Partner of Tillridge Global Agribusiness Partners, an agribusiness private equity firm, since 2016. Prior to Tillridge, he was a Managing Director at NGP Energy Capital Management ("NGP"), where he led NGP's agribusiness investment platform from 2010 to 2016. Before joining NGP, he served in many domestic and international executive leadership roles with Archer Daniels Midland Company ("ADM"), having most recently led ADM's oilseed business unit. Before joining ADM in 1999, he served as General Manager of the Commodity Marketing Group for the Saskatchewan Wheat Pool and Marketing Manager for the Canadian Wheat Board.
"We're pleased to welcome Mark to our Board of Directors," said L. Patrick Lupo, Chairman, Bunge Limited. "His deep experience and understanding of global agribusiness markets, along with his operating expertise and strong commitment to shareholder value, make him an ideal addition to the Board. We believe his industry perspectives and business acumen will be extremely valuable as Bunge continues to execute its strategic priorities."
Mr. Zenuk holds a B.S. in Agricultural Economics from the University of Saskatchewan.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Bunge Limited
WHITE PLAINS, N.Y., May 23, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) today announced that its Board of Directors has approved an increase in the company's regular quarterly common share cash dividend, from $0.46 to $0.50 per share. The new dividend is payable on September 5, 2018 to shareholders of record on August 22, 2018.
The company also declared a quarterly cash dividend of $1.21875 per share on its 4.875% cumulative convertible perpetual preference shares, payable on September 1, 2018 to shareholders of record on August 15, 2018.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed; produces edible oil products for consumers and commercial customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service categories; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Bunge Limited
WHITE PLAINS, N.Y., May 15, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) ("Bunge") announced the filing today of a registration request with the Brazilian Securities Commission for a potential initial public offering ("IPO") of Bunge Açúcar & Bionergia, Bunge's sugar milling business in Brazil.
Bunge has prepared the business to operate as a stand-alone company and recently obtained debt financing for the business. Today's filing further progresses Bunge's previously stated intentions to focus on its Agribusiness and Food & Ingredients businesses and enables the company to move forward with an IPO, subject to market conditions and valuation. Following the execution of an IPO, Bunge would be the majority shareholder, enabling it to participate in future value creation driven by the stand-alone company's growth and cyclical improvement in global sugar market conditions.
Bunge Açúcar & Bionergia owns and operates eight mills located across the Southeast, North and Midwest regions of Brazil. With 22 million metric tons of crushing capacity per year, it has the flexibility to produce a mix of ethanol and sugar, and generates renewable electricity through its cogeneration facilities to self-sufficiently power all of its mills and sell surplus electricity to the Brazilian power grid.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. The offer and sale of Bunge Açúcar & Bionergia's shares in Brazil is subject to prior registration of the offering and issuer with the Brazilian Securities Commission. The offer and sale of Bunge Açúcar & Bionergia's shares has not been and will not be registered under the U.S. Securities Act or under the securities laws of any U.S. state.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed; produces edible oil products for consumers and commercial customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service categories; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, among others, statements relating to the proposed initial public offering of the sugar milling business, its potential structure, benefits and completion. These forward-looking statements reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could cause actual results to differ from these forward-looking statements: obtaining or the timing of obtaining any required regulatory approvals or other conditions to the transaction, changes in laws, economic and financial market conditions, industry conditions in the sugar milling business and the global sugar market, risks associated with any disruption to Bunge's business due to execution of the proposed transaction, significant unanticipated transaction costs and/or unknown liabilities, changes in capital market conditions, future opportunities that we may determine present greater potential to increase shareholder value; the ability of the sugar milling business to operate as a public company following the transaction; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Bunge Limited
WHITE PLAINS, N.Y., May 10, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) will hold its Annual General Meeting of Shareholders on Thursday, May 24, 2018, at 10:00 a.m. at the Sofitel Hotel, 45 West 44th Street, New York, New York. The record date for determining shareholders entitled to notice of, and to vote at, the Annual General Meeting and at any subsequent adjournments or postponements of the meeting was March 29, 2018.
For those unable to attend in person, the slide presentation given by Soren Schroder, Bunge's Chief Executive Officer, will be available at or prior to 10:00 a.m. on May 24, 2018 on the company's website, www.bunge.com.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed; produces edible oil products for consumers and commercial customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service categories; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Bunge Limited
WHITE PLAINS, N.Y., May 2, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG)
Quarter Ended | ||||||
US$ in millions, except per share data |
2018 |
2017 | ||||
Net income (loss) attributable to Bunge |
$ |
(21) |
$ |
47 |
||
Net income (loss) per common share from continuing operations-diluted |
$ |
(0.20) |
$ |
0.31 |
||
Net income (loss) per common share from continuing operations-diluted, |
$ |
(0.06) |
$ |
0.35 |
||
Total Segment EBIT (a) |
$ |
61 |
$ |
133 |
||
Certain gains & (charges) (b) |
(24) |
(6) |
||||
Total Segment EBIT, adjusted (a) |
$ |
85 |
$ |
139 |
||
Agribusiness (c) |
$ |
52 |
$ |
109 |
||
Oilseeds |
$ |
(34) |
$ |
92 |
||
Grains |
$ |
86 |
$ |
17 |
||
Food & Ingredients (d) |
$ |
54 |
$ |
45 |
||
Sugar & Bioenergy |
$ |
(20) |
$ |
(11) |
||
Fertilizer |
$ |
(1) |
$ |
(4) |
||
(a) Total Segment earnings before interest and tax ("Total Segment EBIT"); Total Segment EBIT, adjusted; net income (loss) per common share | ||||||
(b) Certain gains & (charges) included in Total Segment EBIT. See Additional Financial Information for detail. | ||||||
(c) See footnote 10 of Additional Financial Information for a description of the Oilseeds and Grains businesses in Bunge's Agribusiness | ||||||
(d) Includes Edible Oil Products and Milling Products segments. |
Soren Schroder, Bunge's Chief Executive Officer, commented, "During the first quarter, we saw a dramatic change in the global soy crush market environment as margins expanded significantly from 2017 levels. Our teams managed the rapidly changing environment well and positioned the company for a strong performance for the balance of the year. In times like these, when trade flows and capacities shift among regions, the value of our global footprint and capabilities are demonstrated. In Food & Ingredients, results were better than expected with improvement in most regions. Looking ahead, we expect significant growth in Company earnings and returns in 2018.
Schroder continued, "We closed on Loders Croklaan during the quarter, which now positions us as a global leader in B2B oils, and when fully integrated will nearly double the size of our Edible Oils business. We also strengthened our milling footprint in the U.S. with the acquisition of two corn masa mills. These investments increase results from value added activities closer towards our targeted level of 35 percent. In addition, we continue to progress towards the separation of our Brazilian sugarcane milling business. We have recently secured debt financing for the business and are now in a position where the business could operate on a stand-alone basis.
"We also made solid progress on our cost objectives. Our Global Competitiveness Program is on track towards our target of $100 million this year. And, over the course of the year, we expect an additional $80 million of savings from industrial and supply chain initiatives."
Agribusiness
The agribusiness environment improved dramatically from conditions seen last year with reduced soybean supplies in Argentina and tightening global grain supplies, leading to increased volatility and improved margins, especially in soy crushing.
In Grains, higher results were driven by global trading & distribution, which benefitted from increased margins and effective risk management. Origination results were comparable to last year as improved performance in Brazil, which benefitted from increased farmer commercialization as local soy prices rose, offset lower results in North America and Argentina.
In Oilseeds, global soy crush margins significantly improved over the course of the quarter driven by the combination of strong underlying soymeal demand and crushing capacity constraints caused by reduced soybean production in Argentina. The increase in forward margins resulted in negative mark-to-market of $120 million related to forward oilseed crushing contracts. As we execute on these contracts during the balance of the year, we expect this impact will be offset by higher margins, which is embedded in our revised outlook.
Edible Oil Products
Results were higher in all regions with the exception of South America. In Europe, improved performance was driven by higher volumes and margins, reflecting increased value-added sales from recent acquisitions, as well as increased demand for margarine which benefitted from the rise in European butter prices. In North America, improved results reflected higher margins and lower costs, where the business is seeing the positive effects of cost improvement and restructuring initiatives. In Asia, results were higher in both India and China. In Brazil, however, lower costs were more than offset by lower margins as abundant oil supplies from the strong soy crushing environment pressured retail prices.
Milling Products
Higher results in North America were the primary driver of improved performance in the quarter. In Mexico, results benefitted from double digit volume growth, which was supported by a new sales force structure, and lower costs. Improved results in the U.S. were due to higher margins. Results in Brazil were slightly higher than last year, as higher volume and lower costs more than offset lower margins. We are starting to see signs of improvement as the Brazilian market transitions to a significantly smaller wheat crop this year.
Sugar & Bioenergy
The first quarter is the inter-harvest period in Brazil when sugarcane mills in the Center-South region typically do not operate for most of the quarter and are selling sugar and ethanol inventories from the previous sugarcane harvest.
Results were lower than last year as higher average ethanol prices were more than offset by lower sugar prices and volumes. Volumes were negatively impacted by carrying over a low inventory balance from 2017 into the intercrop period. Trading & distribution results in the quarter were higher than last year.
In addition to progressing towards the separation of our sugarcane milling business, we recently signed a share purchase agreement to sell our interest in our renewable oils joint venture to our partner, and are in the process of exiting our global sugar trading operation.
Fertilizer
Improved results in the quarter were primarily driven by higher margins and lower costs, reflecting in part the restructuring of our Argentine nitrogen fertilizer plant.
Global Competitiveness Program
The Global Competitiveness Program announced in July 2017 is expected to rationalize Bunge's cost structure and reengineer the way we operate, reducing our 2017 addressable baseline SG&A of $1.35 billion to $1.1 billion by 2020.
We reduced SG&A by $40 million in 2017 and expect to reduce it by an additional $60 million this year, totaling a $100 million reduction in 2018 as compared to the 2017 baseline. We have incurred a total of $69 million of program-related costs since inception, including $14 million this quarter.
Cash Flow
Cash used by operations in the quarter ended March 31, 2018 was approximately $1.5 billion compared to cash used of $603 million in the same period last year. The year-over-year variance is primarily due to changes in inventory, reflecting the improved agribusiness environment. Trailing four-quarter adjusted funds from operations was $811 million as of the quarter ended March 31, 2018.
Income Taxes
Income taxes for the quarter ended March 31, 2018 were $19 million.
We expect 2018 to be a year of strong earnings growth, particularly in Agribusiness.
In Agribusiness, we are increasing our full-year EBIT outlook range to $800 million to $1.0 billion, primarily based on improved soy crush margins.
In Food & Ingredients, we are increasing our full-year EBIT outlook range to $290 to $310 million to account for the addition of our 70 percent ownership stake in Loders Croklaan, which we acquired in early March. Segment results are expected to improve sequentially.
In Sugar & Bioenergy, based on current sugar prices, we are reducing our full-year EBIT outlook range to $40 to $60 million. Results are expected to be seasonally weak until the second half of the year.
In Fertilizer, we continue to expect EBIT of approximately $25 million.
Savings from the Global Competitiveness Program and industrial and supply chain initiatives are reflected in our segment EBIT ranges.
Additionally, we expect the following for 2018, which incorporates Loders Croklaan: a tax rate range of 18% to 22%; net interest expense in the range of $255 to $275 million; capital expenditures of approximately $700 million, of which approximately $150 million is related to sugarcane milling; and depreciation, depletion and amortization of approximately $690 million.
Bunge Limited's management will host a conference call at 8:00 a.m. EDT on Wednesday, May 2, 2018 to discuss the company's results.
Additionally, a slide presentation to accompany the discussion of results will be posted on www.bunge.com.
To listen to the call, please dial (877) 883-0383. If you are located outside the United States or Canada, dial (412) 902-6506. Please dial in five to 10 minutes before the scheduled start time and ask to join the Bunge Limited call. The call will also be webcast live at www.bunge.com.
To access the webcast, go to "Webcasts and presentations" in the "Investors" section of the company's website. Select "Q1 2018 Bunge Limited Conference Call" and follow the prompts. Please go to the website at least 15 minutes prior to the call to register and download any necessary audio software.
A replay of the call will be available later in the day on May 2, 2018, continuing through June 2, 2018. To listen to it, please dial (877) 344-7529 in the United States, (855) 669-9658 in Canada, or (412) 317-0088 in other locations. When prompted, enter confirmation code 10119049. A replay will also be available in "Past events" at "Webcasts and presentations" in the "Investors" section of the company's website.
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed; produces edible oil products for consumers and commercial customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service categories; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include our expectations regarding industry trends and our future financial performance, the completion and timing of acquisitions and dispositions, our assumptions and expectations for the Global Competitiveness Program and other efficiency initiatives and similar statements that are not historical facts. These forward-looking statements reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
The following table provides a summary of certain gains and charges that may be of interest to investors, including a description of these items and their effect on net income (loss) attributable to Bunge, earnings per share diluted and total segment EBIT for the quarters ended March 31, 2018 and 2017.
