WHITE PLAINS, N.Y.,
Oct. 31, 2018 /PRNewswire/ --
Bunge Limited (NYSE:BG)
- Q3 GAAP EPS of $2.39 vs.
$0.59 in the prior year; $2.52 vs. $0.75 on
an adjusted basis
- Agribusiness results driven by strong soybean crushing
margins; includes ~$155 million
of new mark-to-market gains on forward soy crushing
contracts
- In Food & Ingredients, Milling produced a
solid quarter; Edible Oils impacted by oil surplus from
strong soy crushing environment
- Global Competitiveness Program expected to deliver full
savings a year ahead of schedule; increasing 2018 savings target to
$175 million from $150 million
- Expect 2018 full-year EBIT outlook of ~$1.2 billion, ~$600
million higher than prior year, and combined core
Agribusiness-Foods ROIC to exceed WACC
|
Quarter Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
US$ in millions,
except per share data
|
2018
|
2017
|
|
2018
|
2017
|
|
Net income (loss)
attributable to Bunge
|
$
|
365
|
|
$
|
92
|
|
|
$
|
332
|
|
$
|
220
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share from continuing
operations-diluted
|
$
|
2.39
|
|
$
|
0.59
|
|
|
$
|
2.08
|
|
$
|
1.38
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share from continuing
operations-diluted, adjusted (a)
|
$
|
2.52
|
|
$
|
0.75
|
|
|
$
|
2.64
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
Total Segment EBIT
(a)
|
$
|
535
|
|
$
|
175
|
|
|
$
|
667
|
|
$
|
381
|
|
|
Certain gains &
(charges) (b)
|
(38)
|
|
(29)
|
|
|
(108)
|
|
(41)
|
|
|
Total Segment EBIT,
adjusted (a)
|
$
|
573
|
|
$
|
204
|
|
|
$
|
775
|
|
$
|
422
|
|
|
Agribusiness
(c)
|
$
|
485
|
|
$
|
127
|
|
|
$
|
655
|
|
$
|
254
|
|
|
Oilseeds
|
$
|
367
|
|
$
|
88
|
|
|
$
|
473
|
|
$
|
182
|
|
|
Grains
|
$
|
118
|
|
$
|
39
|
|
|
$
|
182
|
|
$
|
72
|
|
|
Food & Ingredients
(d)
|
$
|
62
|
|
$
|
64
|
|
|
$
|
162
|
|
$
|
153
|
|
|
Sugar &
Bioenergy
|
$
|
3
|
|
$
|
8
|
|
|
$
|
(57)
|
|
$
|
11
|
|
|
Fertilizer
|
$
|
23
|
|
$
|
5
|
|
|
$
|
15
|
|
$
|
4
|
|
|
(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, "Bunge produced a strong third
quarter, supported by the prudent actions we took in the second
quarter to secure crush margins at multi-year highs, positioning
the company for a strong second half performance. Milling also had
a good quarter; however, margins in Edible Oils remained under
pressure due to a surplus of soy oil resulting from the strong
global crushing environment. The integration of our recent
acquisition of Loders Croklaan is on track, and the combined Bunge
Loders Croklaan platform will be an important driver of earnings
going forward."
Schroder continued, "Looking ahead, we expect to deliver a good
fourth quarter led by our Northern Hemisphere oilseed processing
operations. We also expect improvement in Edible Oils, where oil
supplies are tightening, and we are entering the period of
seasonally stronger demand.
We continue to drive greater efficiency and lower costs
throughout the company. The Global Competitiveness Program is now
expected to generate $175 million in
SG&A savings this year relative to our 2017 baseline. This
represents a $25 million increase
from our previous target and $75
million higher than our initial estimate this year. We have
also achieved $65 million of
industrial cost savings toward our full year target of $80
million, positioning us well to enter 2019 with a lower cost
profile."
