WHITE PLAINS, N.Y.,
Feb. 15, 2017 /PRNewswire/ -- Bunge
Limited (NYSE:BG)
- Q4 GAAP EPS of $1.83 vs.
$1.31 last year, $1.70 vs $1.49 on
an adjusted basis
- Higher results driven by Food & Ingredients and Sugar
& Bioenergy
- Combined Agri-Foods trailing four quarter ROIC of 8.6%; 1.6
points over WACC
- Operating cash flow of $1,904
million; adjusted funds from operations of $1,477 million (a)
- Continue to expect strong earnings growth in 2017
Financial Highlights
|
Quarter
Ended
|
Year
Ended
|
US$ in millions,
except per share
data
|
12/31/16
|
12/31/15
|
12/31/16
|
12/31/15
|
Net income
attributable to Bunge
|
$271
|
$203
|
$745
|
$791
|
Net income (loss)
per common share from continuing operations-diluted
|
$1.83
|
$1.31
|
$5.07
|
$4.84
|
Net income (loss)
per common share from
continuing operations-diluted, adjusted
(a)
|
$1.70
|
$1.49
|
$4.67
|
$4.83
|
Total Segment
EBIT (a)
|
$403
|
$294
|
$1,143
|
$1,248
|
Certain gains &
(charges) (b)
|
$41
|
$(43)
|
$43
|
$19
|
Total Segment EBIT,
adjusted (a)
|
$362
|
$337
|
$1,100
|
$1,229
|
Agribusiness
(c)
|
$237
|
$268
|
$782
|
$1,054
|
Oilseeds
|
$134
|
$185
|
$407
|
$596
|
Grains
|
$103
|
$83
|
$375
|
$458
|
Food & Ingredients
(d)
|
$70
|
$46
|
$229
|
$192
|
Sugar &
Bioenergy
|
$30
|
$10
|
$51
|
$(22)
|
Fertilizer
|
$25
|
$13
|
$38
|
$5
|
|
|
|
|
|
|
|
(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 23 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.
|
Overview
Soren Schroder, Bunge's Chief
Executive Officer, stated, "Bunge had a solid fourth quarter to end
a challenging year. Higher Food & Ingredients and Sugar &
Bioenergy results in 2016 reflect our team's hard work to drive
structural improvements to increase the underlying competitiveness
of our businesses. Agribusiness faced a very competitive global
market environment, but finished strong. Our 2016 adjusted
ROIC in our core Agribusiness and Food operations was 8.6%, 1.6
points over our cost of capital.
"Our efforts to drive long term, sustainable value are on track.
In 2016 we delivered $135 million of
cost and efficiency benefits, exceeding our target by $10 million. Adjusted Funds from Operations were
approximately $1.5 billion,
$61 million higher than last
year. We returned $457 million
to shareholders through dividends and share repurchases, and capex
of $784 million was below our
$850 million guidance and is tracking
approximately $275 million below our
2014-2017 target, reflecting disciplined capital allocation.
We expanded our value added Food & Ingredients'
capabilities with bolt-on M&A in Europe and strengthened our winning
Agribusiness footprint through joint ventures in Brazil, Vietnam and Canada. We expect our previously announced
Northern European soy crush and Mexican corn milling acquisitions
to close, respectively, in the first and second quarters of
2017.
"We enter 2017 with confidence and expect strong growth in
earnings. After disappointing crops in South America last year, the region is on
track to produce record harvests this season, which aligns well
with our footprint. In addition, global soybean processing margins,
which were under pressure during most of 2016, are improving, and
soft seed margins are better in both North America and Europe. We expect Food & Ingredients to
increase its share of value added products and to grow
volumes. In Sugar & Bioenergy, our sugar is hedged at
higher prices and Brazilian ethanol prices should be supported by
favorable supply and demand. Importantly, we will also continue to
drive our performance improvement programs, expecting $100 million of incremental benefits in
2017."
Fourth Quarter Results
Agribusiness
Results
decreased from last year, primarily due to lower results in our soy
processing operations, reflecting tight bean supplies in
South America and softer global
soymeal demand due to competition from lower cost feed products.
Results in our European and Canadian softseed processing operations
increased, driven by large crops, solid vegetable oil demand and
our new Ukrainian plant, which started up earlier this year.
Improved performance in Grains was largely driven by higher results
in our U.S. operations, which benefitted from record corn and
soybean crops that increased origination and export volumes and
margins, as well as lower costs resulting from our footprint
optimization efforts. Our global teams effectively managed risk
during the quarter; however, contributions from risk management
were lower than last year.
