WHITE PLAINS, N.Y.,
Feb. 14, 2018 /PRNewswire/
-- Bunge Limited (NYSE:BG)
- Q4 GAAP EPS of $(0.48)
reflecting charges primarily related to restructuring and tax
reform; $0.67 on an adjusted
basis
- Agribusiness impacted by weak margins; Sugar & Bioenergy
impacted by adverse weather
- Edible Oils finished the year strong with near record
results
- Global Competitiveness Program exceeded expectations in
2017
- Expect Loders Croklaan acquisition to close in Q1
- 2018 outlook includes year-over-year improvement in all
segments
|
|
Quarter Ended
December 31,
|
|
Year Ended
December 31,
|
US$ 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
operations-diluted
|
$
|
(0.48)
|
|
|
$
|
1.83
|
|
|
$
|
0.89
|
|
$
|
5.07
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share from continuing
operations-diluted, adjusted (a)
|
$
|
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.
- Conference Call and Webcast Details
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.
- 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 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.
- Additional Financial Information
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
December 31,
|
Year Ended
December 31,
|
(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
common shareholders (9)
|
|
|
|
|
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
December 31,
|
Year Ended
December 31,
|
(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
December 31,
|
(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
|
|
- 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
December 31,
|
Year Ended
December 31,
|
(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
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
December 31,
|
|
Year Ended
December 31,
|
(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 &
charges and discontinued operations)
|
$
|
94
|
|
|
$
|
255
|
|
|
$
|
274
|
|
|
$
|
695
|
|
Weighted-average
common shares outstanding - diluted
|
141
|
|
|
148
|
|
|
141
|
|
|
148
|
|
Net income (loss)
per common share - diluted, adjusted
(excluding certain gains & charges and discontinued
operations)
|
$
|
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
December 31,
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Continuing
operations:
|
|
|
|
|
|
|
|
Net income (loss) per
common share - diluted adjusted
(excluding certain gains & charges and discontinued
operations)
|
$
|
0.67
|
|
|
$
|
1.70
|
|
|
$
|
1.94
|
|
|
$
|
4.67
|
|
Certain gains &
charges (see Additional Financial Information
section)
|
(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
|
|
- Severance, Employee Benefit and Other Costs
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
and
Employee
Benefit Costs
|
Other
Costs
|
Total
Costs
|
|
Severance
and
Employee
Benefit Costs
|
Other
Costs
|
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
and administrative expenses
|
$
|
32
|
|
$
|
12
|
|
$
|
44
|
|
|
$
|
37
|
|
$
|
18
|
|
$
|
55
|
|
Other associated cost
reduction and
strategic initiatives:
|
|
|
|
|
|
|
|
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:
- GCP program costs which include severance and related employee
costs, consulting and professional costs and other costs
specifically designated to the program,
- Changes in inflation and foreign exchange rates as compared to
Addressable Baseline assumptions,
- Perimeter changes relating to acquisitions and divestitures and
corporate transactions,
- Changes in variable compensation relating to business
performance as compared to the Addressable Baseline assumptions,
and
- Identified investments in new or enhanced capabilities.
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
December 31,
|
|
|
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.
|
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SOURCE Bunge Limited