Agribusiness
Structural soy crush margins were higher in all regions driven
by favorable market dynamics and actions taken in the second
quarter to deliberately build our inventory of Brazilian beans,
allowing us to secure crush margins in Brazil and China at attractive margins. A decrease in
industry margins in certain regions resulted in new mark-to-market
gains in the quarter of approximately $155
million related to forward soy crushing contracts, which
will reverse as we execute on these contracts in the coming
quarters.
In Grains, higher results in the quarter were primarily driven
by Brazil origination, which
benefitted from increased farmer selling as local soy prices rose
from the combination of currency devaluation and strong export
demand. Results in North America
origination benefitted from lower logistics costs, which last year
were negatively impacted by weather. Results in ocean freight were
also higher than last year.
Edible Oil Products
Performance improved sequentially; however, due to the favorable
soy crushing environment, margins in Brazilian packaged oil and
North American refining remained under pressure. Underlying
performance of Bunge Loders Croklaan was solid and the integration
is on track, but reported earnings were impacted by an approximate
$10 million negative impact from the
revaluation of raw material supply contracts that will largely
reverse in future quarters as sales contracts are executed.
Excluding this impact, Loders results were as expected. Compared to
last year, higher results in the U.S. and Argentina were more than offset by lower
results in other regions.
Milling Products
Improved performance was driven by higher results in
Brazil as margins expanded with
the smaller domestic wheat crop. Results in the U.S. and
Mexico were similar to last
year.
Sugar & Bioenergy
Sugarcane milling results were negatively impacted by early
season drought and excessive rain during the quarter, reducing
production and increasing unit costs. Sugar trading &
distribution incurred a $5 million
loss related to exiting the international business, which was
completed during the quarter.
Fertilizer
Higher results in the quarter were driven by our Argentine
operation, benefitting from higher prices and volumes, as well as
lower costs related to prior restructuring actions. Additionally,
third quarter results included a $7
million recovery of foreign exchange losses from the second
quarter. An additional $6 million
recovery is expected in the fourth quarter.
Global Competitiveness Program
The Global Competitiveness Program announced in July 2017 is rationalizing Bunge's cost structure
and reengineering 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 SG&A savings of $175 million by the end of this year relative to
our 2017 baseline. This reflects $75
million of additional savings compared to our initial
outlook for 2018. We expect 2019 savings against the baseline of
approximately $250 million, achieving
our addressable SG&A target of $1.1
billion a full year ahead of schedule. With the changes
implemented and our culture of continuous improvement, we expect to
achieve additional savings beyond 2019.
Cash Flow
Cash used by operations in the nine months ended September 30, 2018 was approximately
$3.3 billion compared to cash used of
approximately $2.0 billion in
the same period last year. The year-over-year variance is primarily
due to an increase in inventory, reflecting our decision to build
soybean supplies in Brazil during
the second quarter to support our crushing operations. We expect to
work down the balance to a lower level during the fourth quarter.
Trailing four-quarter adjusted funds from operations was
approximately $1.1 billion as of the
quarter ended September 30, 2018.
Income Taxes
Income taxes for the nine months ended September 30, 2018 were $106 million, which included a notable tax
benefit of $15 million. The prior
year included $49 million of notable
tax benefits.
Business conditions are expected to remain favorable for the
balance of 2018 and into 2019 driven by strong oilseeds processing
margins and improving conditions in Edible Oils.
In Agribusiness, we expect our full-year 2018 EBIT results to be
in the upper half of the range of $800
million to $1.0 billion, with
fourth quarter results to be driven primarily by our Northern
Hemisphere oilseeds operations.
In Food & Ingredients, we are reducing our full-year EBIT
outlook range to $250 to $270 million, reflecting a softer than expected
third quarter in Edible Oils. While margins are currently
recovering in Edible Oils, they are doing so at a pace slower than
we had anticipated.