Edible Oil
Products
Increased results in the fourth quarter were
primarily driven by improved performance in Brazil, reflecting higher margins in all major
product categories, share gains and lower costs. In India, increased sales of higher margin
specialty bakery products contributed to its improved performance.
Results in North America were down
as higher results in Canada were
more than offset by lower U.S. results. Performance in Europe was comparable to last year.
Milling Products
Higher
results in the quarter were primarily due to increased volumes and
margins in Brazil, which
benefitted from the contribution of our recently acquired Pacifico
mill, market share gains and improved product mix. Partially
offsetting these improvements were lower results in North America, driven by the translation
impact of the stronger U.S. dollar on our Mexican operations and
lower margins in our U.S. corn milling business.
Sugar &
Bioenergy
Increased results in the quarter were primarily
driven by our sugarcane milling operation, where higher sugar and
ethanol prices more than offset lower crush volumes. Results in our
trading & distribution business were down due to lower volumes
and margins. Results in our biofuel joint ventures were higher due
to improved volumes and margins. We incurred a $7 million loss in the quarter associated with
our renewable oils joint venture.
Fertilizer
Higher
results in the quarter were driven by improved volumes in our
Argentine fertilizer business that slightly offset lower margins.
Results in the quarter also benefitted from the reversal of an
$11 million provision related to
tariffs on natural gas consumption.
Cash Flow
Cash generated
by operations in the year ended December 31,
2016 was $1,904 million
compared to cash generated of $610
million in 2015. The year-over-year increase was primarily
driven by lower levels of working capital reflecting increased
payables and decreased secured advances to farmers. Adjusted
funds from operations of $1,477
million was $61 million higher
than the year ago period of $1,416
million.
Income Taxes
The
effective tax rate for year ended December
31, 2016 was 22%. Adjusting for net gains and charges, the
effective tax rate was approximately 24%.
Outlook
Thomas
Boehlert, Chief Financial Officer, stated, "Our full-year
2017 outlook remains largely consistent with the assumptions that
we provided at our December investor day. In Agribusiness, we
expect EBIT to return to historical range of $895 to $1,050 million, driven by large crops in
South America, of which Brazilian
farmers have a significant percentage remaining to price; a return
to more normal levels of soy meal inclusion in feed rations; and
higher softseed crush margins due to the combination of greater
seed supply and robust vegetable oil demand. We expect Agribusiness
to start the year slow and progressively improve as volumes and
margins pick up in South America.
"In Food & Ingredients, we expect segment results to improve
sequentially as we progress through the year, resulting in EBIT of
$270 to $290 million. Our
outlook for year-over-year improvement reflects higher margins and
volumes resulting from our performance improvement initiatives,
more favorable product mix of higher value added products and full
year contributions from our new wheat mills in Brazil.
"In Sugar & Bioenergy, we expect 2017 EBIT of $100 to $120 million. Our outlook for
year-over-year improvement reflects our actions to improve cane
yields, sugar prices hedged at higher levels, a favorable ethanol
supply-demand balance in Brazil,
and assumes normal seasonal weather patterns. Similar to past
years, results will be seasonally weak in the first half of the
year.
"In Fertilizer, we expect EBIT of approximately $30 million.
"Additionally, we expect the following for 2017: a tax rate
range of 24 to 27%; net interest expense in the range of
$200 to $225 million; depreciation,
depletion and amortization of approximately $550 million; and capital expenditures of
$750 to $800 million."
Conference Call and Webcast Details
Bunge Limited's management will host a conference call at
8:00 a.m. EST on February 15, 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 (888) 771-4371. If you
are located outside the United
States or Canada, dial
(847) 585-4405. Please dial in five to 10 minutes before the
scheduled start time. When prompted, enter confirmation code
44122118. The call will also be webcast live at
www.bunge.com.
To access the webcast, go to "Webcasts and Events" in the
"Investors" section of the company's website. Select "Q4 2016
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 15, 2017, continuing through
March 17, 2017. To listen to
it, please dial (888) 843-7419 or, if located outside the United States or Canada, dial (630) 652-3042. When
prompted, enter confirmation code 44122118. A replay will
also be available at "Past Events" 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.
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.