(US$ in millions, except per share data) |
Net Income (Loss) Attributable to Bunge |
Earnings Per Share Diluted |
Total Segment EBIT (6) | |||||||||||||||
Quarter Ended March 31, |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 | ||||||||||||
Agribusiness: (1) |
$ |
(8) |
$ |
— |
$ |
(0.05) |
$ |
— |
$ |
(10) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(9) |
— |
(0.06) |
— |
(11) |
— |
||||||||||||
Gain on disposition of subsidiaries |
1 |
— |
0.01 |
— |
1 |
— |
||||||||||||
Edible Oil Products: (2) |
$ |
(5) |
$ |
— |
$ |
(0.04) |
$ |
— |
$ |
(7) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(2) |
— |
(0.01) |
— |
(2) |
— |
||||||||||||
Acquisition and integration costs |
(3) |
— |
(0.03) |
— |
(5) |
— |
||||||||||||
Milling Products: (3) |
$ |
(1) |
$ |
— |
$ |
(0.01) |
$ |
— |
$ |
(2) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(1) |
— |
(0.01) |
— |
(2) |
— |
||||||||||||
Sugar & Bioenergy: (4) |
$ |
(4) |
$ |
(6) |
$ |
(0.03) |
$ |
(0.04) |
$ |
(4) |
$ |
(6) |
||||||
Severance, employee benefit, and other costs |
(1) |
— |
(0.01) |
— |
(1) |
— |
||||||||||||
Sugar restructuring charges |
(3) |
(6) |
(0.02) |
(0.04) |
(3) |
(6) |
||||||||||||
Fertilizer: (5) |
$ |
(1) |
$ |
— |
$ |
(0.01) |
$ |
— |
$ |
(1) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(1) |
— |
(0.01) |
— |
(1) |
— |
||||||||||||
Total |
$ |
(19) |
$ |
(6) |
$ |
(0.14) |
$ |
(0.04) |
$ |
(24) |
$ |
(6) |
Consolidated Earnings Data (Unaudited) | ||||||
Quarter Ended | ||||||
(US$ in millions, except per share data) |
2018 |
2017 | ||||
Net sales |
$ |
10,641 |
$ |
11,121 |
||
Cost of goods sold |
(10,257) |
(10,661) |
||||
Gross profit |
384 |
460 |
||||
Selling, general and administrative expenses |
(344) |
(378) |
||||
Foreign exchange gains (losses) |
— |
56 |
||||
Other income (expense) – net |
24 |
(3) |
||||
EBIT attributable to noncontrolling interest (a) (7) |
(3) |
(2) |
||||
Total Segment EBIT (6) |
61 |
133 |
||||
Interest income |
8 |
12 |
||||
Interest expense |
(70) |
(65) |
||||
Income tax (expense) benefit |
(19) |
(28) |
||||
Noncontrolling interest share of interest and tax (a) (7) |
1 |
1 |
||||
Income (loss) from continuing operations, net of tax |
(19) |
53 |
||||
Income (loss) from discontinued operations, net of tax |
(2) |
(6) |
||||
Net income (loss) attributable to Bunge (7) |
(21) |
47 |
||||
Convertible preference share dividends |
(8) |
(8) |
||||
Net income (loss) available to Bunge common shareholders |
$ |
(29) |
$ |
39 |
||
Net income (loss) per common share diluted attributable to Bunge |
||||||
Continuing operations |
$ |
(0.20) |
$ |
0.31 |
||
Discontinued operations |
(0.01) |
(0.04) |
||||
Net income (loss) per common share - diluted |
$ |
(0.21) |
$ |
0.27 |
||
Weighted–average common shares outstanding - diluted |
141 |
141 |
||||
(a) The line items "EBIT attributable to noncontrolling interest" and "Noncontrolling interest share of interest and tax" when |
Consolidated Segment Information (Unaudited) | ||||||
Set forth below is a summary of certain earnings data and volumes by reportable segment. | ||||||
Quarter Ended March 31, | ||||||
(US$ in millions, except volumes) |
2018 |
2017 | ||||
Volumes (in thousands of metric tons): |
||||||
Agribusiness |
35,805 |
35,023 |
||||
Edible Oil Products |
2,008 |
1,789 |
||||
Milling Products |
1,135 |
1,074 |
||||
Sugar & Bioenergy |
1,447 |
1,847 |
||||
Fertilizer |
172 |
162 |
||||
Net sales: |
||||||
Agribusiness |
$ |
7,462 |
$ |
7,819 |
||
Edible Oil Products |
2,149 |
1,880 |
||||
Milling Products |
409 |
382 |
||||
Sugar & Bioenergy |
563 |
988 |
||||
Fertilizer |
58 |
52 |
||||
Total |
$ |
10,641 |
$ |
11,121 |
||
Gross profit: |
||||||
Agribusiness |
$ |
203 |
$ |
278 |
||
Edible Oil Products |
126 |
123 |
||||
Milling Products |
54 |
48 |
||||
Sugar & Bioenergy |
(4) |
9 |
||||
Fertilizer |
5 |
2 |
||||
Total |
$ |
384 |
$ |
460 |
||
Selling, general and administrative expenses: |
||||||
Agribusiness |
$ |
(185) |
$ |
(221) |
||
Edible Oil Products |
(91) |
(86) |
||||
Milling Products |
(39) |
(37) |
||||
Sugar & Bioenergy |
(24) |
(29) |
||||
Fertilizer |
(5) |
(5) |
||||
Total |
$ |
(344) |
$ |
(378) |
||
Foreign exchange gains (losses): |
||||||
Agribusiness |
$ |
— |
$ |
49 |
||
Edible Oil Products |
(1) |
3 |
||||
Milling Products |
2 |
— |
||||
Sugar & Bioenergy |
1 |
5 |
||||
Fertilizer |
(2) |
(1) |
||||
Total |
$ |
— |
$ |
56 |
||
Segment EBIT: |
||||||
Agribusiness |
$ |
42 |
$ |
109 |
||
Edible Oil Products |
28 |
36 |
||||
Milling Products |
17 |
9 |
||||
Sugar & Bioenergy |
(24) |
(17) |
||||
Fertilizer |
(2) |
(4) |
||||
Total Segment EBIT (6) |
$ |
61 |
$ |
133 |
Condensed Consolidated Balance Sheets (Unaudited) | ||||||
March 31, |
December 31, | |||||
(US$ in millions) |
2018 |
2017 | ||||
Assets |
||||||
Cash and cash equivalents |
$ |
287 |
$ |
601 |
||
Trade accounts receivable, net |
1,686 |
1,501 |
||||
Inventories (9) |
6,952 |
5,074 |
||||
Other current assets |
4,451 |
3,227 |
||||
Total current assets |
13,376 |
10,403 |
||||
Property, plant and equipment, net |
5,735 |
5,310 |
||||
Goodwill and other intangible assets, net |
1,601 |
838 |
||||
Investments in affiliates |
462 |
461 |
||||
Time deposits under trade structured finance program |
318 |
315 |
||||
Other non-current assets |
1,592 |
1,544 |
||||
Total assets |
$ |
23,084 |
$ |
18,871 |
||
Liabilities and Equity |
||||||
Short-term debt |
$ |
1,293 |
$ |
304 |
||
Current portion of long-term debt |
14 |
15 |
||||
Letter of credit obligations under trade structured finance program |
318 |
315 |
||||
Trade accounts payable |
3,909 |
3,395 |
||||
Other current liabilities |
3,016 |
2,186 |
||||
Total current liabilities |
8,550 |
6,215 |
||||
Long-term debt |
5,446 |
4,160 |
||||
Other non-current liabilities |
1,341 |
1,139 |
||||
Total liabilities |
15,337 |
11,514 |
||||
Redeemable noncontrolling interest |
470 |
— |
||||
Total equity |
7,277 |
7,357 |
||||
Total liabilities, redeemable noncontrolling interest and equity |
$ |
23,084 |
$ |
18,871 |
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||
Quarter Ended March 31, | ||||||
(US$ in millions) |
2018 |
2017 | ||||
Operating Activities |
||||||
Net income (7) |
$ |
(19) |
$ |
48 |
||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: |
||||||
Foreign exchange (gain) loss on net debt |
33 |
14 |
||||
Depreciation, depletion and amortization |
142 |
130 |
||||
Deferred income tax (benefit) |
(15) |
(12) |
||||
Other, net |
21 |
36 |
||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
||||||
Trade accounts receivable |
47 |
27 |
||||
Inventories |
(1,466) |
(252) |
||||
Secured advances to suppliers |
(110) |
10 |
||||
Trade accounts payable and accrued liabilities |
268 |
421 |
||||
Advances on sales |
(93) |
(57) |
||||
Net unrealized gain (loss) on derivative contracts |
435 |
(259) |
||||
Margin deposits |
(187) |
(83) |
||||
Marketable securities |
(153) |
(47) |
||||
Beneficial interest in securitized trade receivables (11) |
(432) |
(564) |
||||
Other, net |
(13) |
(15) |
||||
Cash provided by (used for) operating activities |
(1,542) |
(603) |
||||
Investing Activities |
||||||
Payments made for capital expenditures |
(105) |
(182) |
||||
Acquisitions of businesses (net of cash acquired) |
(968) |
(367) |
||||
Proceeds from investments |
336 |
59 |
||||
Payments for investments |
(620) |
(65) |
||||
Proceeds from beneficial interest in securitized trade receivables (11) |
431 |
556 |
||||
Settlement of net investment hedges |
10 |
— |
||||
Payments for investments in affiliates |
(16) |
(45) |
||||
Other, net |
(6) |
(7) |
||||
Cash provided by (used for) investing activities |
(938) |
(51) |
||||
Financing Activities |
||||||
Net borrowings (repayments) of short-term debt |
984 |
228 |
||||
Net proceeds (repayments) of long-term debt |
1,264 |
174 |
||||
Proceeds from the exercise of options for common shares |
4 |
46 |
||||
Dividends paid |
(73) |
(67) |
||||
Other, net |
(5) |
(5) |
||||
Cash provided by (used for) financing activities |
2,174 |
376 |
||||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash |
(7) |
20 |
||||
Net increase (decrease) in cash and cash equivalents, and restricted cash |
(313) |
(258) |
||||
Cash and cash equivalents, and restricted cash - beginning of period |
605 |
938 |
||||
Cash and cash equivalents, and restricted cash - end of period |
$ |
292 |
$ |
680 |
This earnings release contains certain "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934. Bunge has reconciled these non-GAAP financial measures to the most directly comparable U.S. GAAP measures below. These measures may not be comparable to similarly titled measures used by other companies.
Total Segment EBIT and Total Segment EBIT, adjusted
Bunge uses total segment earnings before interest and taxes ("Total Segment EBIT") to evaluate Bunge's operating performance. Total Segment EBIT is the aggregate of each of our five reportable segments' earnings before interest and taxes. Total Segment EBIT, adjusted, is calculated by excluding certain gains and charges as described above in "Additional Financial Information" from Total Segment EBIT. Total Segment EBIT and Total Segment EBIT, adjusted are non-GAAP financial measures and are not intended to replace net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Bunge's management believes these non-GAAP measures are a useful measure of its reportable segments' operating profitability, since the measures allow for an evaluation of segment performance without regard to their financing methods or capital structure. For this reason, operating performance measures such as these non-GAAP measures are widely used by analysts and investors in Bunge's industries. These non-GAAP measures are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to net income (loss) or any other measure of consolidated operating results under U.S. GAAP.
Below is a reconciliation of Net income attributable to Bunge to Total Segment EBIT, adjusted:
Quarter Ended | ||||||
(US$ in millions) |
2018 |
2017 | ||||
Net income (loss) attributable to Bunge |
$ |
(21) |
$ |
47 |
||
Interest income |
(8) |
(12) |
||||
Interest expense |
70 |
65 |
||||
Income tax expense (benefit) |
19 |
28 |
||||
(Income) loss from discontinued operations, net of tax |
2 |
6 |
||||
Noncontrolling interest share of interest and tax |
(1) |
(1) |
||||
Total Segment EBIT |
61 |
133 |
||||
Certain (gains) and charges |
24 |
6 |
||||
Total Segment EBIT, adjusted |
$ |
85 |
$ |
139 |
Net income (loss) per common share from continuing operations-diluted, adjusted, excludes certain gains and charges and discontinued operations and is a non-GAAP financial measure. This measure is not a measure of earnings per common share-diluted, the most directly comparable U.S. GAAP financial measure. It should not be considered as an alternative to earnings per share-diluted or any other measure of consolidated operating results under U.S. GAAP. Net income (loss) per common share from continuing operations-diluted, adjusted is a useful measure of the Company's profitability.
Below is a reconciliation of Net income attributable to Bunge to Net income (loss) - adjusted (excluding certain gains & charges and discontinued operations).
Quarter Ended | |||||||
(US$ in millions, except per share data) |
2018 |
2017 | |||||
Net Income (loss) attributable to Bunge |
$ |
(21) |
$ |
47 |
|||
Adjusted for certain gains and charges: |
|||||||
Severance, employee benefit, and other costs |
14 |
— |
|||||
Sugar restructuring charges |
3 |
6 |
|||||
Acquisition costs |
3 |
— |
|||||
Gain on disposition of equity interests/subsidiaries |
(1) |
— |
|||||
Adjusted Net Income attributable to Bunge |
(2) |
53 |
|||||
Discontinued Operations |
2 |
6 |
|||||
Convertible Preference shares dividends |
(8) |
(8) |
|||||
Net income (loss) - adjusted (excluding certain gains & charges and discontinued |
$ |
(8) |
$ |
51 |
|||
Weighted-average common shares outstanding - diluted |
141 |
141 |
|||||
Net income (loss) per common share - diluted, adjusted (excluding certain gains & charges |
$ |
(0.06) |
$ |
0.35 |
Below is a reconciliation of Net income (loss) per common share from continuing operations - diluted, adjusted (excluding certain gains & charges and discontinued operations) to Net income (loss) per common share–diluted:
Quarter Ended | |||||||
2018 |
2017 | ||||||
Continuing operations: |
|||||||
Net income (loss) per common share - diluted adjusted (excluding certain gains & charges and |
$ |
(0.06) |
$ |
0.35 |
|||
Certain gains & charges (see Additional Financial Information section) |
(0.14) |
(0.04) |
|||||
Net income (loss) per common share - continuing operations |
(0.20) |
0.31 |
|||||
Discontinued operations: |
(0.01) |
(0.04) |
|||||
Net income (loss) per common share - diluted |
$ |
(0.21) |
$ |
0.27 |
The following table summarizes the costs incurred as part of the Global Competitiveness Program and other associated cost reduction and strategic initiatives.
Quarter Ended March 31, 2018 | |||||||||
Severance |
Other Costs |
Total Costs | |||||||
Global Competitiveness Program: |
|||||||||
Agribusiness |
$ |
4 |
$ |
6 |
$ |
10 |
|||
Edible Oil Products |
1 |
1 |
2 |
||||||
Milling Products |
— |
1 |
1 |
||||||
Sugar & Bioenergy |
— |
1 |
1 |
||||||
Fertilizer |
— |
— |
— |
||||||
Costs included in Selling, general and administrative expenses |
5 |
9 |
14 |
||||||
Other associated cost reduction and strategic initiatives: |
|||||||||
Costs included in Cost of goods sold |
2 |
— |
2 |
||||||
Total GCP and Other costs |
$ |
7 |
$ |
9 |
$ |
16 |
2017 baseline total SG&A was $1.45 billion. There was $100 million of SG&A determined not to be addressable through the GCP, leaving 2017 addressable baseline SG&A of $1.35 billion ("Addressable Baseline"). The items that are not addressable by the GCP relate to costs other than direct spending and personnel costs, such as amortization, bad debt charges and recoveries and financing fees and taxes.
GCP savings are determined by comparing Adjusted Actual Addressable SG&A to the Addressable Baseline. Adjusted Actual Addressable SG&A is equal to the total reported SG&A minus the items not addressable by the GCP, plus or minus items such as:
We expect to reduce Actual Addressable SG&A from the Addressable Baseline level of $1.35 billion to $1.1 billion by 2020, achieving $250 million in run-rate savings by the end of 2019.
As previously announced, the Company has developed a high-level estimate of $200 - $300 million for the total pre-tax costs expected to be incurred in connection with the Global Competitiveness Program.
(1) Agribusiness: | ||||||||
2018 first quarter EBIT includes charges related to the Company's Global Competitiveness Program of $(10) million [$(4) million for severance and other employee benefit costs and $(6) million for other program costs], all of which was included in Selling, general and administrative expenses. 2018 first quarter EBIT also includes $(1) million for severance and other employee benefits related to other industrial initiatives recorded in Cost of goods sold and a $1 million gain on the sale of a subsidiary. | ||||||||
(2) Edible Oil Products: | ||||||||
2018 first quarter EBIT includes charges related to the Company's Global Competitiveness Program of $(2) million [$(1) million for severance and other employee benefit costs and $(1) million for other program costs], all of which was included in Selling, general and administrative expenses. Additionally, $(5) million of acquisition and integration costs related to the acquisition of IOI Loders Croklaan were incurred, all of which were included within Selling, general and administrative expenses. | ||||||||
(3) Milling Products: | ||||||||
2018 first quarter EBIT includes charges related to the Company's Global Competitiveness Program of $(1) million for other program costs, all of which was included in Selling, general and administrative expenses. 2018 first quarter EBIT also includes $(1) million for severance and other employee benefits related to other industrial initiatives recorded in Cost of goods sold. | ||||||||
(4) Sugar & Bioenergy: | ||||||||
2018 first quarter EBIT includes charges related to the Company's Global Competitiveness Program of $(1) million for other program costs, all of which was included in Selling, general and administrative expenses. 2018 first quarter EBIT also includes Sugar restructuring charges of $(3) million recorded in Cost of goods sold. | ||||||||
2017 first quarter EBIT also includes Sugar restructuring charges of $(6) million recorded in Cost of goods sold. | ||||||||
(5) Fertilizer: | ||||||||
2018 first quarter EBIT includes $(1) million for severance and other employee benefits related to other industrial initiatives recorded in Cost of goods sold. | ||||||||
Notes to Financial Tables: | ||||||||
(6) |
See Definition and Reconciliation of Non-GAAP Measures. | |||||||
(7) |
A reconciliation of Net income (loss) attributable to Bunge to Net income (loss) is as follows: | |||||||
Quarter Ended March 31, | ||||||||
2018 |
2017 | |||||||
Net income (loss) attributable to Bunge |
$ |
(21) |
$ |
47 |
||||
EBIT attributable to noncontrolling interest |
3 |
2 |
||||||
Noncontrolling interest share of interest and tax |
(1) |
(1) |
||||||
Net income (loss) |
$ |
(19) |
$ |
48 |
||||
(8) |
Approximately 7 million and 2 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the quarters ended March 31, 2018 and 2017, respectively. Additionally, approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares were not dilutive and not included in the weighted-average number of shares outstanding for the quarters ended March 31, 2018 and 2017. | |||||||
(9) |
Includes readily marketable inventories of $5,410 million and $4,056 million at March 31, 2018 and December 31, 2017, respectively. Of these amounts, $4,095 million and $2,767 million, respectively, can be attributable to merchandising activities. | |||||||
(10) |
The Oilseed business included in our Agribusiness segment consists of our global activities related to the crushing of oilseeds (including soybeans, canola, rapeseed and sunflower seed) into protein meals and vegetable oils; the trading and distribution of oilseeds and oilseed products; and biodiesel production, which is primarily conducted through joint ventures. | |||||||
The Grains business included in our Agribusiness segment consists primarily of our global grain origination activities, which principally conduct the purchasing, cleaning, drying, storing and handling of corn, wheat, barley, rice and oilseeds at our network of grain elevators; the logistical services for distribution of these commodities to our customer markets through our port terminals and transportation assets (including trucks, railcars, barges and ocean vessels); and financial services and activities for customers from whom we purchase commodities and other third parties. | ||||||||
(11) |
In accordance with new cash flow presentation requirements under U.S. Generally Accepted Accounting Principles, cash receipts from payments on beneficial interests in securitized trade receivables should be classified as cash inflows from investing activities. As such, we have made necessary changes to our cash flow presentation in current and prior periods presented, which resulted in an increase in cash inflows from investing activities and a corresponding decrease to cash from operating activities. |
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SOURCE Bunge Limited
ST. LOUIS, March 23, 2018 /PRNewswire/ -- Bunge North America, the North American operating arm of Bunge Limited (NYSE: BG), issued the following statement following Congressional approval of the omnibus spending bill containing legislation to correct the new tax law which created unintentional tax consequences by giving farmers specific tax benefits for delivering to cooperatives over private grain companies. The following statement can be attributed to Todd Bastean, president, Bunge's North American region.