In Sugar & Bioenergy, we are reducing our full-year EBIT
outlook from breakeven to a loss of between $20 and $40
million. This is based on the weaker than expected third
quarter results and continued lower cane crush from the challenging
weather conditions, and includes a year-to-date loss of
$25 million in our trading &
distribution business.
In Fertilizer, we are increasing our full-year EBIT outlook to
approximately $35 million, an
increase of $10 million from our
previous outlook.
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 at
the upper end of the range of 18% to 22%; net interest expense in
the range of $310 to $315 million, an increase of approximately
$35 million due to higher inventories
and interest rates; capital expenditures of approximately
$600 million, a reduction of
$50 million from our previous
estimate.
- Conference Call and Webcast Details
Bunge Limited's management will host a conference call at 8:00
a.m. EDT on Wednesday, October 31,
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 6561288. The
call will also be webcast live at www.bunge.com.
To access the webcast, go to "Webcasts and presentations" in the
"Investors" section of the company's website. Select "Q3 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
October 31, 2018, continuing through
November 30, 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 10124597. 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 nine months ended September 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
September 30,
|
2018
|
2017
|
2018
|
2017
|
2018
|
2017
|
|
|
|
|
|
|
|
|
Agribusiness:
(1)
|
$
|
(20)
|
|
$
|
(19)
|
|
$
|
(0.14)
|
|
$
|
(0.14)
|
|
$
|
(21)
|
|
$
|
(24)
|
|
|
Severance, employee
benefit, and other costs
|
(6)
|
|
(4)
|
|
(0.04)
|
|
(0.03)
|
|
(7)
|
|
(7)
|
|
|
Impairment
charges
|
—
|
|
(15)
|
|
—
|
|
(0.11)
|
|
—
|
|
(17)
|
|
|
Loss on disposition
of equity investment
|
(14)
|
|
—
|
|
(0.10)
|
|
—
|
|
(14)
|
|
—
|
|
|
|
|
|
|
|
|
|
Edible Oil
Products: (2)
|
$
|
(1)
|
|
$
|
(3)
|
|
$
|
(0.01)
|
|
$
|
(0.02)
|
|
$
|
(2)
|
|
$
|
(4)
|
|
|
Severance, employee
benefit, and other costs
|
—
|
|
(2)
|
|
—
|
|
(0.01)
|
|
(1)
|
|
(3)
|
|
|
Impairment
charges
|
—
|
|
(1)
|
|
—
|
|
(0.01)
|
|
—
|
|
(1)
|
|
|
Acquisition and
integration costs
|
(1)
|
|
—
|
|
(0.01)
|
|
—
|
|
(1)
|
|
—
|
|
|
|
|
|
|
|
|
|
Milling
Products: (3)
|
$
|
—
|
|
$
|
(2)
|
|
$
|
—
|
|
$
|
(0.02)