Additional
Financial Information
|
|
The following table
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 continuing operations for total
segment EBIT for the quarters and years ended December 31, 2016 and
2015.
|
|
|
|
|
|
Net Income
(loss)
|
Earnings
|
|
|
Attributable
to
|
Per
Share
|
Total
Segment
|
(US$ in millions,
except per share data)
|
Bunge
|
Diluted
|
EBIT
|
Quarter Ended
December 31,
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
Continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Agribusiness:
|
$
|
71
|
$
|
(20)
|
$
|
0.48
|
$
|
(0.13)
|
$
|
105
|
$
|
(23)
|
|
Gain on disposition
of equity interest of operations in Brazil
(1)
|
|
59
|
|
-
|
|
0.40
|
|
-
|
|
90
|
|
-
|
|
Gain on disposition
of equity interest of operations in Asia (2)
|
|
27
|
|
-
|
|
0.18
|
|
-
|
|
30
|
|
-
|
|
Impairment of equity
investment in Asia (3)
|
|
(15)
|
|
-
|
|
(0.10)
|
|
-
|
|
(15)
|
|
-
|
|
Tax assessment
transfer fee (7)
|
|
-
|
|
(6)
|
|
-
|
|
(0.04)
|
|
-
|
|
(9)
|
|
Impairment of equity
investment in Europe (8)
|
|
-
|
|
(14)
|
|
-
|
|
(0.09)
|
|
-
|
|
(14)
|
Edible Oil
Products:
|
$
|
-
|
$
|
(10)
|
$
|
-
|
$
|
(0.07)
|
$
|
-
|
$
|
(15)
|
|
Goodwill impairment
(10)
|
|
-
|
|
(9)
|
|
-
|
|
(0.06)
|
|
-
|
|
(13)
|
|
Restructuring charges
(11)
|
|
-
|
|
(1)
|
|
-
|
|
(0.01)
|
|
-
|
|
(2)
|
Sugar &
Bioenergy:
|
$
|
(53)
|
$
|
(5)
|
$
|
(0.35)
|
$
|
(0.03)
|
$
|
(55)
|
$
|
(5)
|
|
Restructuring charges
(13)
|
|
(3)
|
|
(5)
|
|
(0.02)
|
|
(0.03)
|
|
(3)
|
|
(5)
|
|
Provision for
long-term receivables in Brazil (14)
|
|
(8)
|
|
-
|
|
(0.05)
|
|
-
|
|
(8)
|
|
-
|
|
Impairment of equity
investment in Brazil (15)
|
|
(42)
|
|
-
|
|
(0.28)
|
|
-
|
|
(44)
|
|
-
|
Fertilizer:
|
$
|
(6)
|
$
|
-
|
$
|
(0.04)
|
$
|
-
|
$
|
(9)
|
$
|
-
|
|
Asset impairment in
Argentina (16)
|
|
(6)
|
|
-
|
|
(0.04)
|
|
-
|
|
(9)
|
|
-
|
Interest and
Income Taxes:
|
$
|
5
|
$
|
8
|
$
|
0.04
|
$
|
0.05
|
$
|
-
|
$
|
-
|
|
Income tax benefits
(charges) (17)
|
|
(5)
|
|
8
|
|
(0.03)
|
|
0.05
|
|
-
|
|
-
|
|
Reversal of interest
related to ICMS tax credits in Brazil (18)
|
|
10
|
|
-
|
|
0.07
|
|
-
|
|
-
|
|
-
|
Total
|
$
|
17
|
$
|
(27)
|
$
|
0.13
|
$
|
(0.18)
|
$
|
41
|
$
|
(43)
|
„ Additional
Financial Information
|
|
|
Net
Income
|
Earnings
|
|
|
Attributable
to
|
Per
Share
|
Total
Segment
|
(US$ in millions,
except per share data)
|
Bunge
|
Diluted
|
EBIT
|
Year Ended
December 31,
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
Continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Agribusiness:
|
$
|
63
|
$
|
42
|
$
|
0.43
|
$
|
0.27
|
$
|
93
|
$
|
54
|
|
Gain on disposition
of equity interest of operations in Brazil
(1)
|
|
59
|
|
-
|
|
0.40
|
|
-
|
|
90
|
|
-
|
|
Gain on disposition
of equity interest of operations in Asia (2)
|
|
27
|
|
-
|
|
0.18
|
|
-
|
|
30
|
|
-
|
|
Impairment of equity
investment in Asia (3)
|
|
(15)
|
|
-
|
|
(0.10)
|
|
-
|
|
(15)
|
|
-
|
|
Impairment of
intangible assets (4)
|
|
(8)
|
|
-
|
|
(0.05)
|
|
-
|
|
(12)
|
|
-
|
|
Gain on sale of grain
assets in Canada (5)
|
|
-
|
|
43
|
|
-
|
|
0.28
|
|
-
|
|
47
|
|