"We appreciate Members of Congress on both sides of the aisle working together to correct this unintended change to the tax code. A healthy, competitive agribusiness and food industry is important to the U.S. economy and we want to thank Congress for finding a solution that restores the level playing field for participants in the value chain."
About Bunge North America
Bunge North America (www.bungenorthamerica.com), the North American operating arm of Bunge Limited (NYSE: BG), is a vertically integrated food and feed ingredient company, supplying raw and processed agricultural commodities and specialized food ingredients to a wide range of customers in the animal feed, food processor, foodservice and bakery industries. With headquarters in St. Louis, Missouri, Bunge North America and its subsidiaries operate grain elevators, oilseed processing plants, edible oil refineries and packaging facilities, and corn, wheat and rice mills in the U.S., Canada and Mexico.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed; produces edible oil products for consumers and commercial customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service categories; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
View original content:http://www.prnewswire.com/news-releases/bunge-statement-regarding-resolution-of-199a-issue-300618924.html
SOURCE Bunge North America
WHITE PLAINS, N.Y., March 14, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.46 per common share. The dividend is payable on June 4, 2018 to shareholders of record on May 21, 2018.
The company also declared a quarterly cash dividend of $1.21875 per share on its 4.875% cumulative convertible perpetual preference shares, payable on June 1, 2018 to shareholders of record on May 15, 2018.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed; produces edible oil products for consumers and commercial customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service categories; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
View original content:http://www.prnewswire.com/news-releases/bunge-limited-declares-dividends-on-common-and-preference-shares-300614212.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y., March 1, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) ("Bunge") today announced it has completed its acquisition of a 70% ownership interest in IOI Loders Croklaan ("Loders") from IOI Corporation Berhad (KLSE: IOICORP) ("IOI"). The acquisition establishes Bunge as a global leader in business-to-business oil solutions with expanded value-added capabilities, reach and scale across core geographies. With Loders, Bunge will provide a comprehensive customer offering, from core products to specialties, for B2B customers in the food processing, industrial and artisanal bakery, confectionery, human nutrition and food service segments.
We expect Loders will generate $105 million of full-year EBITDA in 2018, plus $15 million in synergies. We also expect the transaction to be accretive to earnings on a cash basis this year. The enterprise will operate within Bunge's Food & Ingredients business as "Bunge Loders Croklaan."
Soren Schroder, Bunge's Chief Executive Officer, stated, "This is a transformational acquisition that increases our value-added food and ingredients activities to the 35% to 40% share of our portfolio we've targeted. With a comprehensive product offering derived from seed and tropical oils, leading innovation and application capabilities, and world class sustainability programs, Bunge Loders Croklaan will be the first choice for global edible oils customers seeking to innovate and grow."
Gordon Hardie, Bunge's President of Food & Ingredients, stated, "We're excited to leverage the combination of Bunge's integrated supply chain and existing oils portfolio with Loders' high-end specialty and semi-specialty products to help our customers grow their brands and businesses around the world. We're also excited to begin working alongside our new colleagues, whose deep market and technical knowledge will benefit our continuing development of a wide range of edible oils applications aligned with consumer trends and customers' needs."
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Non-GAAP Financial Measures
To supplement its reporting of financial measures determined in accordance with GAAP, Bunge utilizes certain non-GAAP financial measures in this press release, including forecasted cash accretion and EBITDA. EBITDA refers to Loders' earnings before interest, taxes, depreciation and amortization; and cash accretion reflects the expected impact of the transaction on our earnings, excluding step-up amortization. The EBITDA and cash accretion measures also exclude estimated transaction costs. Management believes this information is useful to investors for their independent evaluation and understanding of the transaction with Loders. This information is provided only on a non-GAAP basis without a reconciliation of these measures to the mostly directly comparable GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for items such as foreign exchange effects, mark-to-market adjustments, transaction and integration costs, restructuring costs, timing of capital expenditures and other items. These items depend on highly variable factors, many of which may not be in our control, and which could vary significantly from future GAAP financial results.
The non-GAAP financial measures described above are in addition to, and not meant to be considered superior to, or a substitute for, financial measures prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this announcement may not be comparable to similarly titled measures reported by other companies.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements include, among others, statements regarding the expected synergies and other benefits of the acquisition, anticipated financial results and prospective business performance and opportunities. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: the ability to effectively integrate the acquired business and obtain cost savings and other synergies within expected timeframes; higher than expected operating costs and potential business disruption; how customers, suppliers and employees will react to the transaction; industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from other acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; our ability to retain key employees and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Bunge Limited
WHITE PLAINS, N.Y., Feb. 14, 2018 /PRNewswire/ -- Bunge Limited (NYSE:BG)
| ||||||||||||||
Quarter Ended |
Year Ended | |||||||||||||
US$ in millions, except per share data |
2017 |
2016 |
2017 |
2016 | ||||||||||
Net income (loss) attributable to Bunge |
$ |
(60) |
$ |
271 |
$ |
160 |
$ |
745 |
||||||
Net income (loss) per common share from continuing |
$ |
(0.48) |
$ |
1.83 |
$ |
0.89 |
$ |
5.07 |
||||||
Net income (loss) per common share from continuing |
$ |
0.67 |
$ |
1.70 |
$ |
1.94 |
$ |
4.67 |
||||||
Total Segment EBIT (a) |
$ |
55 |
$ |
403 |
$ |
436 |
$ |
1,143 |
||||||
Certain gains & (charges) (b) |
(100) |
41 |
(141) |
43 |
||||||||||
Total Segment EBIT, adjusted (a) |
$ |
155 |
$ |
362 |
$ |
577 |
$ |
1,100 |
||||||
Agribusiness (c) |
$ |
78 |
$ |
237 |
$ |
332 |
$ |
782 |
||||||
Oilseeds |
$ |
34 |
$ |
134 |
$ |
216 |
$ |
407 |
||||||
Grains |
$ |
44 |
$ |
103 |
$ |
116 |
$ |
375 |
||||||
Food & Ingredients (d) |
$ |
70 |
$ |
70 |
$ |
223 |
$ |
229 |
||||||
Sugar & Bioenergy |
$ |
(8) |
$ |
30 |
$ |
3 |
$ |
51 |
||||||
Fertilizer |
$ |
15 |
$ |
25 |
$ |
19 |
$ |
38 |
(a) |
Total Segment earnings before interest and tax ("Total Segment EBIT"); Total Segment EBIT, adjusted; net income (loss) per common share from continuing operations-diluted, adjusted; adjusted funds from operations and ROIC are non-GAAP financial measures. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables attached to this press release and the accompanying slide presentation posted on Bunge's website. |
(b) |
Certain gains & (charges) included in Total Segment EBIT. See Additional Financial Information for detail. |
(c) |
See footnote 11 of Additional Financial Information for a description of the Oilseeds and Grains businesses in Bunge's Agribusiness segment. |
(d) |
Includes Edible Oil Products and Milling Products segments. |
Soren Schroder, Bunge's Chief Executive Officer, commented, "While industry headwinds persisted through the end of the year, we made good progress in 2017 towards our strategic objectives by taking proactive steps to improve our cost structure and create a more balanced business.
"Fourth quarter oilseed margins did not recover as quickly as expected, and sugarcane milling results were negatively impacted by a sustained period of rain late in the quarter. Food & Ingredients finished the year on a strong note with Edible Oils closing out a near-record year. Looking ahead, we are seeing positive signs that soy processing conditions are improving, supporting our expectation that all segments will show year-over-year earnings growth in 2018. We expect a soft first quarter with improving conditions throughout the remainder of the year."
Schroder continued, "Our Global Competitiveness Program is off to a strong start, putting us on a good trajectory to achieve our $250 million target by the end of 2019. We also delivered $110 million of industrial cost savings in 2017, exceeding our target by $10 million. In addition, we continue to work toward the separation of our sugarcane milling business and are in the process of exiting from our global sugar trading activities and our renewable oils joint venture.
"We expect our acquisition of Loders Croklaan to close during the first quarter. Loders will greatly advance our strategy to expand downstream into higher margin products closely tied to our global oils and crushing footprint. This will accelerate our move to become the leading global B2B edible oils company."
Agribusiness
Grains and Oilseeds results were lower than last year, as margins overall remained weak.
In Grains, results in North America were lower than expected, but higher than last year, primarily due to effective positioning, which helped overcome weaker structural margins and lower volumes due to increased exports out of South America. Lower origination results in South America were driven by the combination of weak margins and farmers' delayed pricing of 2018 crops. Results in global grain trading & distribution were similar to last year; however, margins remained under pressure due to limited dislocation opportunities.
In Oilseeds, structural processing margins overall remained depressed during the quarter, primarily due to an oversupply of soymeal in destinations. Compared to last year, higher soy crushing results in Brazil were more than offset by lower crushing results in Europe, Argentina and Asia. However, conditions improved toward the end of the quarter as Argentine crushers reduced production, bringing global soymeal supply into better balance with demand. This is having a particularly positive impact on soy crush margins in Western Europe and Vietnam. In the U.S., structural margins were good and generally as expected, but slightly lower than last year. Softseed processing results were lower than last year as higher results in Canada were more than offset by lower results in Europe. Results in global oilseeds trading & distribution were similar to last year.
Edible Oil Products
Edible Oils had a strong finish to the year. In North America, improved performance was driven by higher margins and lower costs. In Brazil, higher volume and lower costs were partially offset by lower margins as industry players continued to aggressively compete for price sensitive consumers. In Europe, margins and volumes benefitted from our new value-added acquisitions. In Asia, improved volumes and sales mix drove results with both India and China contributing strongly.
Milling Products
The decline in segment results was primarily in Brazil, where margins were negatively impacted by consumers trading down on value and where the small bakery channel continued to experience soft demand. Also impacting results in Brazil, was aggressive pricing by small mills, which increased production in response to the above average Brazilian wheat crop. In the U.S., margins and volumes were higher. In Mexico, results benefitted from higher volumes reflecting new customer wins. This was the third straight quarter of sequential volume improvement in Mexico and reflects a new quarterly high for the business.
Sugar & Bioenergy
Fourth quarter results in sugarcane milling were significantly below our expectations, primarily due to a sustained period of rain late in the quarter that reduced crush by approximately 700,000 metric tons, negatively impacting sales and unit costs. Compared to last year, the decline in sugarcane milling results was primarily due to lower ethanol and sugar prices, which were down on average by 15% and 18%, respectively, as well as reduced crush volume. Despite these headwinds, this marks the third straight year that full-year results in sugarcane milling were profitable and free cash flow positive. Trading & distribution results in the quarter were approximately breakeven compared to a loss last year. Results in the quarter were impacted by a $5 million loss from our renewable oils joint venture.
As discussed during the last quarter, we remain committed to the separation of our sugarcane milling business. We are also in the process of exiting our global sugar trading operation and are in late stage discussions to sell our interest in our renewable oils joint venture to our partner. Collectively, these two businesses negatively impacted 2017 Sugar & Bioenergy results by approximately $40 million.
Fertilizer
Higher volumes and lower costs in our Argentine fertilizer business were offset by a decrease in margins. Results in the fourth quarter 2016 had an $11 million benefit from the reversal of a provision related to tariffs on natural gas consumption.
Global Competitiveness Program
The Global Competitiveness Program ("GCP") announced in July 2017 is expected to rationalize Bunge's cost structure and reengineer the way we operate, reducing our 2017 addressable baseline SG&A of $1.35 billion to $1.1 billion by 2020.
The company reduced addressable SG&A by $40 million in 2017 as compared to the baseline, exceeding its $15 million target by approximately $25 million, and incurred $55 million of severance and program-related SG&A costs during the year.
Cash Flow
Cash generated by operations in the year ended December 31, 2017 was $1,006 million compared to cash generated of $1,904 million in 2016. Adjusted funds from operations was $884 million for the year ended December 31, 2017. Our cash cycle was down 3.5 days compared to last year, reflecting disciplined capital management. This allowed us to grow our volume by approximately 10 million metric tons while holding our working capital relatively constant with last year levels. Total capex of $662 million was $188 million below our original 2017 target of $850 million.
Income Taxes
Adjusting for all notable items, the effective tax rate for the year ended December 31, 2017 was approximately 13%. As a result of tax law changes in the U.S. and Argentina during the fourth quarter, we recognized a non-cash charge of $66 million, which included taxes on accumulated foreign earnings and withholding taxes related to the future repatriation of those earnings, partially offset by adjustments for deferred tax assets and liabilities.
In 2018, we will continue to focus on execution of our strategic priorities.
Savings from the Global Competitiveness Program are expected to total $100 million versus our 2017 addressable SG&A baseline. We expect an additional $80 million of savings in industrial and supply chain initiatives. Savings from these programs are reflected in the segment EBIT ranges below.
In Agribusiness, we are not expecting a quick turnaround; however, oilseed crush margins are showing signs of improvement. We are entering South American harvests with increased flexibility. We have reduced forward logistics and sales commitments in Brazil and Argentina, providing more optionality to adapt to farmer marketing and customer buying patterns. In each of the past two years, unusually low priced feed wheat and DDGS have taken share from soybean meal in feed formulations, negatively impacting soy crush margins. With soymeal more competitively priced and expectations that Argentine processors will crush in alignment with the pace of farmer selling, we see a better balance in the supply and demand of soymeal during the year. Based on these factors, which should improve origination and crush margins, we see segment EBIT improving to a range of $550 to $700 million. We expect results to be weighted to the second half of the year with a soft first quarter.
In Food & Ingredients, we expect segment results to improve sequentially as we progress through the year, resulting in EBIT of $260 to $280 million. Our outlook for year-over-year growth reflects increased volume of higher value-added products, growth in sales to key accounts and higher results in Brazil wheat milling. The EBIT range does not reflect contributions from Loders Croklaan, which we expect to close in the first quarter.
In Sugar & Bioenergy, we expect 2018 EBIT of $50 to $70 million. Results are expected to be seasonally weak in the first half of the year. We expect a loss of approximately $40 million in the first quarter, due to carrying over an exceptionally low inventory balance from 2017 into the intercrop period due to the reduced crush volume.
In Fertilizer, we expect EBIT of approximately $25 million.
Additionally, we expect the following for 2018 (excluding the Loders Croklaan acquisition): a tax rate range of 18% to 22% reflecting the impacts of U.S. and Argentina tax reform; net interest expense in the range of $225 to $245 million; capital expenditures of approximately $650 million, of which approximately $150 million is related to sugarcane milling; and depreciation, depletion and amortization of approximately $625 million.
Bunge Limited's management will host a conference call at 8:00 a.m. Eastern on Wednesday, February 14, 2018 to discuss the company's results.
Additionally, a slide presentation to accompany the discussion of results will be posted on www.bunge.com.
To listen to the call, please dial (877) 883-0383. If you are located outside the United States or Canada, dial (412) 902-6506. Please dial in five to 10 minutes before the scheduled start time. When prompted, enter confirmation code 2101973. The call will also be webcast live at www.bunge.com.
To access the webcast, go to "Webcasts and presentations" in the "Investors" section of the company's website. Select "Q4 2017 Bunge Limited Conference Call" and follow the prompts. Please go to the website at least 15 minutes prior to the call to register and download any necessary audio software.
A replay of the call will be available later in the day on February 14, 2018, continuing through March 14, 2018. To listen to it, please dial (877) 344-7529 in the United States, (855) 669-9658 in Canada, or (412) 317-0088 in other locations. When prompted, enter confirmation code 10115948. A replay will also be available in "Past events" at "Webcasts and presentations" in the "Investors" section of the company's website.
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include our expectations regarding industry trends and our future financial performance, the completion and timing of acquisitions and dispositions, our assumptions and expectations for the Global Competitiveness Program and other efficiency initiatives and similar statements that are not historical facts. These forward-looking statements reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
The following table provides a summary of certain gains and charges that may be of interest to investors, including a description of these items and their effect on net income (loss) attributable to Bunge, earnings per share diluted and total segment EBIT for the quarters ended December 31, 2017 and 2016.