|
|
$
|
—
|
|
$
|
(3)
|
|
|
Severance, employee
benefit, and other costs
|
—
|
|
(2)
|
|
—
|
|
(0.02)
|
|
—
|
|
(2)
|
|
|
Impairment
charges
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1)
|
|
|
|
|
|
|
|
|
|
Sugar &
Bioenergy: (4)
|
$
|
(3)
|
|
$
|
2
|
|
$
|
(0.02)
|
|
$
|
0.02
|
|
$
|
(3)
|
|
$
|
2
|
|
|
Severance, employee
benefit, and other costs
|
(1)
|
|
(1)
|
|
(0.01)
|
|
—
|
|
(1)
|
|
(1)
|
|
|
Impairment
charges
|
—
|
|
(1)
|
|
—
|
|
(0.01)
|
|
—
|
|
(1)
|
|
|
Indirect tax
credits
|
—
|
|
8
|
|
—
|
|
0.05
|
|
—
|
|
8
|
|
|
Sugar restructuring
charges
|
(2)
|
|
(4)
|
|
(0.01)
|
|
(0.02)
|
|
(2)
|
|
(4)
|
|
|
|
|
|
|
|
|
|
Income Taxes and
Other Unallocated: (6)
|
$
|
6
|
|
$
|
—
|
|
$
|
0.04
|
|
$
|
—
|
|
$
|
(12)
|
|
$
|
—
|
|
|
Income tax
benefits
|
15
|
|
—
|
|
0.11
|
|
—
|
|
—
|
|
—
|
|
|
Loss on
extinguishment of debt
|
(9)
|
|
—
|
|
(0.07)
|
|
—
|
|
(12)
|
|
—
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
(18)
|
|
$
|
(22)
|
|
$
|
(0.13)
|
|
$
|
(0.16)
|
|
$
|
(38)
|
|
$
|
(29)
|
|
|
(US$ in millions,
except per share data)
|
Net Income
(Loss)
Attributable
to
Bunge
|
Earnings
Per
Share
Diluted
|
Total
Segment
EBIT
(7)
|
|
Nine Months Ended
September 30,
|
2018
|
2017
|
2018
|
2017
|
2018
|
2017
|
|
|
|
|
|
|
|
|
Agribusiness:
(1)
|
$
|
(37)
|
|
$
|
(19)
|
|
$
|
(0.26)
|
|
$
|
(0.14)
|
|
$
|
(43)
|
|
$
|
(24)
|
|
|
Severance, employee
benefit, and other costs
|
(24)
|
|
(4)
|
|
(0.17)
|
|
(0.03)
|
|
(30)
|
|
(7)
|
|
|
Impairment
charges
|
—
|
|
(15)
|
|
—
|
|
(0.11)
|
|
—
|
|
(17)
|
|
|
Gain (loss), net on
disposition of equity investment and
subsidiary
|
(13)
|
|
—
|
|
(0.09)
|
|
—
|
|
(13)
|
|
—
|
|
|
|
|
|
|
|
|
|
Edible Oil
Products: (2)
|
$
|
(15)
|
|
$
|
(3)
|
|
$
|
(0.11)
|
|
$
|
(0.02)
|
|
$
|
(17)
|
|
$
|
(4)
|
|
|
Severance, employee
benefit, and other costs
|
(4)
|
|
(2)
|
|
(0.03)
|
|
(0.01)
|
|
(6)
|
|
(3)
|
|
|
Impairment
charges
|
—
|
|
(1)
|
|
—
|
|
(0.01)
|
|
—
|
|
(1)
|
|
|
Acquisition and
integration costs
|
(11)
|
|
—
|
|
(0.08)
|
|
—
|
|
(11)
|
|
—
|
|
|
|
|
|
|
|
|
|
Milling
Products: (3)
|
$
|
(2)
|
|
$
|
(2)
|
|
$
|
(0.01)
|
|
$
|
(0.02)
|
|
$
|
(3)
|
|
$
|
(3)
|
|
|
Severance, employee
benefit, and other costs
|
(2)
|
|
(2)
|
|
(0.01)
|
|
(0.02)
|
|
(3)
|
|
(2)
|
|
|
Impairment
charges
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1)
|
|
|
|
|
|
|
|
|
|
Sugar &
Bioenergy: (4)
|
$
|
(29)
|
|
$
|
(10)
|
|
$
|