Reversal of export
tax contingency (6)
|
|
-
|
|
19
|
|
-
|
|
0.12
|
|
-
|
|
30
|
|
Tax assessment
transfer fee (7)
|
|
-
|
|
(6)
|
|
-
|
|
(0.04)
|
|
-
|
|
(9)
|
|
Impairment of equity
investment in Europe (8)
|
|
-
|
|
(14)
|
|
-
|
|
(0.09)
|
|
-
|
|
(14)
|
Edible Oil
Products:
|
$
|
-
|
$
|
(20)
|
$
|
-
|
$
|
(0.14)
|
$
|
-
|
$
|
(30)
|
|
Impairment of
packaged oil facility (9)
|
|
-
|
|
(10)
|
|
-
|
|
(0.07)
|
|
-
|
|
(15)
|
|
Goodwill impairment
(10)
|
|
-
|
|
(9)
|
|
-
|
|
(0.06)
|
|
-
|
|
(13)
|
|
Restructuring charges
(11)
|
|
-
|
|
(1)
|
|
-
|
|
(0.01)
|
|
-
|
|
(2)
|
Milling
Products:
|
$
|
9
|
$
|
-
|
$
|
0.06
|
$
|
-
|
$
|
14
|
$
|
-
|
|
Brazilian wheat
import tax contingency (12)
|
|
9
|
|
-
|
|
0.06
|
|
-
|
|
14
|
|
-
|
Sugar &
Bioenergy:
|
$
|
(53)
|
$
|
(5)
|
$
|
(0.35)
|
$
|
(0.03)
|
$
|
(55)
|
$
|
(5)
|
|
Restructuring charges
(13)
|
|
(3)
|
|
(5)
|
|
(0.02)
|
|
(0.03)
|
|
(3)
|
|
(5)
|
|
Provision for
long-term receivables in Brazil (14)
|
|
(8)
|
|
-
|
|
(0.05)
|
|
-
|
|
(8)
|
|
-
|
|
Impairment of equity
investment in Brazil (15)
|
|
(42)
|
|
-
|
|
(0.28)
|
|
-
|
|
(44)
|
|
-
|
Fertilizer:
|
$
|
(6)
|
$
|
-
|
$
|
(0.04)
|
$
|
-
|
$
|
(9)
|
$
|
-
|
|
Asset impairment in
Argentina (16)
|
|
(6)
|
|
-
|
|
(0.04)
|
|
-
|
|
(9)
|
|
-
|
Interest and
Income Taxes:
|
$
|
44
|
$
|
(16)
|
$
|
0.30
|
$
|
(0.09)
|
$
|
-
|
$
|
-
|
|
Income tax benefits
(charges) (17)
|
|
34
|
|
(16)
|
|
0.23
|
|
(0.09)
|
|
-
|
|
-
|
|
Reversal of interest
related to ICMS tax credits in Brazil (18)
|
|
10
|
|
-
|
|
0.07
|
|
-
|
|
-
|
|
-
|
Total
|
$
|
57
|
$
|
1
|
$
|
0.40
|
$
|
0.01
|
$
|
43
|
$
|
19
|
Consolidated
Earnings Data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Year
Ended
|
|
December
31,
|
|
|
December
31,
|
(US$ in millions,
except per share data)
|
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
Net sales
|
$
|
12,059
|
$
|
11,105
|
|
|
$
|
42,939
|
$
|
43,455
|
Cost of goods
sold
|
|
(11,355)
|
|
(10,402)
|
|
|
|
(40,529)
|
|
(40,762)
|
Gross
profit
|
|
704
|
|
703
|
|
|
|
2,410
|
|
2,693
|
Selling, general and
administrative expenses
|
|
(345)
|
|
(385)
|
|
|
|
(1,286)
|
|
(1,435)
|
Foreign exchange
gains (losses)
|
|
(17)
|
|
7
|
|
|
|
(8)
|
|
(8)
|
Other income
(expense)−net
|
|
14
|
|
(12)
|
|
|
|
12
|
|
(18)
|
Gain on disposition
of equity interests and sale of assets
(1),(2),(5)
|
|
122
|
|
-
|
|
|
|
122
|
|
47
|
Equity investment
impairments (3),(15)
|
|
(59)
|
|
-
|
|
|
|
(59)
|
|
-
|
Goodwill and
intangible impairments (4),(10)
|
|
-
|
|
(13)
|
|
|
|
(12)
|
|
(13)
|
EBIT attributable to
noncontrolling interest(a) (19)
|
|
(16)
|
|
(6)
|
|
|
|
(36)
|
|
(18)
|
Total Segment EBIT
(18)
|
|
403
|
|
294
|
|
|
|
1,143
|
|
1,248
|
Interest
income
|
|
14
|
|
1
|
|
|
|
51
|
|
43
|
Interest
expense
|
|
(45)
|
|
(71)
|
|
|
|
(234)
|
|
(258)
|
Income tax
expense
|
|
(102)
|
|
(26)
|
|
|
|
(220)
|
|
(296)
|
Noncontrolling
interest share of interest and tax(a) (20)
|
|
2
|
|
6
|
|
|
|
14
|
|
19
|
Income from
continuing operations, net of tax
|
|
272
|
|
204
|
|
|
|
754
|
|
756
|
Income (loss) from
discontinued operations, net of tax
|