(US$ in millions, except per share data) |
Net Income (Loss) Attributable to Bunge |
Earnings Per Share Diluted |
Total Segment EBIT(7) | |||||||||||||||
Quarter Ended December 31, |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 | ||||||||||||
Agribusiness: (1) |
$ |
(42) |
$ |
71 |
$ |
(0.29) |
$ |
0.48 |
$ |
(52) |
$ |
105 |
||||||
Severance, employee benefit, and other costs |
(29) |
— |
(0.20) |
— |
(42) |
— |
||||||||||||
Impairment charges |
(19) |
(15) |
(0.13) |
(0.10) |
(19) |
(15) |
||||||||||||
Gain on disposition of equity interests/subsidiaries |
6 |
86 |
0.04 |
0.58 |
9 |
120 |
||||||||||||
Edible Oil Products: (2) |
$ |
(18) |
$ |
— |
$ |
(0.13) |
$ |
— |
$ |
(22) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(9) |
— |
(0.06) |
— |
(13) |
— |
||||||||||||
Acquisition costs |
(9) |
— |
(0.07) |
— |
(9) |
— |
||||||||||||
Milling Products: (3) |
$ |
(3) |
$ |
— |
$ |
(0.02) |
$ |
— |
$ |
(5) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(3) |
— |
(0.02) |
— |
(5) |
— |
||||||||||||
Sugar & Bioenergy: (4) |
$ |
(4) |
$ |
(53) |
$ |
(0.03) |
$ |
(0.35) |
$ |
(5) |
$ |
(55) |
||||||
Severance, employee benefit, and other costs |
(2) |
— |
(0.02) |
— |
(3) |
— |
||||||||||||
Impairment charges |
(4) |
(42) |
(0.03) |
(0.28) |
(4) |
(44) |
||||||||||||
Indirect tax credits |
8 |
— |
0.06 |
— |
8 |
— |
||||||||||||
Sugar restructuring charges |
(6) |
(3) |
(0.04) |
(0.02) |
(6) |
(3) |
||||||||||||
Provision for long-term receivables in Brazil |
— |
(8) |
— |
(0.05) |
— |
(8) |
||||||||||||
Fertilizer: (5) |
$ |
(10) |
$ |
(6) |
$ |
(0.07) |
$ |
(0.04) |
$ |
(16) |
$ |
(9) |
||||||
Severance, employee benefit, and other costs |
(9) |
— |
(0.06) |
— |
(14) |
— |
||||||||||||
Impairment charges |
(1) |
(6) |
(0.01) |
(0.04) |
(2) |
(9) |
||||||||||||
Interest and Income Taxes: (6) |
$ |
(86) |
$ |
5 |
$ |
(0.61) |
$ |
0.04 |
$ |
— |
$ |
— |
||||||
Income tax benefits (charges) |
(86) |
(5) |
(0.61) |
(0.03) |
— |
— |
||||||||||||
Reversal of interest related to ICMS tax credits in Brazil |
— |
10 |
— |
0.07 |
— |
— |
||||||||||||
Total |
$ |
(163) |
$ |
17 |
$ |
(1.15) |
$ |
0.13 |
$ |
(100) |
$ |
41 |
The following table provides a summary of certain gains and charges that may be of interest to investors, including a description of these items and their effect on net income (loss) attributable to Bunge, earnings per share diluted and total segment EBIT for the years ended December 31, 2017 and 2016.
(US$ in millions, except per share data) |
Net Income (Loss) Attributable to Bunge |
Earnings Per Share Diluted |
Total Segment EBIT(7) | |||||||||||||||
Year Ended December 31, |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 | ||||||||||||
Agribusiness: (1) |
$ |
(61) |
$ |
63 |
$ |
(0.43) |
$ |
0.43 |
$ |
(76) |
$ |
93 |
||||||
Severance, employee benefit, and other costs |
(33) |
— |
(0.23) |
— |
(49) |
— |
||||||||||||
Impairment charges |
(34) |
(23) |
(0.24) |
(0.15) |
(36) |
(27) |
||||||||||||
Gain on disposition of equity interests/subsidiaries |
6 |
86 |
0.04 |
0.58 |
9 |
120 |
||||||||||||
Edible Oil Products: (2) |
$ |
(21) |
$ |
— |
$ |
(0.15) |
$ |
— |
$ |
(26) |
$ |
— |
||||||
Severance, employee benefit, and other costs |
(11) |
— |
(0.07) |
— |
(16) |
— |
||||||||||||
Impairment charges |
(1) |
— |
(0.01) |
— |
(1) |
— |
||||||||||||
Acquisition costs |
(9) |
— |
(0.07) |
— |
(9) |
— |
||||||||||||
Milling Products: (3) |
$ |
(5) |
$ |
9 |
$ |
(0.04) |
$ |
0.06 |
$ |
(8) |
$ |
14 |
||||||
Severance, employee benefit, and other costs |
(5) |
— |
(0.04) |
— |
(7) |
— |
||||||||||||
Impairment charges |
— |
— |
— |
— |
(1) |
— |
||||||||||||
Brazilian wheat import tax contingency |
— |
9 |
— |
0.06 |
— |
14 |
||||||||||||
Sugar & Bioenergy: (4) |
$ |
(14) |
$ |
(53) |
$ |
(0.10) |
$ |
(0.35) |
$ |
(15) |
$ |
(55) |
||||||
Severance, employee benefit, and other costs |
(3) |
— |
(0.02) |
— |
(4) |
— |
||||||||||||
Impairment charges |
(5) |
(42) |
(0.04) |
(0.28) |
(5) |
(44) |
||||||||||||
Indirect tax credits |
16 |
— |
0.11 |
— |
16 |
— |
||||||||||||
Sugar restructuring charges |
(22) |
(3) |
(0.15) |
(0.02) |
(22) |
(3) |
||||||||||||
Provision for long-term receivables in Brazil |
— |
(8) |
— |
(0.05) |
— |
(8) |
||||||||||||
Fertilizer: (5) |
$ |
(10) |
$ |
(6) |
$ |
(0.07) |
$ |
(0.04) |
$ |
(16) |
$ |
(9) |
||||||
Severance, employee benefit, and other costs |
(9) |
— |
(0.06) |
— |
(14) |
— |
||||||||||||
Impairment charges |
(1) |
(6) |
(0.01) |
(0.04) |
(2) |
(9) |
||||||||||||
Interest and Income Taxes: (6) |
$ |
(37) |
$ |
44 |
$ |
(0.26) |
$ |
0.30 |
$ |
— |
$ |
— |
||||||
Income tax benefits (charges) |
(37) |
34 |
(0.26) |
0.23 |
— |
— |
||||||||||||
Reversal of interest related to ICMS tax credits in Brazil |
— |
10 |
— |
0.07 |
— |
— |
||||||||||||
Total |
$ |
(148) |
$ |
57 |
$ |
(1.05) |
$ |
0.40 |
$ |
(141) |
$ |
43 |
Consolidated Earnings Data (Unaudited) | ||||||||||||
Quarter Ended |
Year Ended | |||||||||||
(US$ in millions, except per share data) |
2017 |
2016 |
2017 |
2016 | ||||||||
Net sales |
$ |
11,605 |
$ |
11,799 |
$ |
45,794 |
$ |
42,679 |
||||
Cost of goods sold |
(11,146) |
(11,095) |
(44,030) |
(40,269) |
||||||||
Gross profit |
459 |
704 |
1,764 |
2,410 |
||||||||
Selling, general and administrative expenses |
(399) |
(345) |
(1,445) |
(1,286) |
||||||||
Foreign exchange gains (losses) |
(13) |
(17) |
95 |
(8) |
||||||||
Other income (expense) – net |
12 |
14 |
49 |
12 |
||||||||
Gain on disposition of equity interests/subsidiaries |
9 |
122 |
9 |
122 |
||||||||
Equity investment impairments |
(4) |
(59) |
(17) |
(59) |
||||||||
Intangible asset impairment |
— |
— |
— |
(12) |
||||||||
EBIT attributable to noncontrolling interest (a) (8) |
(9) |
(16) |
(19) |
(36) |
||||||||
Total Segment EBIT (7) |
55 |
403 |
436 |
1,143 |
||||||||
Interest income |
9 |
14 |
38 |
51 |
||||||||
Interest expense |
(72) |
(45) |
(263) |
(234) |
||||||||
Income tax (expense) benefit (6) |
(54) |
(102) |
(56) |
(220) |
||||||||
Noncontrolling interest share of interest and tax (a) (8) |
2 |
2 |
5 |
14 |
||||||||
Income (loss) from continuing operations, net of tax |
(60) |
272 |
160 |
754 |
||||||||
Income (loss) from discontinued operations, net of tax |
— |
(1) |
— |
(9) |
||||||||
Net income (loss) attributable to Bunge (8) |
(60) |
271 |
160 |
745 |
||||||||
Convertible preference share dividends and other obligations |
(9) |
(9) |
(34) |
(36) |
||||||||
Net income (loss) available to Bunge common shareholders |
$ |
(69) |
$ |
262 |
$ |
126 |
$ |
709 |
||||
Net income (loss) per common share diluted attributable to Bunge |
||||||||||||
Continuing operations |
$ |
(0.48) |
$ |
1.83 |
$ |
0.89 |
$ |
5.07 |
||||
Discontinued operations |
— |
(0.01) |
— |
(0.06) |
||||||||
Net income (loss) per common share - diluted |
$ |
(0.48) |
$ |
1.82 |
$ |
0.89 |
$ |
5.01 |
||||
Weighted–average common shares outstanding - diluted |
141 |
148 |
141 |
148 |
||||||||
(a) The line items "EBIT attributable to noncontrolling interest" and "Noncontrolling interest share of interest and tax" when combined, represent consolidated Net (income) loss attributed to noncontrolling interests on a U.S. GAAP basis of presentation. |
Consolidated Segment Information (Unaudited) | ||||||||||||
Set forth below is a summary of certain earnings data and volumes by reportable segment. | ||||||||||||
Quarter Ended |
Year Ended | |||||||||||
(US$ in millions, except volumes) |
2017 |
2016 |
2017 |
2016 | ||||||||
Volumes (in thousands of metric tons): |
||||||||||||
Agribusiness |
34,343 |
32,829 |
142,855 |
134,605 |
||||||||
Edible Oil Products |
2,050 |
1,883 |
7,731 |
6,989 |
||||||||
Milling Products |
1,160 |
1,103 |
4,460 |
4,498 |
||||||||
Sugar & Bioenergy |
2,712 |
2,504 |
9,389 |
8,847 |
||||||||
Fertilizer |
499 |
440 |
1,329 |
1,272 |
||||||||
Net sales: |
||||||||||||
Agribusiness |
$ |
7,904 |
$ |
8,191 |
$ |
31,741 |
$ |
30,061 |
||||
Edible Oil Products |
2,141 |
1,901 |
8,018 |
6,859 |
||||||||
Milling Products |
406 |
404 |
1,575 |
1,647 |
||||||||
Sugar & Bioenergy |
1,002 |
1,168 |
4,054 |
3,709 |
||||||||
Fertilizer |
152 |
135 |
406 |
403 |
||||||||
Total |
$ |
11,605 |
$ |
11,799 |
$ |
45,794 |
$ |
42,679 |
||||
Gross profit: |
||||||||||||
Agribusiness |
$ |
236 |
$ |
451 |
$ |
932 |
$ |
1,490 |
||||
Edible Oil Products |
140 |
123 |
499 |
439 |
||||||||
Milling Products |
54 |
57 |
209 |
269 |
||||||||
Sugar & Bioenergy |
21 |
51 |
99 |
159 |
||||||||
Fertilizer |
8 |
22 |
25 |
53 |
||||||||
Total |
$ |
459 |
$ |
704 |
$ |
1,764 |
$ |
2,410 |
||||
Selling, general and administrative expenses: |
||||||||||||
Agribusiness |
$ |
(225) |
$ |
(195) |
$ |
(810) |
$ |
(706) |
||||
Edible Oil Products |
(104) |
(82) |
(362) |
(320) |
||||||||
Milling Products |
(36) |
(30) |
(139) |
(127) |
||||||||
Sugar & Bioenergy |
(28) |
(32) |
(115) |
(112) |
||||||||
Fertilizer |
(6) |
(6) |
(19) |
(21) |
||||||||
Total |
$ |
(399) |
$ |
(345) |
$ |
(1,445) |
$ |
(1,286) |
||||
Foreign exchange gains (losses): |
||||||||||||
Agribusiness |
$ |
(8) |
$ |
(20) |
$ |
85 |
$ |
(7) |
||||
Edible Oil Products |
(1) |
1 |
3 |
(1) |
||||||||
Milling Products |
(2) |
(2) |
(3) |
(7) |
||||||||
Sugar & Bioenergy |
1 |
4 |
11 |
9 |
||||||||
Fertilizer |
(3) |
— |
(1) |
(2) |
||||||||
Total |
$ |
(13) |
$ |
(17) |
$ |
95 |
$ |
(8) |
||||
Segment EBIT: |
||||||||||||
Agribusiness |
$ |
26 |
$ |
342 |
$ |
256 |
$ |
875 |
||||
Edible Oil Products |
28 |
46 |
126 |
112 |
||||||||
Milling Products |
15 |
24 |
63 |
131 |
||||||||
Sugar & Bioenergy |
(13) |
(25) |
(12) |
(4) |
||||||||
Fertilizer |
(1) |
16 |
3 |
29 |
||||||||
Total Segment EBIT (7) |
$ |
55 |
$ |
403 |
$ |
436 |
$ |
1,143 |
Condensed Consolidated Balance Sheets (Unaudited) | ||||||
December 31, |
December 31, | |||||
(US$ in millions) |
2017 |
2016 | ||||
Assets |
||||||
Cash and cash equivalents |
$ |
601 |
$ |
934 |
||
Time deposits under trade structured finance program |
— |
64 |
||||
Trade accounts receivable, net |
1,501 |
1,676 |
||||
Inventories (10) |
5,074 |
4,773 |
||||
Other current assets |
3,227 |
3,645 |
||||
Total current assets |
10,403 |
11,092 |
||||
Property, plant and equipment, net |
5,310 |
5,099 |
||||
Goodwill and other intangible assets, net |
838 |
709 |
||||
Investments in affiliates |
461 |
373 |
||||
Time deposits under trade structured finance program |
315 |
464 |
||||
Other non-current assets |
1,544 |
1,451 |
||||
Total assets |
$ |
18,871 |
$ |
19,188 |
||
Liabilities and Equity |
||||||
Short-term debt |
$ |
304 |
$ |
257 |
||
Current portion of long-term debt |
15 |
938 |
||||
Letter of credit obligations under trade structured finance program |
315 |
528 |
||||
Trade accounts payable |
3,395 |
3,485 |
||||
Other current liabilities |
2,186 |
2,476 |
||||
Total current liabilities |
6,215 |
7,684 |
||||
Long-term debt |
4,160 |
3,069 |
||||
Other non-current liabilities |
1,139 |
1,092 |
||||
Total liabilities |
11,514 |
11,845 |
||||
Total equity |
7,357 |
7,343 |
||||
Total liabilities and equity |
$ |
18,871 |
$ |
19,188 |
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||
Year Ended | ||||||
(US$ in millions) |
2017 |
2016 | ||||
Operating Activities |
||||||
Net income (8) |
$ |
174 |
$ |
767 |
||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: |
||||||
Impairment charges |
52 |
87 |
||||
Foreign exchange (gain) loss on net debt |
21 |
80 |
||||
Depreciation, depletion and amortization |
609 |
547 |
||||
Deferred income tax |
(23) |
126 |
||||
Other, net |
72 |
(50) |
||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
||||||
Trade accounts receivable |
95 |
(131) |
||||
Inventories |
(130) |
(269) |
||||
Secured advances to suppliers |
172 |
38 |
||||
Trade accounts payable and accrued liabilities |
50 |
560 |
||||
Advances on sales |
11 |
36 |
||||
Net unrealized gain (loss) on derivative contracts |
105 |
(84) |
||||
Margin deposits |
(5) |
199 |
||||
Marketable securities |
(128) |
76 |
||||
Other, net |
(69) |
(78) |
||||
Cash provided by (used for) operating activities |
1,006 |
1,904 |
||||
Investing Activities |
||||||
Payments made for capital expenditures |
(662) |
(784) |
||||
Acquisitions of businesses (net of cash acquired) |
(369) |
(34) |
||||
Settlement of net investment hedges |
(20) |
(375) |
||||
Proceeds from investments |
961 |
802 |
||||
Payments for investments |
(944) |
(553) |
||||
Payments for investments in affiliates |
(126) |
(40) |
||||
Other, net |
(2) |
58 |
||||
Cash provided by (used for) investing activities |
(1,162) |
(926) |
||||
Financing Activities |
||||||
Net borrowings (repayments) of short-term debt |
42 |
(255) |
||||
Net proceeds (repayments) of long-term debt |
44 |
316 |
||||
Repurchases of common shares |
— |
(200) |
||||
Proceeds from the exercise of options for common shares |
59 |
— |
||||
Dividends paid |
(297) |
(282) |
||||
Other, net |
(28) |
(67) |
||||
Cash provided by (used for) financing activities |
(180) |
(488) |
||||
Effect of exchange rate changes on cash and cash equivalents |
3 |
33 |
||||
Net increase (decrease) in cash and cash equivalents |
(333) |
523 |
||||
Cash and cash equivalents, beginning of period |
934 |
411 |
||||
Cash and cash equivalents, end of period |
$ |
601 |
$ |
934 |
This earnings release contains certain "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934. Bunge has reconciled these non-GAAP financial measures to the most directly comparable U.S. GAAP measures below. These measures may not be comparable to similarly titled measures used by other companies.