(0.21)
|
|
$
|
(0.07)
|
|
$
|
(30)
|
|
$
|
(10)
|
|
|
Severance, employee
benefit, and other costs
|
(5)
|
|
(1)
|
|
(0.04)
|
|
—
|
|
(6)
|
|
(1)
|
|
|
Impairment
charges
|
—
|
|
(1)
|
|
—
|
|
(0.01)
|
|
—
|
|
(1)
|
|
|
Indirect tax
credits
|
—
|
|
8
|
|
—
|
|
0.05
|
|
—
|
|
8
|
|
|
Sugar restructuring
charges
|
(8)
|
|
(16)
|
|
(0.06)
|
|
(0.11)
|
|
(8)
|
|
(16)
|
|
|
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 and
Other Unallocated: (6)
|
$
|
6
|
|
$
|
49
|
|
$
|
0.04
|
|
$
|
0.35
|
|
$
|
(12)
|
|
$
|
—
|
|
|
Income tax benefits
(charges)
|
15
|
|
49
|
|
0.11
|
|
0.35
|
|
—
|
|
—
|
|
|
Loss on
extinguishment of debt
|
(9)
|
|
—
|
|
(0.07)
|
|
—
|
|
(12)
|
|
—
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
(79)
|
|
$
|
15
|
|
$
|
(0.56)
|
|
$
|
0.10
|
|
$
|
(108)
|
|
$
|
(41)
|
|
|
Consolidated
Earnings Data (Unaudited)
|
|
|
Quarter Ended
September 30,
|
Nine Months
Ended
September 30, 2018
|
|
(US$ in millions,
except per share data)
|
2018
|
2017
|
2018
|
2017
|
|
Net sales
|
$
|
11,412
|
|
$
|
11,423
|
|
$
|
34,200
|
|
$
|
34,189
|
|
|
Cost of goods
sold
|
(10,494)
|
|
(10,934)
|
|
(32,356)
|
|
(32,886)
|
|
|
Gross
profit
|
918
|
|
489
|
|
1,844
|
|
1,303
|
|
|
Selling, general and
administrative expenses
|
(333)
|
|
(339)
|
|
(1,054)
|
|
(1,044)
|
|
|
Foreign exchange
gains (losses)
|
(20)
|
|
1
|
|
(116)
|
|
108
|
|
|
Other income
(expense) – net
|
(19)
|
|
25
|
|
9
|
|
24
|
|
|
EBIT attributable to
noncontrolling interest (a) (8)
|
(11)
|
|
(1)
|
|
(16)
|
|
(10)
|
|
|
Total Segment EBIT
(7)
|
535
|
|
175
|
|
667
|
|
381
|
|
|
Interest
income
|
7
|
|
9
|
|
21
|
|
29
|
|
|
Interest
expense
|
(101)
|
|
(64)
|
|
(265)
|
|
(191)
|
|
|
Income tax (expense)
benefit
|
(85)
|
|
(29)
|
|
(106)
|
|
(2)
|
|
|
Noncontrolling
interest share of interest and tax (a) (8)
|
2
|
|
1
|
|
3
|
|
3
|
|
|
Income (loss) from
continuing operations, net of tax
|
358
|
|
92
|
|
320
|
|
220
|
|
|
Income (loss) from
discontinued operations, net of tax
|
7
|
|
—
|
|
12
|
|
—
|
|
|
Net income (loss)
attributable to Bunge (8)
|
365
|
|
92
|
|
332
|
|
220
|
|
|
Convertible
preference share dividends
|
(8)
|
|
(8)
|
|
(25)
|
|
(25)
|
|
|
Net income (loss)
available to Bunge common shareholders
|
$
|
357
|
|
$
|
84
|
|
$
|
307
|
|
$
|
195
|
|
|
|
|
|
|
|
Net income (loss)
per common share diluted attributable to
Bunge common shareholders (9)
|
|
|
|
|
|
Continuing
operations
|
$
|