|
(1)
|
|
(1)
|
|
|
|
(9)
|
|
35
|
Net income
attributable to Bunge(20)
|
|
271
|
|
203
|
|
|
|
745
|
|
791
|
Convertible
preference share dividends and other obligations
|
|
(9)
|
|
(15)
|
|
|
|
(36)
|
|
(53)
|
Net income
available to Bunge common shareholders
|
$
|
262
|
$
|
188
|
|
|
$
|
709
|
$
|
738
|
Net income (loss)
per common share diluted attributable to
Bunge common shareholders (21):
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.83
|
$
|
1.31
|
|
|
$
|
5.07
|
$
|
4.84
|
Discontinued
operations
|
|
(0.01)
|
|
(0.01)
|
|
|
|
(0.06)
|
|
0.23
|
Net income (loss)
per common share - diluted
|
$
|
1.82
|
$
|
1.30
|
|
|
$
|
5.01
|
$
|
5.07
|
Weighted–average
common shares outstanding - diluted
|
|
148
|
|
151
|
|
|
|
148
|
|
152
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
(US$ in millions,
except volumes)
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
Volumes (in
thousands of metric tons):
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
|
32,829
|
|
33,936
|
|
|
134,605
|
|
134,136
|
Edible Oil
Products
|
|
1,883
|
|
1,826
|
|
|
6,989
|
|
6,831
|
Milling
Products
|
|
1,103
|
|
1,063
|
|
|
4,498
|
|
4,199
|
Sugar &
Bioenergy
|
|
2,734
|
|
3,016
|
|
|
9,077
|
|
10,440
|
Fertilizer
|
|
440
|
|
359
|
|
|
1,272
|
|
979
|
|
|
|
|
|
|
|
|
|
|
Net
sales:
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
8,344
|
$
|
7,894
|
|
$
|
30,214
|
$
|
31,267
|
Edible Oil
Products
|
|
1,901
|
|
1,724
|
|
|
6,859
|
|
6,698
|
Milling
Products
|
|
404
|
|
379
|
|
|
1,647
|
|
1,609
|
Sugar &
Bioenergy
|
|
1,275
|
|
976
|
|
|
3,816
|
|
3,495
|
Fertilizer
|
|
135
|
|
132
|
|
|
403
|
|
386
|
Total
|
$
|
12,059
|
$
|
11,105
|
|
$
|
42,939
|
$
|
43,455
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
451
|
$
|
465
|
|
$
|
1,490
|
$
|
1,858
|
Edible Oil
Products
|
|
123
|
|
107
|
|
|
439
|
|
404
|
Milling
Products
|
|
57
|
|
44
|
|
|
269
|
|
237
|
Sugar &
Bioenergy
|
|
51
|
|
65
|
|
|
159
|
|
164
|
Fertilizer
|
|
22
|
|
22
|
|
|
53
|
|
30
|
Total
|
$
|
704
|
$
|
703
|
|
$
|
2,410
|
$
|
2,693
|
Selling, general
and administrative expenses:
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
(195)
|
$
|
(251)
|
|
$
|
(706)
|
$
|
(851)
|
Edible Oil
Products
|
|
(82)
|
|
(76)
|
|
|
(320)
|
|
(328)
|
Milling
Products
|
|
(30)
|
|
(29)
|
|
|
(127)
|
|
(123)
|
Sugar &
Bioenergy
|
|
(32)
|
|
(23)
|
|
|
(112)
|
|
(109)
|
Fertilizer
|
|
(6)
|
|
(6)
|
|
|
(21)
|
|
(24)
|
Total
|
$
|
(345)
|
$
|
(385)
|
|
$
|
(1,286)
|
$
|
(1,435)
|
Foreign exchange
gain (loss):
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
(20)
|
$
|
38
|
|
$
|
(7)
|
$
|
67
|
Edible Oil
Products
|
|
1
|
|
-
|
|
|
(1)
|
|
-
|
Milling
Products
|
|
(2)
|
|
-
|
|
|
(7)
|
|
(8)
|
Sugar &
Bioenergy
|
|
4
|
|
(30)
|
|
|
9
|
|
(68)
|
Fertilizer
|
|
-
|
|
(1)
|
|
|
(2)
|
|
1
|
Total
|
$
|
(17)
|
$
|
7
|
|
$
|
(8)
|
$
|
(8)
|
|
|
|
|
|
|
|
|
|
|
Segment
EBIT:
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
342
|
$
|
245
|
|
$
|
875
|
$
|
1,108
|
Edible Oil
Products
|
|
46
|
|
16
|
|
|
112
|
|
59
|
Milling
Products
|
|
24
|
|
15
|
|
|
131
|
|
103
|
Sugar &
Bioenergy