Total Segment EBIT and Total Segment EBIT, adjusted
Bunge uses total segment earnings before interest and taxes ("Total Segment EBIT") to evaluate Bunge's operating performance. Total Segment EBIT is the aggregate of each of our five reportable segments' earnings before interest and taxes. Total Segment EBIT, adjusted, is calculated by excluding certain gains and charges as described above in "Additional Financial Information" from Total Segment EBIT. Total Segment EBIT and Total Segment EBIT, adjusted are non-GAAP financial measures and are not intended to replace net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Bunge's management believes these non-GAAP measures are a useful measure of its reportable segments' operating profitability, since the measures allow for an evaluation of segment performance without regard to their financing methods or capital structure. For this reason, operating performance measures such as these non-GAAP measures are widely used by analysts and investors in Bunge's industries. These non-GAAP measures are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to net income (loss) or any other measure of consolidated operating results under U.S. GAAP.
Below is a reconciliation of Net income attributable to Bunge to Total Segment EBIT, adjusted:
Quarter Ended |
Year Ended | |||||||||||
(US$ in millions) |
2017 |
2016 |
2017 |
2016 | ||||||||
Net income (loss) attributable to Bunge |
$ |
(60) |
$ |
271 |
$ |
160 |
$ |
745 |
||||
Interest income |
(9) |
(14) |
(38) |
(51) |
||||||||
Interest expense |
72 |
45 |
263 |
234 |
||||||||
Income tax expense (benefit) |
54 |
102 |
56 |
220 |
||||||||
(Income) loss from discontinued operations, net of tax |
— |
1 |
— |
9 |
||||||||
Noncontrolling interest share of interest and tax |
(2) |
(2) |
(5) |
(14) |
||||||||
Total Segment EBIT |
55 |
403 |
436 |
1,143 |
||||||||
Certain (gains) and charges |
100 |
(41) |
141 |
(43) |
||||||||
Total Segment EBIT, adjusted |
$ |
155 |
$ |
362 |
$ |
577 |
$ |
1,100 |
Net income (loss) per common share from continuing operations-diluted, adjusted, excludes certain gains and charges and discontinued operations and is a non-GAAP financial measure. This measure is not a measure of earnings per common share-diluted, the most directly comparable U.S. GAAP financial measure. It should not be considered as an alternative to earnings per share-diluted or any other measure of consolidated operating results under U.S. GAAP. Net income (loss) per common share from continuing operations-diluted, adjusted is a useful measure of the Company's profitability.
Below is a reconciliation of Net income attributable to Bunge to Net income (loss) - adjusted (excluding certain gains & charges and discontinued operations).
Quarter Ended |
Year Ended | |||||||||||||||
(US$ in millions, except per share data) |
2017 |
2016 |
2017 |
2016 | ||||||||||||
Net Income (loss) attributable to Bunge |
$ |
(60) |
$ |
271 |
$ |
160 |
$ |
745 |
||||||||
Adjusted for certain gains and charges: |
||||||||||||||||
Severance, employee benefit, and other costs |
52 |
— |
61 |
— |
||||||||||||
Impairment charges |
24 |
63 |
41 |
71 |
||||||||||||
Sugar restructuring charges |
6 |
3 |
22 |
3 |
||||||||||||
Indirect tax credits |
(8) |
— |
(16) |
— |
||||||||||||
Acquisition costs |
9 |
— |
9 |
— |
||||||||||||
Brazilian wheat import tax contingency |
— |
— |
— |
(9) |
||||||||||||
Gain on disposition of equity interests/subsidiaries |
(6) |
(86) |
(6) |
(86) |
||||||||||||
Provision for long-term receivables in Brazil |
— |
8 |
— |
8 |
||||||||||||
Interest and Income tax charges (benefits) |
86 |
(5) |
37 |
(44) |
||||||||||||
Adjusted Net Income attributable to Bunge |
103 |
254 |
308 |
688 |
||||||||||||
Discontinued Operations |
— |
1 |
— |
9 |
||||||||||||
Other Redeemable Obligations |
— |
— |
— |
(2) |
||||||||||||
Convertible Preference shares dividends |
(9) |
— |
(34) |
— |
||||||||||||
Net income (loss) - adjusted (excluding certain gains & |
$ |
94 |
$ |
255 |
$ |
274 |
$ |
695 |
||||||||
Weighted-average common shares outstanding - diluted |
141 |
148 |
141 |
148 |
||||||||||||
Net income (loss) per common share - diluted, adjusted |
$ |
0.67 |
$ |
1.70 |
$ |
1.94 |
$ |
4.67 |
Below is a reconciliation of Net income (loss) per common share from continuing operations - diluted, adjusted (excluding certain gains & charges and discontinued operations) to Net income (loss) per common share–diluted:
Quarter Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Continuing operations: |
|||||||||||||||
Net income (loss) per common share - diluted adjusted |
$ |
0.67 |
$ |
1.70 |
$ |
1.94 |
$ |
4.67 |
|||||||
Certain gains & charges (see Additional Financial Information |
(1.15) |
0.13 |
(1.05) |
0.40 |
|||||||||||
Net income (loss) per common share - continuing operations |
(0.48) |
1.83 |
0.89 |
5.07 |
|||||||||||
Discontinued operations: |
— |
(0.01) |
— |
(0.06) |
|||||||||||
Net income (loss) per common share - diluted |
$ |
(0.48) |
$ |
1.82 |
$ |
0.89 |
$ |
5.01 |
The following table summarizes the costs incurred as part of the Global Competitiveness Program and other associated cost reduction and strategic initiatives.
Quarter Ended December 31, 2017 |
Year Ended December 31, 2017 | ||||||||||||||||||
Severance |
Other |
Total Costs |
Severance |
Other |
Total Costs | ||||||||||||||
Global Competitiveness Program: |
|||||||||||||||||||
Agribusiness |
$ |
23 |
$ |
7 |
$ |
30 |
$ |
27 |
$ |
10 |
$ |
37 |
|||||||
Edible Oil Products |
6 |
2 |
8 |
6 |
4 |
10 |
|||||||||||||
Milling Products |
1 |
1 |
2 |
2 |
1 |
3 |
|||||||||||||
Sugar & Bioenergy |
1 |
2 |
3 |
1 |
3 |
4 |
|||||||||||||
Fertilizer |
1 |
— |
1 |
1 |
— |
1 |
|||||||||||||
Costs included in Selling, general |
$ |
32 |
$ |
12 |
$ |
44 |
$ |
37 |
$ |
18 |
$ |
55 |
|||||||
Other associated cost reduction and |
|||||||||||||||||||
Costs included in Cost of goods sold |
$ |
20 |
$ |
— |
$ |
20 |
$ |
22 |
$ |
— |
$ |
22 |
|||||||
Total GCP and Other costs |
$ |
52 |
$ |
12 |
$ |
64 |
$ |
59 |
$ |
18 |
$ |
77 |
2017 baseline total SG&A was $1.45 billion. There was $100 million of SG&A determined not to be addressable through the GCP, leaving 2017 addressable baseline SG&A of $1.35 billion ("Addressable Baseline"). The items that are not addressable by the GCP relate to costs other than direct spending and personnel costs, such as amortization, bad debt charges and recoveries and financing fees and taxes.
GCP savings are determined by comparing Adjusted Actual Addressable SG&A to the Addressable Baseline. Adjusted Actual Addressable SG&A is equal to the total reported SG&A minus the items not addressable by the GCP, plus or minus items such as:
We expect to reduce Actual Addressable SG&A from the Addressable Baseline level of $1.35 billion to $1.1 billion by 2020, achieving $250 million in run-rate savings by the end of 2019.
(1) Agribusiness: | |
2017 fourth quarter EBIT includes charges related to the Company's Global Competitiveness Program of $(30) million [$(23) million for severance and other employee benefit costs and $(7) million for other program costs], all of which was included in Selling, general and administrative expenses. 2017 fourth quarter EBIT also includes $(12) million for severance and other employee benefits related to other industrial initiatives recorded in Cost of goods sold. Additionally, $(19) million of impairment charges [comprised of $(10) million associated with the sale of feedmills in China and $(9) million related to port assets in Poland] and a $9 million gain on the sale of a subsidiary in Brazil were recorded. Of these amounts, $(3) million was included within Selling, general and administrative expenses. | |
2016 fourth quarter EBIT includes $90 million and $30 million gains related to disposition of equity interests of operations in Brazil and Asia, respectively, as well as a $(15) million impairment charge related to an equity investment in Asia. Of these amounts, $0 million was included within Selling, general and administrative expenses. | |
2017 full year EBIT includes charges related to the Company's Global Competitiveness Program of $(37) million [$(27) million for severance and other employee benefit costs and $(10) million for other program costs], all of which was included in Selling, general and administrative expenses. 2017 full year EBIT also includes $(12) million for severance and other employee benefits related to other industrial initiatives recorded in Cost of goods sold. Additionally, $(36) million of impairment charges [comprised of $(13) million for our palm oil plantation joint venture, $(4) million for on intangible assets related to patents, $(10) million associated with the sale of feedmills in China, and $(9) million related to port assets in Poland] and a $9 million gain on the sale of a subsidiary in Brazil were recorded. Of these amounts, $(7) million was included within Selling, general and administrative expenses. | |
2016 full year EBIT includes a $90 million and $30 million gain related to disposition of equity interests of operations in Brazil and Asia, respectively, as well as a $(15) million impairment charge related to an equity investment in Asia and $(12) million impairment charge related to remaining unamortized carrying value of certain patents in the United States. Of these amounts, $0 million was included within Selling, general and administrative expenses. | |
(2) Edible Oil Products: | |
2017 fourth quarter EBIT includes charges related to the Company's Global Competitiveness Program of $(8) million [$(6) million for severance and other employee benefit costs and $(2) million for other program costs], all of which was included in Selling, general and administrative expenses. 2017 fourth quarter EBIT also includes $(5) million for severance and other employee benefits related to other industrial initiatives recorded in Cost of goods sold. Additionally, $(9) million of acquisition costs related to Loders were incurred, all of which were included within Selling, general and administrative expenses. | |
2017 full year EBIT includes charges related to the Company's Global Competitiveness Program of $(10) million [$(6) million for severance and other employee benefit costs and $(4) million for other program costs], all of which was included in Selling, general and administrative expenses. 2017 full year EBIT also includes $(6) million for severance and other employee benefits related to other industrial initiatives recorded in Cost of goods sold. Additionally, $(1) million of impairment charges for intangible assets related to patents, and $(9) million of acquisition costs related to Loders were incurred. Of these amounts, $(10) million was included within Selling, general and administrative expenses. | |
(3) Milling Products: | |
2017 fourth quarter EBIT includes charges related to the Company's Global Competitiveness Program of $(2) million [$(1) million for severance and other employee benefit costs and $(1) million for other program costs], all of which was included in Selling, general and administrative expenses. 2017 fourth quarter EBIT also includes $(3) million for severance and other employee benefits related to other industrial initiatives recorded in Cost of goods sold. | |
2017 full year EBIT includes charges related to the Company's Global Competitiveness Program of $(3) million [$(2) million for severance and other employee benefit costs and $(1) million for other program costs], all of which was included in Selling, general and administrative expenses. 2017 full year EBIT also includes $(4) million for severance and other employee benefits related to other industrial initiatives recorded in Cost of goods sold. Additionally, $(1) million of impairment charges for intangible assets related to patents were incurred. Of these amounts, $(1) million was included within Selling, general and administrative expenses. | |
2016 full year EBIT includes a gain of $14 million related to a wheat import tax contingency settlement in Brazil. Of these amounts, $0 million was included within Selling, general and administrative expenses. | |
(4) Sugar & Bioenergy: | |
2017 fourth quarter EBIT includes charges related to the Company's Global Competitiveness Program of $(3) million [$(1) million for severance and other employee benefit costs and $(2) million for other program costs], all of which was included in Selling, general and administrative expenses. Additionally, $(4) million of impairment charges related to an equity investment in Brazil were incurred. | |
2017 fourth quarter and full year charges also include Sugar restructuring charges of $(6) million and $(22) million, that were recorded in the quarter and year ended December 31, 2017, respectively. Of these amounts, $0 million and $(1) million, were included within Selling, general and administrative expenses during the quarter and year ended December 31, 2017, respectively. EBIT for the fourth quarter and year ended December 31, 2017 also includes gains of $8 million and $16 million, respectively, related to indirect tax credits. Of these amounts, $0 million was included within Selling, general and administrative expenses. | |
2017 full year EBIT includes charges related to the Company's Global Competitiveness Program of $(4) million [$(1) million for severance and other employee benefit costs and $(3) million for other program costs], all of which was included in Selling, general and administrative expenses]. Additionally, $(5) million of impairment charges were incurred [comprised of $(4) million related to an equity investment in Brazil and $(1) million for intangible assets related to patents]. Of these amounts, $(1) million was included within Selling, general and administrative expenses. | |
2016 fourth quarter and full year EBIT includes a $(44) million impairment charge of an equity investment in Brazil, an $(8) million provision for long-term receivables in Brazil, and a $(3) million restructuring charge. | |
(5) Fertilizer: | |
2017 fourth quarter and full year EBIT includes charges related to the Company's Global Competitiveness Program of $(1) million for severance and other employee benefit costs, all of which was included in Selling, general and administrative expenses. 2017 fourth quarter and full year EBIT also includes $(13) million for severance and other employee benefits related to other industrial initiatives recorded in Cost of goods sold. Additionally, $(2) million of impairment and other charges related to the closure of a plant were incurred. Of these amounts, $0 million was included within Selling, general and administrative expenses. | |
2016 fourth quarter and full year EBIT includes a $(9) million impairment charge related to property, plant and equipment in Argentina. | |
(6) Interest and Income Taxes: | |
2017 fourth quarter income tax benefits (charges) include charges for tax reform impacts in the U.S. and Argentina of $(66) million, and valuation allowances in Europe offset by a valuation allowance release in Asia, for a net charge of $(20) million. Additionally, in the second quarter, a benefit of $32 million for the favorable resolution of an uncertain tax position in Asia and a benefit of $17 million as a result of a tax election in South America were recorded. | |
2016 interest and income tax benefits (charges) of $(44) million include benefits of $60 million, net of reserves, relates to a change in a tax election in North America, recorded in the first quarter, $11 million tax credits in Europe recorded in the second quarter and $19 million to Sugar & Bioenergy deferred tax valuation allowance release recorded in the fourth quarter, offset by a charges of $(32) million and $(24) million for uncertain tax positions related to Asia, recorded in the first and fourth quarters, respectively. Additionally, 2016 interest expense and income tax benefits (charges) includes pre-tax interest benefits of $16 million ($10 million after tax) related to the reversal of interest related to ICMS tax credits in Brazil resulting from a tax amnesty program recorded in the fourth quarter. |
Notes to Financial Tables: | ||||||||
(7) |
See Definition and Reconciliation of Non-GAAP Measures. | |||||||
(8) |
A reconciliation of Net income (loss) attributable to Bunge to Net income (loss) is as follows: | |||||||
Year Ended | ||||||||
2017 |
2016 | |||||||
Net income (loss) attributable to Bunge |
$ |
160 |
$ |
745 |
||||
EBIT attributable to noncontrolling interest |
19 |
36 |
||||||
Noncontrolling interest share of interest and tax |
(5) |
(14) |
||||||
Net income (loss) |
$ |
174 |
$ |
767 |
||||
(9) |
Approximately 4 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the quarter and year ended December 31, 2017. Additionally, approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares were not dilutive and not included in the weighted-average number of shares outstanding for the quarter and year ended December 31, 2017. | |||||||
Approximately 4 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the quarter and year ended December 31, 2016. | ||||||||
(10) |
Includes readily marketable inventories of $4,056 million and $3,855 million at December 31, 2017 and 2016, respectively. Of these amounts, $2,767 million and $2,657 million, respectively, can be attributable to merchandising activities. | |||||||
(11) |
The Oilseed business included in our Agribusiness segment consists of our global activities related to the crushing of oilseeds (including soybeans, canola, rapeseed and sunflower seed) into protein meals and vegetable oils; the trading and distribution of oilseeds and oilseed products; and biodiesel production, which is primarily conducted through joint ventures. | |||||||
The Grains business included in our Agribusiness segment consists primarily of our global grain origination activities, which principally conduct the purchasing, cleaning, drying, storing and handling of corn, wheat, barley, rice and oilseeds at our network of grain elevators; the logistical services for distribution of these commodities to our customer markets through our port terminals and transportation assets (including trucks, railcars, barges and ocean vessels); and financial services and activities for customers from whom we purchase commodities and other third parties. |
View original content:http://www.prnewswire.com/news-releases/bunge-reports-fourth-quarter-2017-results-300598414.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y., Jan. 17, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) will announce its results for the quarter ended December 31, 2017, on Wednesday, February 14, 2018, prior to the market opening. The company's management will also host a conference call at 8:00 a.m. EST to discuss the results. A slide presentation to accompany the discussion will be posted on www.bunge.com.
