WHITE PLAINS, N.Y.,
Aug. 1, 2018 /PRNewswire/
-- Bunge Limited (NYSE: BG)
- Q2 GAAP EPS of $(0.20);
$0.10 on an adjusted basis
- Agribusiness impacted by ~$125
million of new negative mark-to-market on forward soy
crushing contracts; positioned for strong second half of the
year
- Food & Ingredients slightly higher than last year,
driven by improved results in Milling
- Loders Croklaan integration progressing well
- Global Competitiveness Program exceeding expectations;
increasing 2018 savings target to $150 million from $100
million
- Maintaining 2018 full-year EBIT outlook of ~$1.3 billion, which would exceed prior year
by ~$700 million on the back of
strong industry fundamentals
|
Quarter Ended
June 30,
|
|
Six Months
Ended
June 30,
|
US$ 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
operations-diluted
|
$
|
(0.20)
|
|
$
|
0.48
|
|
|
$
|
(0.39)
|
|
$
|
0.79
|
|
|
|
|
|
|
|
Net income (loss)
per common share from continuing
operations-diluted, adjusted (a)
|
$
|
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
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 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.
- Conference Call and Webcast Details
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.
- 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 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
June 30,
|
Six Months
Ended
June 30, 2018
|
(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
Bunge common shareholders (9)
|
|
|
|
|
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
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
June 30,
|
Six Months
Ended
June 30,
|
(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
activities:
|
|
|
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
|
|
- 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 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
June 30,
|
Six Months
Ended
June 30,
|
(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
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
June 30,
|
|
Six Months
Ended
June 30,
|
(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
and discontinued operations)
|
$
|
14
|
|
|
$
|
23
|
|
|
$
|
6
|
|
|
$
|
74
|
|
Weighted-average
common shares outstanding - diluted
|
141
|
|
|
141
|
|
|
141
|
|
|
141
|
|
Net income (loss)
per common share - diluted, adjusted
(excluding certain gains & charges and discontinued
operations)
|
$
|
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
June 30,
|
|
Six Months
Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Continuing
operations:
|
|
|
|
|
|
|
|
Net income (loss) per
common share - diluted adjusted
(excluding certain gains & charges and discontinued
operations)
|
$
|
0.10
|
|
|
$
|
0.17
|
|
|
$
|
0.04
|
|
|
$
|
0.52
|
|
Certain gains &
charges (see Additional Financial Information
section)
|
(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
|
|
- Severance, Employee Benefit and Other Costs
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
and
Employee
Benefit Costs
|
Other
Costs
|
Total
Costs
|
|
Severance
and
Employee
Benefit Costs
|
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
administrative expenses
|
6
|
|
12
|
|
18
|
|
|
$
|
11
|
|
$
|
21
|
|
$
|
32
|
|
Other associated cost
reduction and
strategic initiatives:
|
|
|
|
|
|
|
|
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:
- 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.
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.
|
View original
content:http://www.prnewswire.com/news-releases/bunge-reports-second-quarter-2018-results-300689848.html
SOURCE Bunge Limited