|
|
(25)
|
|
5
|
|
|
(4)
|
|
(27)
|
Fertilizer
|
|
16
|
|
13
|
|
|
29
|
|
5
|
Total(19)
|
$
|
403
|
$
|
294
|
|
$
|
1,143
|
$
|
1,248
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
(US$ in
millions)
|
|
2016
|
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
934
|
|
|
$
|
411
|
Time deposits under
trade structured finance program
|
|
|
64
|
|
|
|
325
|
Trade accounts
receivable, net
|
|
|
1,676
|
|
|
|
1,607
|
Inventories
(22)
|
|
|
4,773
|
|
|
|
4,466
|
Other current
assets
|
|
|
3,645
|
|
|
|
4,107
|
Total current
assets
|
|
|
11,092
|
|
|
|
10,916
|
Property, plant and
equipment, net
|
|
|
5,099
|
|
|
|
4,736
|
Goodwill and other
intangible assets, net
|
|
|
709
|
|
|
|
744
|
Investments in
affiliates
|
|
|
373
|
|
|
|
329
|
Time deposits under
trade structured finance program
|
|
|
464
|
|
|
|
-
|
Other non-current
assets
|
|
|
1,451
|
|
|
|
1,189
|
Total
assets
|
|
$
|
19,188
|
|
|
$
|
17,914
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Short-term
debt
|
|
$
|
257
|
|
|
$
|
648
|
Current portion of
long-term debt
|
|
|
938
|
|
|
|
869
|
Letter of credit
obligations under trade structured finance program
|
|
|
528
|
|
|
|
325
|
Trade accounts
payable
|
|
|
3,485
|
|
|
|
2,675
|
Other current
liabilities
|
|
|
2,476
|
|
|
|
2,823
|
Total current
liabilities
|
|
|
7,684
|
|
|
|
7,340
|
Long-term
debt
|
|
|
3,069
|
|
|
|
2,926
|
Other non-current
liabilities
|
|
|
1,092
|
|
|
|
959
|
Total
liabilities
|
|
|
11,845
|
|
|
|
11,225
|
Redeemable
noncontrolling interest
|
|
|
-
|
|
|
|
37
|
Total
equity
|
|
|
7,343
|
|
|
|
6,652
|
Total liabilities
and equity
|
|
$
|
19,188
|
|
|
$
|
17,914
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
Year
Ended
|
|
|
December
31,
|
(US$ in
millions)
|
|
2016
|
|
|
|
2015
|
Operating
Activities
|
|
|
|
|
|
|
Net income
(20)
|
$
|
767
|
|
|
$
|
790
|
Adjustments to
reconcile net income to cash provided by (used for) operating
activities:
|
|
|
|
|
|
|
Impairment
charges
|
|
87
|
|
|
|
57
|
Foreign exchange loss
(gain) on debt
|
|
80
|
|
|
|
(213)
|
Gain on disposition
of equity interest of operations
|
|
(120)
|
|
|
|
(47)
|
Deferred income
taxes
|
|
126
|
|
|
|
16
|
Depreciation,
depletion and amortization
|
|
547
|
|
|
|
545
|
Other, net
|
|
70
|
|
|
|
55
|
Changes in operating
assets and liabilities, excluding the effects of
acquisitions:
|
|
|
|
|
|
|
Trade accounts
receivable, net
|
|
(131)
|
|
|
|
(97)
|
Inventories
|
|
(269)
|
|
|
|
314
|
Secured advances to
suppliers
|
|
38
|
|
|
|
(397)
|
Trade accounts
payable
|
|
708
|
|
|
|
(88)
|
Advances on
sales
|
|
36
|
|
|
|
22
|
Net unrealized
gain/loss on derivative contracts
|
|
(84)
|
|
|
|
(16)
|
Accrued
liabilities
|
|
(148)
|
|
|
|
(7)
|
Margin
deposits
|
|
199
|
|
|
|
(154)
|
Other, net
|
|
(2)
|
|
|
|
(170)
|
Cash provided by
(used for) operating activities
|
|
1,904
|
|
|
|
610
|
Investing
Activities
|
|
|
|
|
|
|
Payments made for
capital expenditures
|
|
(784)
|
|
|
|
(649)
|
Acquisitions of
businesses (net of cash acquired)
|
|
(34)
|
|
|
|
(347)
|
Proceeds from
investments
|
|
802
|
|
|
|
295
|
Payments for
investments