To listen to the call, please dial (877) 883-0383. If you are located outside the United States or Canada, dial (412) 902-6506. Please dial in five to 10 minutes before the scheduled start time. When prompted, enter confirmation code 2101973. The call will also be webcast live at www.bunge.com.
To access the webcast, go to "Webcasts and presentations" in the "Investors" section of the company's website. Select "Q4 2017 Bunge Limited Conference Call" and follow the prompts. Please go to the website at least 15 minutes prior to the call to register and download any necessary audio software.
A replay of the call will be available later in the day on February 14, 2018, continuing through March 14, 2018. To listen to it, please dial (877) 344-7529 in the United States, (855) 669-9658 in Canada, or (412) 317-0088 in other locations. When prompted, enter confirmation code 10115948. A replay will also be available in "Past events" at "Webcasts and presentations" in the "Investors" section of the company's website.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
View original content:http://www.prnewswire.com/news-releases/bunge-limited-schedules-fourth-quarter-2017-earnings-release-and-conference-call-300583581.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y., Jan. 3, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) today announced that Vinita Bali has been appointed to its Board of Directors, effective immediately.
Ms. Bali, 62, served as Chief Executive Officer of Britannia Industries, a publicly listed food company in India, from 2005 to 2014. Prior to that, she was Head of the Business Strategy practice in the U.S. at the Zyman Group, a consulting firm. She started her career in India at a Tata Group company in 1977, and joined Cadbury India in 1980, subsequently working for Cadbury in the United Kingdom, Nigeria and South Africa until 1994. From 1994 to 2003, she held senior positions in marketing and general management at The Coca-Cola Company in the U.S. and Latin America, becoming Global Head of Corporate Strategy in 2001.
Currently, Ms. Bali serves as an advisory board member of PwC India, and is a non-executive director on the boards of Smith & Nephew plc, as well as several Indian companies, including CRISIL Ltd., Titan Industries Ltd. and Syngene International Limited. She is a former non-executive director of Syngenta International AG. She also chairs the Board of the Global Alliance for Improved Nutrition (GAIN).
"Vinita is an accomplished former CEO in the food and ingredients industry who brings directly relevant experience to our Board of Directors," said L. Patrick Lupo, Chairman, Bunge Limited. "We will greatly benefit from her depth of industry knowledge and emerging markets experience as we continue to grow our Food & Ingredients business."
Ms. Bali holds an MBA from the Jamnalal Bajaj Institute of Management Studies at the University of Mumbai, and a BA in Economics from the University of Delhi.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
View original content:http://www.prnewswire.com/news-releases/vinita-bali-to-join-bunge-limited-board-of-directors-300577080.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y., Jan. 3, 2018 /PRNewswire/ -- Bunge Limited (NYSE: BG) today announced that Vinita Bali has been appointed to its Board of Directors, effective immediately.
Ms. Bali, 62, served as Chief Executive Officer of Britannia Industries, a publicly listed food company in India, from 2005 to 2014. Prior to that, she was Head of the Business Strategy practice in the U.S. at the Zyman Group, a consulting firm. She started her career in India at a Tata Group company in 1977, and joined Cadbury India in 1980, subsequently working for Cadbury in the United Kingdom, Nigeria and South Africa until 1994. From 1994 to 2003, she held senior positions in marketing and general management at The Coca-Cola Company in the U.S. and Latin America, becoming Global Head of Corporate Strategy in 2001.
Currently, Ms. Bali serves as an advisory board member of PwC India, and is a non-executive director on the boards of Smith & Nephew plc, as well as several Indian companies, including CRISIL Ltd., Titan Industries Ltd. and Syngene International Limited. She is a former non-executive director of Syngenta International AG. She also chairs the Board of the Global Alliance for Improved Nutrition (GAIN).
"Vinita is an accomplished former CEO in the food and ingredients industry who brings directly relevant experience to our Board of Directors," said L. Patrick Lupo, Chairman, Bunge Limited. "We will greatly benefit from her depth of industry knowledge and emerging markets experience as we continue to grow our Food & Ingredients business."
Ms. Bali holds an MBA from the Jamnalal Bajaj Institute of Management Studies at the University of Mumbai, and a BA in Economics from the University of Delhi.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
View original content:http://www.prnewswire.com/news-releases/vinita-bali-to-join-bunge-limited-board-of-directors-300577080.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y., Dec. 7, 2017 /PRNewswire/ -- Bunge Limited (NYSE: BG) today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.46 per common share. The dividend is payable on March 2, 2018 to shareholders of record on February 16, 2018.
The company also declared a quarterly cash dividend of $1.21875 per share on its 4.875% cumulative convertible perpetual preference shares, payable on March 1, 2018 to shareholders of record on February 15, 2018.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
View original content:http://www.prnewswire.com/news-releases/bunge-limited-declares-dividends-on-common-and-preference-shares-300568684.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y., Nov. 15, 2017 /PRNewswire/ -- As part of its ongoing Competitiveness Program, Bunge Limited (NYSE: BG) today announced organizational and leadership changes designed to streamline its operating model, further leverage its global scale and increase its focus on customers and growth.
In simplifying its structure from five operating companies to three regions – North America, South America and Europe/Asia – Bunge announced the following executive leadership appointments, effective January 1, 2018:
All three executives will report to Soren Schroder, CEO of Bunge Limited.
The three operating regions will be supported by centralized global corporate functions, including Finance, HR, IT and Legal. Global heads of Agribusiness, Food & Ingredients and Sugar & Bioenergy business segments will lead strategy, value chain maximization, cross regional customer relationships and risk management. The following executives remain members of the Company's Executive Committee:
Soren Schroder said, "This new structure allows us to leverage our scale while remaining close to customers and local market opportunities. The proven executives who will lead our regions and segments will work together with our global functional leaders to achieve the objectives of the Competitiveness Program, including removing operational complexity, reducing costs, and maximizing shareholder value."
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
View original content:http://www.prnewswire.com/news-releases/bunge-announces-organizational-and-leadership-team-changes-300557045.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y., Nov. 8, 2017 /PRNewswire/ -- Bunge Limited (NYSE: BG) today announced that Soren Schroder, CEO, will address the Morgan Stanley Global Chemicals and Agriculture Conference in Boston at 11:45 a.m. EST on Tuesday, November 14, 2017.
The presentation will be webcast live on www.bunge.com.
Webcast Information
To access the webcast, go to "Webcasts and presentations" in the "Investors" section of the company's website. Select "Morgan Stanley Global Chemicals and Agriculture Conference" and follow the prompts. A replay will be available at "Past Events" in the "Investors" section of the website.
About Bunge Limited
Bunge Limited (www.bunge.com), (NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
View original content:http://www.prnewswire.com/news-releases/bunge-limited-to-address-the-morgan-stanley-global-chemicals-and-agriculture-conference-300552155.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y., Nov. 1, 2017 /PRNewswire/ -- Bunge Limited (NYSE: BG)
Quarter Ended |
Nine Months Ended | |||||||||||||
US$ in millions, except per share data |
9/30/2017 |
9/30/2016 |
9/30/2017 |
9/30/2016 | ||||||||||
Net income (loss) attributable to Bunge |
$ |
92 |
$ |
118 |
$ |
220 |
$ |
474 |
||||||
Net income (loss) per common share from continuing |
$ |
0.59 |
$ |
0.79 |
$ |
1.38 |
$ |
3.24 |
||||||
Net income (loss) per common share from continuing |
$ |
0.75 |
$ |
0.73 |
$ |
1.28 |
$ |
2.98 |
||||||
Total Segment EBIT (a) |
$ |
175 |
$ |
213 |
$ |
381 |
$ |
740 |
||||||
Certain gains & (charges) (b) |
$ |
(29) |
$ |
14 |
$ |
(41) |
$ |
2 |
||||||
Total Segment EBIT, adjusted (a) |
$ |
204 |
$ |
199 |
$ |
422 |
$ |
738 |
||||||
Agribusiness (c) |
$ |
127 |
$ |
83 |
$ |
254 |
$ |
545 |
||||||
Oilseeds |
$ |
88 |
$ |
79 |
$ |
182 |
$ |
273 |
||||||
Grains |
$ |
39 |
$ |
4 |
$ |
72 |
$ |
272 |
||||||
Food & Ingredients (d) |
$ |
64 |
$ |
72 |
$ |
153 |
$ |
159 |
||||||
Sugar & Bioenergy |
$ |
8 |
$ |
35 |
$ |
11 |
$ |
21 |
||||||
Fertilizer |
$ |
5 |
$ |
9 |
$ |
4 |
$ |
13 |
(a) |
Total Segment earnings before interest and tax ("Total Segment EBIT"); Total Segment EBIT, adjusted; net income (loss) per common share from continuing operations-diluted, adjusted funds from operations and ROIC are non-GAAP financial measures. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables attached to this press release and the accompanying slide presentation posted on Bunge's website. | ||||||||||||||
(b) |
Certain gains & (charges) included in Total Segment EBIT. See Additional Financial Information for detail. | ||||||||||||||
(c) |
See footnote 10 of Additional Financial Information for a description of the Oilseeds and Grains businesses in Bunge's Agribusiness segment. | ||||||||||||||
(d) |
Includes Edible Oil Products and Milling Products segments. |
Soren Schroder, Bunge's Chief Executive Officer, commented, "Our earnings improved sequentially and year-over-year, although they continued to be impacted by market and industry headwinds. As a result, we are reducing our earnings guidance for the year in Agribusiness and Sugar & Bioenergy. At the same time, we are making good progress towards our strategic objectives of creating a more balanced business, managing those aspects of our operations that we can control and taking proactive steps to ensure we remain agile in responding to changing market conditions."
He continued: "Consistent with our strategy, in September we announced the acquisition of Loders Croklaan, which is expected to close in the first half of next year. This transaction will accelerate our growth in higher margin value-added products and it gives us an unmatched global footprint with best-in-class innovation capabilities. In addition, I am pleased with our progress to date in reducing costs and increasing efficiencies. In the quarter we achieved $30 million of industrial cost savings bringing our year-to-date savings to $73 million against our full year target of $100 million. We also expect to meet or exceed the $15 million 2017 target set out in our Competitiveness Program, which is expected to reduce overhead costs by $250 million by the end of 2019."
He added, "Looking ahead, there are some bright spots in the market. Global soy crush margins are off their lows as utilization rates have been adjusting to balance the oversupply of meal, and we have entered the Northern Hemisphere crop season where U.S. crush margins are currently strong. In Food & Ingredients, we continue to grow value-added sales and are very encouraged by the traction we have made with key accounts, particularly in Edible Oils. In Milling, our volumes in Mexico are improving and the smaller wheat crops in Brazil and Argentina should give us an advantage with our integrated footprint. These recent developments, and our disciplined focus on managing our business, are expected to lead to improved results in the fourth quarter and will provide good momentum as we enter 2018."
Agribusiness
While both Grains and Oilseeds results were higher than last year, overall margins remained weak, reflecting excess global supplies, spot global customers and pressure on farmer margins.
In Grains, higher origination results were driven by improvements in Brazil and Argentina, which benefited from a spike in farmer selling in July as local prices increased on weather concerns in the U.S. and the devaluation of the real and peso. Brazil also benefited from strong safrinha corn exports. Origination results declined in the U.S., due to reduced exports driven by the higher volume out of South America and temporarily higher logistics costs due to weather. Risk management strategies were effective; however, margins in global grain trading & distribution remained weak due to competitive pressures and limited dislocation opportunities.
In Oilseeds, overall global structural crush margins were compressed during the quarter, reflecting farmer retention and excess meal supply. Compared to last year, soy processing results improved, driven by higher results in the U.S., Brazil and China, all of which benefited from higher volumes and effective risk management. Partially offsetting these improvements were lower soy crush results in Argentina and Europe. Softseed processing results were lower than last year primarily due to lower margins in Europe from higher seed prices. Margins in Canada were comparable to last year as farmers held on to their seeds ahead of a record harvest. Oilseed trading & distribution performed better than last year, reflecting increased volumes and higher margins from effective risk management. Increased Oilseed volumes were primarily driven by soy crush in the U.S., Brazil and our recently acquired plants in Europe, as well as our trading & distribution operations.
Edible Oil Products
Results improved in most regions, driven by higher margins and lower costs. In North America, lower costs and higher margins in Canada more than offset softer U.S. refining margins. In Brazil, higher margins and lower SG&A costs more than offset decreased volume, as consumer demand remained soft, but showed some signs of improvement. Better results in Asia were driven by improved performance in both China and India with increased sales of higher value products. Western Europe performed better than in the prior year, including acquisitions, but this was offset by weak retail sales in Eastern Europe. Increased segment SG&A reflected recent acquisitions.
Milling Products
The decline in segment results was due to our Brazilian business, where volumes and margins were negatively impacted by consumers trading down on value and where the small bakery channel continued to suffer a year-over-year reduction in demand. Also impacting results in Brazil was aggressive pricing by small mills, which increased production in response to the above average Brazilian wheat crop. In Mexico, higher earnings reflected lower costs and a slight increase in volume from sales to new customers. This was the second straight quarter of volume growth in Mexico, which has returned to 2016 run rate levels. In the U.S., corn milling benefited from both higher volumes and margins.
Sugar & Bioenergy
Results were lower in sugarcane milling, primarily due to lower ethanol prices and higher industrial costs, which more than offset higher sucrose content in the cane. While Brazilian ethanol prices increased in the quarter, they remained below levels seen last year. We remain committed to reducing exposure to sugarcane milling and are in the final stages of completing its financial separation. We continue to explore all options to maximize shareholder value, while improving operations through cost and productivity initiatives. The business is performing well despite the challenging price environment.
Trading & distribution results in the quarter were negative, driven by weak distribution margins and a lack of market volatility. As a result of the very competitive environment, we are in the process of restructuring the business. Results in the quarter were also impacted by a $3 million loss from our renewable oils joint venture.
Fertilizer
Despite lower costs, earnings decreased in the quarter due to lower margins in our Argentine fertilizer business as a result of structural challenges of our locally produced nitrogen products competing with lower-priced international imports.
Competitiveness Program
The Competitiveness Program was announced in July 2017. The program is expected to rationalize Bunge's cost structure and reengineer the way we operate, reducing overhead costs by approximately $250 million once fully implemented by the end of 2019. The company will achieve these cost savings by adopting a zero-based budgeting process that will target costs in specific budget categories, simplifying its organizational structure, streamlining processes and consolidating back office functions globally to improve efficiency and scalability.
The company is on track to meet or exceed its 2017 savings target of $15 million and has incurred $13 million of severance and program-related costs through the end of third quarter.
Cash Flow
Cash used for operations in the nine months ended September 30, 2017 was $302 million compared to cash generated of $635 million in the same period last year. The year-over-year variance primarily reflects negative changes in working capital and lower earnings. Trailing four-quarter adjusted funds from operations was $1.2 billion as of the quarter ended September 30, 2017.
Income Taxes
Excluding approximately $49 million of notable tax benefits, the effective tax rate for the nine months ended September 30, 2017 was approximately 22%.
Overall, we expect sequential earnings improvement in the fourth quarter, which will provide positive momentum as we enter 2018. Agribusiness should benefit with the shift to Northern Hemisphere harvests where the large U.S. soy crop is supporting strong domestic crush margins and export flows. However, global oilseed crush and distribution margins continue to track below earlier expectations, and as a result, we are reducing our full-year 2017 EBIT range to $425 million to $500 million.
In Food & Ingredients, we continue to expect full-year 2017 EBIT of $210 million to $230 million driven by a strong year-over-year improvement in Edible Oils.
Sugar & Bioenergy is expected to show strong sequential improvement as the fourth quarter is typically the strongest quarter, as Brazilian ethanol inventories normally tighten during this period. However, we are reducing our full-year EBIT range to $45 million to $55 million, reflecting lower third-quarter results, lower-than-expected Brazilian ethanol prices and reduced activity in trading & distribution.
In Fertilizer, we continue to expect full-year 2017 EBIT of approximately $25 million. The fourth quarter is typically the strongest quarter, as Argentine farmers purchase crop inputs for planting.
Expectations for the full-year 2017 tax rate, excluding notables, remains 18% to 22%, reflecting forecasted earnings mix.
Looking ahead to 2018, we will continue to focus on the factors in our business that can be controlled. Savings from the Competitiveness Program are expected to total $100 million with an additional $80 million of savings from industrial initiatives. Demand for soy crush continues to grow, and after a difficult 2017 in South America, we expect the industry to approach harvests in 2018 with increased flexibility. Expected growth in our Food & Ingredients business will continue to improve the balance of our business. In Sugar & Bioenergy, where our milling business has performed well, we expect continued efficiency improvements in our agricultural operations and the restructuring of our global sugar trading & distribution business to position the segment for an improved year, assuming normal weather patterns.
Bunge Limited's management will host a conference call at 8:00 a.m. EDT on Wednesday, November 1, 2017 to discuss the company's results.
Additionally, a slide presentation to accompany the discussion of results will be posted on www.bunge.com.
To listen to the call, please dial (877) 883-0383. If you are located outside the United States or Canada, dial (412) 902-6506. Please dial in five to 10 minutes before the scheduled start time. When prompted, enter confirmation code 8162299. The call will also be webcast live at www.bunge.com.
To access the webcast, go to "Webcasts and presentations" in the "Investors" section of the company's website. Select "Q3 2017 Bunge Limited Conference Call" and follow the prompts. Please go to the website at least 15 minutes prior to the call to register and download any necessary audio software.
A replay of the call will be available later in the day on November 1, 2017, continuing through December 1, 2017. To listen to it, please dial (877) 344-7529 in the United States, (855) 669-9658 in Canada, or (412) 317-0088 in other locations. When prompted, enter confirmation code 10112670. A replay will also be available in "Past events" at "Webcasts and presentations" in the "Investors" section of the company's website.
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Bunge Limited (www.bunge.com), NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
The following tables provides a summary of certain gains and charges that may be of interest to investors. The table includes a description of these items and their effect on net income (loss) attributable to Bunge, earnings per share diluted and total segment EBIT for the quarters and nine months ended September 30, 2017 and 2016.
(US$ in millions, except per share data) |
Net Income (loss) Attributable to Bunge |
Earnings Per Share Diluted |
Total Segment EBIT (6) | |||||||||||||||
Quarter Ended September 30, |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 | ||||||||||||
Continuing operations: |
||||||||||||||||||
Agribusiness: (1) |
$ |
(19) |
$ |
— |
$ |
(0.14) |
$ |
— |
$ |
(24) |
$ |
— |
||||||
Global Competitiveness Program |
(4) |
— |
(0.03) |
— |
(7) |
— |
||||||||||||
Impairment charges |
(15) |
— |
(0.11) |
— |
(17) |
— |
||||||||||||
Edible Oil Products: (2) |
$ |
(3) |
$ |
— |
$ |
(0.02) |
$ |
— |
$ |
(4) |
$ |
— |
||||||
Global Competitiveness Program |
(2) |
— |
(0.01) |
— |
(3) |
— |
||||||||||||
Impairment charges |
(1) |
— |
(0.01) |
— |
(1) |
— |
||||||||||||
Milling Products: (3) |
$ |
(2) |
$ |
9 |
$ |
(0.02) |
$ |
0.06 |
$ |
(3) |
$ |
14 |
||||||
Global Competitiveness Program |
(2) |
— |
(0.02) |
— |
(2) |
— |
||||||||||||
Impairment charges |
— |
— |
— |
— |
(1) |
— |
||||||||||||
Brazilian wheat import tax contingency |
— |
9 |
— |
0.06 |
— |
14 |
||||||||||||
Sugar & Bioenergy: (4) |
$ |
2 |
$ |
— |
$ |
0.02 |
$ |
— |
$ |
2 |
$ |
— |
||||||
Global Competitiveness Program |
(1) |
— |
— |
— |
(1) |
— |
||||||||||||
Impairment charges |
(1) |
— |
(0.01) |
— |
(1) |
— |
||||||||||||
Sugar restructuring charges |
(4) |
— |
(0.02) |
— |
(4) |
— |
||||||||||||
Indirect tax credits |
8 |
— |
0.05 |
— |
8 |
— |
||||||||||||
Total |
$ |
(22) |
$ |
9 |
$ |
(0.16) |
$ |
0.06 |
$ |
(29) |
$ |
14 |
(US$ in millions, except per share data) |
Net Income (loss) Attributable to Bunge |
Earnings Per Share Diluted |
Total Segment EBIT (6) | |||||||||||||||
Nine Months Ended September 30, |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 | ||||||||||||
Continuing operations: |
||||||||||||||||||
Agribusiness: (1) |
$ |
(19) |
$ |
(8) |
$ |
(0.14) |
$ |
(0.05) |
$ |
(24) |
$ |
(12) |
||||||
Global Competitiveness Program |
(4) |
— |
(0.03) |
— |
(7) |
— |
||||||||||||
Impairment charges |
(15) |
(8) |
(0.11) |
(0.05) |
(17) |
(12) |
||||||||||||
Edible Oil Products: (2) |
$ |
(3) |
$ |
— |
$ |
(0.02) |
$ |
— |
$ |
(4) |
$ |
— |
||||||
Global Competitiveness Program |
(2) |
— |
(0.01) |
— |
(3) |
— |
||||||||||||
Impairment charges |
(1) |
— |
(0.01) |
— |
(1) |
— |
||||||||||||
Milling Products: (3) |
$ |
(2) |
$ |
9 |
$ |
(0.02) |
$ |
0.06 |
$ |
(3) |
$ |
14 |
||||||
Global Competitiveness Program |
(2) |
— |
(0.02) |
— |
(2) |
— |
||||||||||||
Impairment charges |
— |
— |
— |
— |
(1) |
— |
||||||||||||
Brazilian wheat import tax contingency |
— |
9 |
— |
0.06 |
— |
14 |
||||||||||||
Sugar & Bioenergy: (4) |
$ |
(10) |
$ |
— |
$ |
(0.07) |
$ |
— |
$ |
(10) |
$ |
— |
||||||
Global Competitiveness Program |
(1) |
— |
— |
— |
(1) |
— |
||||||||||||
Impairment charges |
(1) |
— |
(0.01) |
— |
(1) |
— |
||||||||||||
Sugar restructuring charges |
(16) |
— |
(0.11) |
— |
(16) |
— |
||||||||||||
Indirect tax credits |
8 |
— |
0.05 |
— |
8 |
— |
||||||||||||
Income Taxes: (5) |
$ |
49 |
$ |
39 |
$ |
0.35 |
$ |
0.25 |
$ |
— |
$ |
— |
||||||
Income tax benefits (charges) |
49 |
39 |
0.35 |
0.25 |
— |
— |
||||||||||||
Total |
$ |
15 |
$ |
40 |
$ |
0.10 |
$ |
0.26 |
$ |
(41) |
$ |
2 |
Consolidated Earnings Data (Unaudited) | ||||||||||||
Quarter Ended |
Nine Months Ended | |||||||||||
(US$ in millions, except per share data) |
2017 |
2016 |
2017 |
2016 | ||||||||
Net sales |
$ |
11,423 |
$ |
11,423 |
$ |
34,189 |
$ |
30,880 |
||||
Cost of goods sold |
(10,933) |
(10,867) |
(32,884) |
(29,174) |
||||||||
Gross profit |
490 |
556 |
1,305 |
1,706 |
||||||||
Selling, general and administrative expenses |
(340) |
(324) |
(1,046) |
(941) |
||||||||
Foreign exchange gains (losses) |
1 |
(6) |
108 |
9 |
||||||||
Other income (expense) – net |
25 |
4 |
24 |
(14) |
||||||||
EBIT attributable to noncontrolling interest (a) (7) |
(1) |
(17) |
(10) |
(20) |
||||||||
Total Segment EBIT (6) |
175 |
213 |
381 |
740 |
||||||||
Interest income |
9 |
13 |
29 |
37 |
||||||||
Interest expense |
(64) |
(73) |
(191) |
(189) |
||||||||
Income tax (expense) benefit (5) |
(29) |
(45) |
(2) |
(118) |
||||||||
Noncontrolling interest share of interest and tax (a) (7) |
1 |
5 |
3 |
12 |
||||||||
Income (loss) from continuing operations, net of tax |
92 |
113 |
220 |
482 |
||||||||
Income (loss) from discontinued operations, net of tax |
— |
5 |
— |
(8) |
||||||||
Net income (loss) attributable to Bunge (7) |
92 |
118 |
220 |
474 |
||||||||
Convertible preference share dividends and other obligations |
(8) |
(2) |
(25) |
(27) |
||||||||
Net income (loss) available to Bunge common shareholders |
$ |
84 |
$ |
116 |
$ |
195 |
$ |
447 |
||||
Net income (loss) per common share diluted attributable to Bunge common shareholders (8) |
||||||||||||
Continuing operations |
$ |
0.59 |
$ |
0.79 |
$ |
1.38 |
$ |
3.24 |
||||
Discontinued operations |
— |
0.04 |
(0.01) |
(0.05) |
||||||||
Net income (loss) per common share - diluted |
$ |
0.59 |
$ |
0.83 |
$ |
1.37 |
$ |
3.19 |
||||
Weighted–average common shares outstanding - diluted |
142 |
140 |
141 |
148 |
||||||||
(a) The line items "EBIT attributable to noncontrolling interest" and "Noncontrolling interest share of interest and tax" when combined, represent consolidated Net loss (income) attributed to noncontrolling interests on a U.S. GAAP basis of presentation. |
Consolidated Segment Information (Unaudited) | ||||||||||||
Set forth below is a summary of certain earnings data and volumes by reportable segment. | ||||||||||||
Quarter Ended |
Nine Months Ended | |||||||||||
(US$ in millions, except volumes) |
2017 |
2016 |
2017 |
2016 | ||||||||
Volumes (in thousands of metric tons): |
||||||||||||
Agribusiness |
37,316 |
35,079 |
108,512 |
101,776 |
||||||||
Edible Oil Products |
1,945 |
1,762 |
5,681 |
5,106 |
||||||||
Milling Products |
1,127 |
1,153 |
3,300 |
3,395 |
||||||||
Sugar & Bioenergy |
2,696 |
2,304 |
6,677 |
6,343 |
||||||||
Fertilizer |
422 |
417 |
830 |
832 |
||||||||
Net sales: |
||||||||||||
Agribusiness |
$ |
7,720 |
$ |
8,063 |
$ |
23,837 |
$ |
21,870 |
||||
Edible Oil Products |
2,027 |
1,727 |
5,877 |
4,958 |
||||||||
Milling Products |
397 |
430 |
1,169 |
1,243 |
||||||||
Sugar & Bioenergy |
1,158 |
1,074 |
3,052 |
2,541 |
||||||||
Fertilizer |
121 |
129 |
254 |
268 |
||||||||
Total |
$ |
11,423 |
$ |
11,423 |
$ |
34,189 |
$ |
30,880 |
||||
Gross profit: |
||||||||||||
Agribusiness |
$ |
261 |
$ |
266 |
$ |
696 |
$ |
1,039 |
||||
Edible Oil Products |
125 |
117 |
359 |
316 |
||||||||
Milling Products |
59 |
89 |
155 |
212 |
||||||||
Sugar & Bioenergy |
36 |
67 |
78 |
108 |
||||||||
Fertilizer |
9 |
17 |
17 |
31 |
||||||||
Total |
$ |
490 |
$ |
556 |
$ |
1,305 |
$ |
1,706 |
||||
Selling, general and administrative expenses: |
||||||||||||
Agribusiness |
$ |
(187) |
$ |
(174) |
$ |
(585) |
$ |
(511) |
||||
Edible Oil Products |
(87) |
(77) |
(258) |
(238) |
||||||||
Milling Products |
(33) |
(36) |
(103) |
(97) |
||||||||
Sugar & Bioenergy |
(31) |
(31) |
(87) |
(80) |
||||||||
Fertilizer |
(2) |
(6) |
(13) |
(15) |
||||||||
Total |
$ |
(340) |
$ |
(324) |
$ |
(1,046) |
$ |
(941) |
||||
Foreign exchange gains (losses): |
||||||||||||
Agribusiness |
$ |
1 |
$ |
(7) |
$ |
93 |
$ |
13 |
||||
Edible Oil Products |
— |
— |
4 |
(2) |
||||||||
Milling Products |
— |
— |
(1) |
(5) |
||||||||
Sugar & Bioenergy |
1 |
2 |
10 |
5 |
||||||||
Fertilizer |
(1) |
(1) |
2 |
(2) |
||||||||
Total |
$ |
1 |
$ |
(6) |
$ |
108 |
$ |
9 |
||||
Segment EBIT: |
||||||||||||
Agribusiness |
$ |
103 |
$ |
83 |
$ |
230 |
$ |
533 |
||||
Edible Oil Products |
34 |
34 |
98 |
66 |
||||||||
Milling Products |
23 |
52 |
48 |
107 |
||||||||
Sugar & Bioenergy |
10 |
35 |
1 |
21 |
||||||||
Fertilizer |
5 |
9 |
4 |
13 |
||||||||
Total Segment EBIT (6) |
$ |
175 |
$ |
213 |
$ |
381 |
$ |
740 |
Condensed Consolidated Balance Sheets (Unaudited) | ||||||
September 30, |
December 31, | |||||
(US$ in millions) |
2017 |
2016 | ||||
Assets |
||||||
Cash and cash equivalents |
$ |
389 |
$ |
934 |
||
Time deposits under trade structured finance program |
— |
64 |
||||
Trade accounts receivable, net |
1,867 |
1,676 |
||||
Inventories (9) |
5,848 |
4,773 |
||||
Other current assets |
3,881 |
3,645 |
||||
Total current assets |
11,985 |
11,092 |
||||
Property, plant and equipment, net |
5,420 |
5,099 |
||||
Goodwill and other intangible assets, net |
853 |
709 |
||||
Investments in affiliates |
418 |
373 |
||||
Time deposits under trade structured finance program |
313 |
464 |
||||
Other non-current assets |
1,563 |
1,451 |
||||
Total assets |
$ |
20,552 |
$ |
19,188 |
||
Liabilities and Equity |
||||||
Short-term debt |
$ |
1,021 |
$ |
257 |
||
Current portion of long-term debt |
287 |
938 |
||||
Letter of credit obligations under trade structured finance program |
313 |
528 |
||||
Trade accounts payable |
3,650 |
3,485 |
||||
Other current liabilities |
2,197 |
2,476 |
||||
Total current liabilities |
7,468 |
7,684 |
||||
Long-term debt |
4,246 |
3,069 |
||||
Other non-current liabilities |
1,088 |
1,092 |
||||
Total liabilities |
12,802 |
11,845 |
||||
Total equity |
7,750 |
7,343 |
||||
Total liabilities and equity |
$ |
20,552 |
$ |
19,188 |
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||
Nine Months Ended | ||||||
(US$ in millions) |
2017 |
2016 | ||||
Operating Activities |
||||||
Net income (7) |
$ |
227 |
$ |
482 |
||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: |
||||||
Impairment charges |
26 |
17 |
||||
Foreign exchange (gain) loss on net debt |
28 |
115 |
||||
Depreciation, depletion and amortization |
448 |
402 |
||||
Deferred income tax |
(8) |
105 |
||||
Other, net |
49 |
48 |
||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
||||||
Trade accounts receivable |
(200) |
28 |
||||
Inventories |
(837) |
(487) |
||||
Secured advances to suppliers |
101 |
205 |
||||
Trade accounts payable and accrued liabilities |
265 |
233 |
||||
Advances on sales |
(200) |
(157) |
||||
Net unrealized gain (loss) on derivative contracts |
153 |
(157) |
||||
Margin deposits |
(26) |
(44) |
||||
Other, net |
(328) |
(155) |
||||
Cash provided by (used for) operating activities |
(302) |
635 |
||||
Investing Activities |
||||||
Payments made for capital expenditures |
(485) |
(488) |
||||
Acquisitions of businesses (net of cash acquired) |
(369) |
— |
||||
Settlement of net investment hedges |
(23) |
(210) |
||||
Proceeds from investments |
398 |
584 |
||||
Payments for investments |
(686) |
(515) |
||||
Payments for investments in affiliates |
(77) |
(24) |
||||
Other, net |
8 |
(14) |
||||
Cash provided by (used for) investing activities |
(1,234) |
(667) |
||||
Financing Activities |
||||||
Net borrowings (repayments) of short-term debt |
750 |
(147) |
||||
Net proceeds (repayments) of long-term debt |
402 |
503 |
||||
Repurchases of common shares |
— |
(200) |
||||
Proceeds from the exercise of options for common shares |
58 |
— |
||||
Dividends paid |
(207) |
(191) |
||||
Other, net |
(34) |
(67) |
||||
Cash provided by (used for) financing activities |
969 |
(102) |
||||
Effect of exchange rate changes on cash and cash equivalents |
22 |
20 |
||||
Net increase (decrease) in cash and cash equivalents |
(545) |
(114) |
||||
Cash and cash equivalents, beginning of period |
934 |
411 |
||||
Cash and cash equivalents, end of period |
$ |
389 |
$ |
297 |
This earnings release contains certain "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934. Bunge has reconciled these non-GAAP financial measures to the most directly comparable U.S. GAAP measures below. These measures may not be comparable to similarly titled measures used by other companies.