|
|
(553)
|
|
|
|
(235)
|
Settlement of net
investment hedges
|
|
(375)
|
|
|
|
203
|
Proceeds from the
sale of grain assets in Canada
|
|
-
|
|
|
|
88
|
Payments for
investments in affiliates
|
|
(40)
|
|
|
|
(167)
|
Other, net
|
|
58
|
|
|
|
10
|
Cash provided by
(used for) investing activities
|
|
(926)
|
|
|
|
(802)
|
Financing
Activities
|
|
|
|
|
|
|
Net borrowings
(repayments) of short-term debt
|
|
(255)
|
|
|
|
187
|
Net proceeds
(repayments) of long-term debt
|
|
316
|
|
|
|
695
|
Repurchases of common
shares
|
|
(200)
|
|
|
|
(300)
|
Dividends
paid
|
|
(282)
|
|
|
|
(249)
|
Other, net
|
|
(67)
|
|
|
|
27
|
Cash provided by
(used for) financing activities
|
|
(488)
|
|
|
|
360
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
33
|
|
|
|
(119)
|
Net increase
(decrease) in cash and cash equivalents
|
|
523
|
|
|
|
49
|
Cash and cash
equivalents, beginning of period
|
|
411
|
|
|
|
362
|
Cash and cash
equivalents, end of period
|
$
|
934
|
|
|
$
|
411
|
„
Definition and Reconciliation of Non-GAAP Measures
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
|
|
|
December
31,
|
|
|
|
December
31,
|
(US$ in
millions)
|
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
Net income
attributable to Bunge
|
$
|
271
|
$
|
203
|
|
|
$
|
745
|
$
|
791
|
Interest
income
|
|
(14)
|
|
(1)
|
|
|
|
(51)
|
|
(43)
|
Interest
expense
|
|
45
|
|
71
|
|
|
|
234
|
|
258
|
Income tax expense
(benefit)
|
|
102
|
|
26
|
|
|
|
220
|
|
296
|
(Income) loss from
discontinued operations, net of tax
|
|
1
|
|
1
|
|
|
|
9
|
|
(35)
|
Noncontrolling
interest share of interest and tax
|
|
(2)
|
|
(6)
|
|
|
|
(14)
|
|
(19)
|
Total Segment
EBIT
|
|
403
|
|
294
|
|
|
|
1,143
|
|
1,248
|
Certain gains
& (charges)
|
|
41
|
|
(43)
|
|
|
|
43
|
|
19
|
Total Segment
EBIT, adjusted
|
$
|
362
|
$
|
337
|
|
|
$
|
1,100
|
$
|
1,229
|
Net Income (loss) per common share from continuing
operations–diluted, adjusted
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 (loss) per common share
from continuing operations - diluted, adjusted to Net income (loss)
per common share–diluted:
|
|
Quarter
Ended
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
Continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share - diluted adjusted (excluding certain
|
|
|
|
|
|
|
|
|
|
|
|
gains & charges
and discontinued operations)
|
$
|
1.70
|
$
|
1.49
|
|
|
$
|
4.67
|
$
|
4.83
|
Certain gains &
charges (see Additional Financial Information section)
|
|
0.13
|
|
(0.18)
|
|
|
|
0.40
|
|
0.01
|
Net income (loss) per
common share - continuing operations
|
|
1.83
|
|
1.31
|
|
|
|
5.07
|
|
4.84
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
(0.01)
|
|
(0.01)
|
|
|
|
(0.06)
|
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share - diluted
|
$
|
1.82
|
$
|
1.30
|
|
|
$
|
5.01
|
$
|
5.07
|
„Notes
Agribusiness:
1) 2016 EBIT includes a $90
million pre-tax gain related to disposition of equity
interest of operations in Brazil,
recorded in the fourth quarter, of which $92
million was recorded in other income (expense)-net and
$(2) million in foreign exchange
gains and (losses).