Total Segment EBIT and Total Segment EBIT, adjusted
Bunge uses total segment earnings before interest and taxes ("Total Segment EBIT") to evaluate Bunge's operating performance. Total Segment EBIT is the aggregate of each of our five reportable segments' earnings before interest and taxes. Total Segment EBIT, adjusted, is calculated by excluding certain gains and charges as described above in "Additional Financial Information" from Total Segment EBIT. Total Segment EBIT and Total Segment EBIT, adjusted are non-GAAP financial measures and are not intended to replace net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Bunge's management believes these non-GAAP measures are a useful measure of its reportable segments' operating profitability, since the measures allow for an evaluation of segment performance without regard to their financing methods or capital structure. For this reason, operating performance measures such as these non-GAAP measures are widely used by analysts and investors in Bunge's industries. These non-GAAP measures are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to net income (loss) or any other measure of consolidated operating results under U.S. GAAP.
Below is a reconciliation of Net income attributable to Bunge to Total Segment EBIT, adjusted:
Quarter Ended |
Nine Months Ended | |||||||||||
(US$ in millions) |
2017 |
2016 |
2017 |
2016 | ||||||||
Net income (loss) attributable to Bunge |
$ |
92 |
$ |
118 |
$ |
220 |
$ |
474 |
||||
Interest income |
(9) |
(13) |
(29) |
(37) |
||||||||
Interest expense |
64 |
73 |
191 |
189 |
||||||||
Income tax expense (benefit) |
29 |
45 |
2 |
118 |
||||||||
(Income) loss from discontinued operations, net of tax |
— |
(5) |
— |
8 |
||||||||
Noncontrolling interest share of interest and tax |
(1) |
(5) |
(3) |
(12) |
||||||||
Total Segment EBIT |
175 |
213 |
381 |
740 |
||||||||
Certain (gains) and charges |
29 |
(14) |
41 |
(2) |
||||||||
Total Segment EBIT, adjusted |
$ |
204 |
$ |
199 |
$ |
422 |
$ |
738 |
Net income (loss) per common share from continuing operations-diluted, adjusted, excludes certain gains and charges and discontinued operations and is a non-GAAP financial measure. This measure is not a measure of earnings per common share-diluted, the most directly comparable U.S. GAAP financial measure. It should not be considered as an alternative to earnings per share-diluted or any other measure of consolidated operating results under U.S. GAAP. Net income (loss) per common share from continuing operations-diluted, adjusted is a useful measure of the Company's profitability.
Below is a reconciliation of Net income attributable to Bunge to Bunge to Net income (loss) - adjusted (excluding certain gains & charges and discontinued operations).
(US$ in millions, except per share data) |
Quarter Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||||||
Net Income attributable to Bunge |
$ |
92 |
$ |
118 |
$ |
220 |
$ |
474 |
||||||||
Adjusted for certain gains and charges: |
||||||||||||||||
Global Competitiveness Program |
9 |
— |
9 |
— |
||||||||||||
Impairment charges |
17 |
— |
17 |
8 |
||||||||||||
Sugar restructuring charges |
4 |
— |
16 |
— |
||||||||||||
Indirect tax credits |
(8) |
— |
(8) |
— |
||||||||||||
Brazilian wheat import tax contingency |
— |
(9) |
— |
(9) |
||||||||||||
Income tax benefits (charges) |
— |
— |
(49) |
(39) |
||||||||||||
Adjusted Net Income attributable to Bunge |
114 |
109 |
205 |
434 |
||||||||||||
Discontinued Operations |
— |
(5) |
— |
8 |
||||||||||||
Other Redeemable Obligations |
— |
6 |
— |
(2) |
||||||||||||
Convertible Preference shares dividends |
(8) |
(8) |
(25) |
— |
||||||||||||
Net income (loss) - adjusted (excluding certain gains & charges and discontinued operations) |
$ |
106 |
$ |
102 |
$ |
180 |
$ |
440 |
||||||||
Weighted-average common shares outstanding - diluted |
142 |
140 |
141 |
148 |
||||||||||||
Net income (loss) per common share - diluted, adjusted (excluding certain gains & charges and discontinued operations) |
$ |
0.75 |
$ |
0.73 |
$ |
1.28 |
$ |
2.98 |
Below is a reconciliation of Net income (loss) per common share from continuing operations - diluted, adjusted (excluding certain gains & charges and discontinued operations) to Net income (loss) per common share–diluted:
Quarter Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Continuing operations: |
|||||||||||||||
Net income (loss) per common share - diluted adjusted (excluding certain gains & charges and discontinued operations) |
$ |
0.75 |
$ |
0.73 |
$ |
1.28 |
$ |
2.98 |
|||||||
Certain gains & charges (see Additional Financial Information section) |
(0.16) |
0.06 |
0.10 |
0.26 |
|||||||||||
Net income (loss) per common share - continuing operations |
0.59 |
0.79 |
1.38 |
3.24 |
|||||||||||
Discontinued operations: |
— |
0.04 |
(0.01) |
(0.05) |
|||||||||||
Net income (loss) per common share - diluted |
$ |
0.59 |
$ |
0.83 |
$ |
1.37 |
$ |
3.19 |
| |
(1) |
Agribusiness: |
EBIT for the third quarter and nine months ended September 30, 2017 includes charges related to the Company's Global Competitiveness Program of $(7) million [$(4) million for severance and other employee benefit costs and $(3) million for associated third party consulting costs] and $(17) million for impairment charges [$(13) of our palm oil plantation joint venture and $(4) million for impairment of intangible assets related to patents]. Of these amounts, $(11) million was included within Selling, general and administrative expenses. | |
2016 EBIT charges of $(12) million were related to an impairment charge associated with the remaining unamortized carrying value of certain patents, recorded in the second quarter. Of this amounts, $(0) million was included within Selling, general and administrative expenses. | |
(2) |
Edible Oil Products: |
EBIT for the third quarter and nine months ended September 30, 2017 includes charges related to the Company's Global Competitiveness Program of $(3) million [$(1) million for severance and other employee benefit costs and $(2) million for associated third party consulting costs] and $(1) million for impairment of intangible assets related to patents. Of these amounts, $(3) million was included within Selling, general and administrative expenses. | |
(3) |
Milling Products: |
EBIT for the third quarter and nine months ended September 30, 2017 includes charges related to the Company's Global Competitiveness Program of $(2) million for severance and other employee benefit costs and $(1) million for impairment of intangible assets related to patents. Of these amounts, $(2) million was included within Selling, general and administrative expenses. | |
EBIT for the third quarter and nine months ended September 30, 2016 includes gains of $14 million related to a wheat import tax contingency settlement in Brazil. Of these amounts, $(0) million was included within Selling, general and administrative expenses. | |
(4) |
Sugar & Bioenergy: |
EBIT for the third quarter and nine months ended September 30, 2017 includes charges related to the Company's Global Competitiveness Program of $(1) million for associated third party consulting costs and $(1) million for impairment of intangible assets related to patents. Of these amounts, $(2) million was included within Selling, general and administrative expenses. | |
2017 charges also include Sugar restructuring charges of which $(4) million and $(16) million, that were recorded in the three and nine months ended September 30, 2017, respectively. Of these amounts, $(0) million and $(1) million, were included within Selling, general and administrative expenses during the three and nine months ended September 30, 2017, respectively. | |
EBIT for the third quarter and nine months ended September 30, 2017 also includes gains of $8 million related to indirect tax credits. Of these amounts, $(0) million was included within Selling, general and administrative expenses. | |
(5) |
Income Taxes: |
2017 income tax benefits (charges) include a benefit of $32 million for the favorable resolution of an uncertain tax position in Asia recorded in the second quarter. In addition, 2017 income tax benefits (charges) include a benefit of $17 million as a result of a tax election in South America recorded in the second quarter. | |
2016 income tax benefits (charges) include benefits of $60 million, net of reserves for the change in a tax election for North America recorded in the first quarter and $11 million related to tax credits in Europe recorded in the second quarter, offset by a charge of $(32) million for an uncertain tax position related to Asia recorded in the first quarter. |
| |
Notes to Financial Tables: | |
(6) |
See Definition and Reconciliation of Non-GAAP Measures. |
(7) |
A reconciliation of Net income attributable to Bunge to Net income is as follows: |
Nine Months Ended | |||||||
2017 |
2016 | ||||||
Net income (loss) attributable to Bunge |
$ |
220 |
$ |
474 |
|||
EBIT attributable to noncontrolling interest |
10 |
20 |
|||||
Noncontrolling interest share of interest and tax |
(3) |
(12) |
|||||
Net income (loss) |
$ |
227 |
$ |
482 |
(8) |
Approximately 3 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2017. Approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares were not dilutive and not included in the weighted-average number of shares outstanding for the three and nine months ended September 30, 2017. |
Approximately 4 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2016. Approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares were not dilutive and not included in the weighted-average number of common shares outstanding for the three months ended September 30, 2016. | |
(9) |
Includes readily marketable inventories of $4,702 million and $3,855 million at September 30, 2017 and December 31, 2016, respectively. Of these amounts, $3,540 million and $2,662 million, respectively, can be attributable to merchandising activities. |
(10) |
The Oilseed business included in our Agribusiness segment consists of our global activities related to the crushing of oilseeds (including soybeans, canola, rapeseed and sunflower seed) into protein meals and vegetable oils; the trading and distribution of oilseeds and oilseed products; and biodiesel production, which is primarily conducted through joint ventures. |
The Grains business included in our Agribusiness segment consists primarily of our global grain origination activities, which principally conduct the purchasing, cleaning, drying, storing and handling of corn, wheat, barley, rice and oilseeds at our network of grain elevators; the logistical services for distribution of these commodities to our customer markets through our port terminals and transportation assets (including trucks, railcars, barges and ocean vessels); and financial services and activities for customers from whom we purchase commodities and other third parties. |
View original content:http://www.prnewswire.com/news-releases/bunge-reports-third-quarter-2017-results-300547051.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y., Oct. 4, 2017 /PRNewswire/ -- Bunge Limited (NYSE: BG) will announce its results for the quarter ended September 30, 2017, on Wednesday, November 1, 2017, prior to the market opening.
Bunge Limited's management will host a conference call at 8:00 a.m. EDT on Wednesday, November 1, 2017 to discuss the company's results.
Additionally, a slide presentation to accompany the discussion of results will be posted on www.bunge.com.
To listen to the call, please dial (877) 883-0383. If you are located outside the United States or Canada, dial (412) 902-6506. Please dial in five to 10 minutes before the scheduled start time. When prompted, enter confirmation code 8162299. The call will also be webcast live at www.bunge.com.
To access the webcast, go to "Webcasts and presentations" in the "Investors" section of the company's website. Select "Q3 2017 Bunge Limited Conference Call" and follow the prompts. Please go to the website at least 15 minutes prior to the call to register and download any necessary audio software.
A replay of the call will be available later in the day on November 1, 2017, continuing through December 1, 2017. To listen to it, please dial (877) 344-7529 in the United States, (855) 669-9658 in Canada, or (412) 317-0088 in other locations. When prompted, enter confirmation code 10112670. A replay will also be available in "Past events" at "Webcasts and presentations" in the "Investors" section of the company's website.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
View original content:http://www.prnewswire.com/news-releases/bunge-limited-schedules-third-quarter-earnings-release-and-conference-call-300531288.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y., Sep. 18, 2017 /PRNewswire/ -- Bunge Limited (NYSE: BG) today announced that Bunge Limited Finance Corp., its wholly owned finance subsidiary, has priced a public offering of $400 million aggregate principal amount of 3.00% senior notes due 2022 and $600 million aggregate principal amount of 3.75% senior notes due 2027. The senior notes will be guaranteed by Bunge Limited. The offering was made pursuant to a registration statement filed with the U.S. Securities and Exchange Commission. The transaction is expected to close on September 25, 2017.
Bunge Limited intends to use the net proceeds from this offering to finance its previously announced acquisition of a 70% ownership interest in IOI Loders Croklaan. Pending the closing of the acquisition, Bunge intends to use the proceeds to repay outstanding indebtedness.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc. and Natixis Securities Americas LLC are acting as joint book-running managers for the offering of the 3.00% senior notes due 2022 and Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc. and Credit Suisse Securities (USA) LLC are acting as joint book-running managers for the offering of the 3.75% senior notes due 2027. ABN AMRO Securities (USA) LLC, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Rabo Securities USA, Inc., SG Americas Securities, LLC and UniCredit Capital Markets LLC are acting as senior co-managers for the offering of both tranches of senior notes. ANZ Securities Inc., Barclays Capital Inc., BB Securities Limited, BBVA Securities Inc., BMO Capital Markets Corp., Commerz Markets LLC, ICBC Standard Bank Plc, ING Financial Markets LLC, Loop Capital Markets LLC, nabSecurities, LLC, PNC Capital Markets LLC, RBS Securities Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., Standard Chartered Bank and SunTrust Robinson Humphrey, Inc. are acting as co-managers for the offering of both tranches of senior notes.
This offering of senior notes may be made only by means of the prospectus supplement and the accompanying prospectus related to the offering. Copies of the prospectus supplement and the accompanying prospectus relating to the offering can be obtained by calling Citigroup Global Markets Inc. toll-free at 1-800-831-9146, J.P. Morgan Securities LLC collect at 1-212-834-4533, Mizuho Securities USA LLC toll-free at 1-866-271-7403 or SMBC Nikko Securities America, Inc. toll-free at 1-888-868-6856.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, these senior notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Website Information
We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 32,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities, including statements with respect to the completion, timing and anticipated use of proceeds of the offering, as well as the completion and timing of the Loders acquisition. We have tried to identify these forward looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward looking statements, including those risk factors described in or incorporated by reference in the prospectus supplement for the offering. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
View original content:http://www.prnewswire.com/news-releases/bunge-limited-announces-pricing-of-senior-notes-offering-300521562.html
SOURCE Bunge Limited
WHITE PLAINS, N.Y. and SINGAPORE, July 5, 2016 /PRNewswire/ -- Bunge Limited (NYSE: BG) ("Bunge") and Wilmar International Limited (SGX: F34) ("Wilmar") announced today they are forming a joint venture in Vietnam to leverage both companies' footprints in Asia.
Bunge will sell 45% of its equity in its Vietnam crush operations to Wilmar, creating a three-party joint venture with Bunge and Wilmar as equal 45% shareholders and Quang Dung – a leading soybean meal distributor in Vietnam and majority owner of Green Feed, a growing Vietnamese feed milling business – retaining its existing 10% stake in the operations.
The transaction establishes a strategic collaboration between three uniquely positioned leaders in the Vietnamese oil and feed markets, unlocking growth potential by connecting Bunge's upstream crushing capabilities to Wilmar's downstream oil refining and consumer products business, and to Green Feed's feed milling and marketing activities. The joint venture creates integrated operations that are both a source and sales outlet for oil in Vietnam – one of the fastest-growing domestic edible oils markets in Asia – and that enable increased participation in the domestic feed milling industry.
"Bunge is excited to partner with Wilmar, the largest downstream edible oils player in Vietnam," said Soren Schroder, CEO, Bunge Limited. "The collaboration will create increased operating, marketing and logistics synergies across the Vietnam oils and soybean meal value chains, and help us remain a low-cost operator with the highest efficiency possible."
"Bunge is a natural partner for us. In Vietnam, it is the largest producer of soybean oil and Wilmar is a major buyer of soybean oil," said Kuok Khoon Hong, Chairman and CEO of Wilmar. "The soybean meal distribution capabilities of the joint venture also complement Wilmar's animal feed ingredients business in Vietnam, including rice bran, wheat bran, palm kernel expeller, copra expeller, canola meal and feed oils."
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 35,000 employees. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
About Wilmar International Limited
Wilmar International Limited, founded in 1991 and headquartered in Singapore, is today Asia's leading agribusiness group. Wilmar is ranked amongst the largest listed companies by market capitalisation on the Singapore Exchange.
Wilmar's business activities include oil palm cultivation, oilseed crushing, edible oils refining, sugar milling and refining, specialty fats, oleochemicals, biodiesel and fertiliser manufacturing as well as rice and flour milling. At the core of Wilmar's strategy is an integrated agribusiness model that encompasses the entire value chain of the agricultural commodity business, from cultivation, processing, merchandising to manufacturing of a wide range of branded agricultural products. It has over 500 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries. The Group has a multinational workforce of about 92,000 people.
Wilmar's portfolio of high quality processed agricultural products is the preferred choice of consumers and the food manufacturing industry. Its consumer-packed products have a leading share in many Asian and African countries. Through scale, integration and the logistical advantages of its business model, Wilmar is able to extract margins at every step of the value chain, thereby reaping operational synergies and cost efficiencies. Wilmar is a firm advocate of sustainable growth and is committed to its role as a responsible corporate citizen.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
SOURCE Bunge Limited
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