2) 2016 EBIT includes a $30
million pre-tax gain related to disposition of equity
interest of operations in Asia,
recorded in the fourth quarter.
3) 2016 EBIT includes a $(15)
million pre-tax impairment charge related to an equity
investment in Asia, recorded in
the fourth quarter.
4) 2016 EBIT includes a $(12)
million pre-tax impairment charge related to remaining
unamortized carrying value of certain patents in the United States, recorded in the second
quarter.
5) 2015 EBIT includes a $47
million pre-tax gain on the sale of grain assets in
Canada, recorded in the third
quarter.
6) 2015 EBIT includes a $30
million pre-tax reversal of an export tax contingency in
Argentina, recorded in the second
quarter.
7) 2015 EBIT includes $(9)
million pre-tax charge of taxes and fees related to export
activities in our Argentinian subsidiary, recorded in the fourth
quarter.
8) 2015 EBIT includes a $(14)
million pre-tax impairment charge related to an equity
investment in a freight shipping company in Europe, recorded in the fourth quarter.
Edible Oil Products:
9) 2015 EBIT includes a $(15)
million pre-tax impairment charge related to the announced
closure of a packaged oil plant in the
United States, recorded in the second quarter.
10) 2015 EBIT includes a $(13)
million pre-tax goodwill impairment charge related to our
tomato products business in Brazil, recorded in the fourth quarter.
11) 2015 EBIT includes $(2)
million of pre-tax restructuring charges recorded in the
fourth quarter.
Milling Products:
12) 2016 EBIT includes a $14
million pre-tax gain related to a wheat import tax
contingency settlement in Brazil
recorded in the third quarter.
Sugar & Bioenergy:
13) 2016 EBIT includes a $(3)
million pre-tax restructuring charge recorded in the fourth
quarter.
2015 EBIT includes a $(5) million
pre-tax restructuring charge recorded in the fourth quarter.
14) 2016 EBIT includes a $(8)
million pre-tax provision for long-term receivables in
Brazil recorded in the fourth
quarter.
15) 2016 EBIT includes a $(44)
million pre-tax impairment charge of an equity investment in
Brazil, recorded in the fourth
quarter.
Fertilizer:
16) 2016 EBIT includes a $(9)
million pre-tax impairment charge related to property, plant
and equipment in Argentina,
recorded in the fourth quarter.
Interest and Income Taxes:
17) 2016 income tax benefits (charges) include benefits of
$34 million. Of these amounts
$60 million, net of reserves, relates
to the 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 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.
2015 income tax benefits (charges) include charges of
$(16) million. Of these amounts
$(4) million relates to the
finalization of a tax audit in Asia, recorded in the second quarter,
$(14) million and $(12) million, resulting from management's
evaluation of the recoverability of net deferred tax assets in
Asia, recorded in the third and
fourth quarters, respectively. Offset by income tax valuation
(allowances) reversals of $14 million
benefit resulting from management's evaluation of the
recoverability of its net deferred tax assets of a subsidiary in
North America, recorded in the
fourth quarter.
18) 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 the Financial Tables:
19) See Definition and Reconciliation of Non-GAAP
Measures.
20) A reconciliation of Net income attributable to Bunge to
Net income is as follows:
|
Twelve Months
Ended
|
|
December
31,
|
|
|
2016
|
|
|
2015
|
Net income
attributable to Bunge
|
$
|
745
|
|
$
|
791
|
|
EBIT attributable to
noncontrolling interest
|
|
36
|
|
|
18
|
|
Noncontrolling
interest share of interest and tax
|
|
(14)
|
|
|
(19)
|
|
Net
income
|
$
|
767
|
|
$
|
790
|
|
21) Weighted-average common shares outstanding-diluted for
the fourth quarter and year ended December
31, 2016 excludes the dilutive effect of 4 million,
respectively, of outstanding stock options and contingently
issuable restricted stock units as the effect of conversion would
not have been dilutive.
Weighted-average common shares outstanding-diluted for the
fourth quarter and year ended December 31,
2015 excludes the dilutive effect of 4 million and 3
million, respectively, of outstanding stock options and
contingently issuable restricted stock units as the effect of
conversion would not have been dilutive.
22) Includes readily marketable inventories of $3,855 million and $3,666
million at December 31, 2016
and 2015, respectively. Of these amounts, $2,523 million and $2,513
million, respectively, can be attributable to merchandising
activities.
23) 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bunge-reports-fourth-quarter-2016-results-300407687.html
SOURCE Bunge Limited