2.39
|
|
$
|
0.59
|
|
$
|
2.08
|
|
$
|
1.38
|
|
|
Discontinued
operations
|
0.05
|
|
—
|
|
0.08
|
|
(0.01)
|
|
|
Net income (loss)
per common share - diluted
|
$
|
2.44
|
|
$
|
0.59
|
|
$
|
2.16
|
|
$
|
1.37
|
|
|
Weighted–average
common shares outstanding - diluted
|
150
|
|
142
|
|
142
|
|
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
September 30,
|
Nine Months
Ended
September 30,
|
|
(US$ in millions, except volumes)
|
2018
|
2017
|
2018
|
2017
|
|
Volumes (in
thousands of metric tons):
|
|
|
|
|
|
Agribusiness
|
37,690
|
|
37,316
|
|
110,893
|
|
108,512
|
|
|
Edible Oil
Products
|
2,332
|
|
1,945
|
|
6,601
|
|
5,681
|
|
|
Milling
Products
|
1,151
|
|
1,127
|
|
3,463
|
|
3,300
|
|
|
Sugar &
Bioenergy
|
1,955
|
|
2,696
|
|
4,972
|
|
6,677
|
|
|
Fertilizer
|
448
|
|
422
|
|
874
|
|
830
|
|
|
|
|
|
|
|
Net
sales:
|
|
|
|
|
|
Agribusiness
|
$
|
7,905
|
|
$
|
7,720
|
|
$
|
24,092
|
|
$
|
23,837
|
|
|
Edible Oil
Products
|
2,298
|
|
2,027
|
|
6,772
|
|
5,877
|
|
|
Milling
Products
|
427
|
|
397
|
|
1,262
|
|
1,169
|
|
|
Sugar &
Bioenergy
|
629
|
|
1,158
|
|
1,774
|
|
3,052
|
|
|
Fertilizer
|
153
|
|
121
|
|
300
|
|
254
|
|
|
Total
|
$
|
11,412
|
|
$
|
11,423
|
|
$
|
34,200
|
|
$
|
34,189
|
|
|
Gross
profit:
|
|
|
|
|
|
Agribusiness
|
$
|
674
|
|
$
|
260
|
|
$
|
1,231
|
|
$
|
695
|
|
|
Edible Oil
Products
|
134
|
|
125
|
|
383
|
|
358
|
|
|
Milling
Products
|
58
|
|
59
|
|
175
|
|
155
|
|
|
Sugar &
Bioenergy
|
19
|
|
36
|
|
17
|
|
78
|
|
|
Fertilizer
|
33
|
|
9
|
|
38
|
|
17
|
|
|
Total
|
$
|
918
|
|
$
|
489
|
|
$
|
1,844
|
|
$
|
1,303
|
|
|
Selling, general
and administrative expenses:
|
|
|
|
|
|
Agribusiness
|
$
|
(173)
|
|
$
|
(186)
|
|
$
|
(536)
|
|
$
|
(583)
|
|
|
Edible Oil
Products
|
(100)
|
|
(87)
|
|
(305)
|
|
(258)
|
|
|
Milling
Products
|
(31)
|
|
(33)
|
|
(103)
|
|
(103)
|
|
|
Sugar &
Bioenergy
|
(22)
|
|
(31)
|
|
(91)
|
|
(87)
|
|
|
Fertilizer
|
(7)
|
|
(2)
|
|
(19)
|
|
(13)
|
|
|
Total
|
$
|
(333)
|
|
$
|
(339)
|
|
$
|
(1,054)
|
|
$
|
(1,044)
|
|
|
Foreign exchange
gains (losses):
|
|
|
|
|
|
Agribusiness
|
$
|
(23)
|
|
$
|
1
|
|
$
|
(116)
|
|
$
|
93
|
|
|
Edible Oil
Products
|
(2)
|
|
—
|
|
2
|
|
4
|
|
|
Milling
Products
|
4
|
|
—
|
|
4
|
|
(1)
|
|
|
Sugar &
Bioenergy
|
3
|
|
1
|
|
—
|
|
10
|
|
|
Fertilizer
|
(2)
|
|
(1)
|
|
(6)
|
|
2
|
|
|
Total
|
$
|
(20)
|
|
$
|
1
|
|
$
|
(116)
|
|
$
|
108
|
|
|
Segment
EBIT:
|
|
|
|
|
|
Agribusiness
|
$
|
464
|
|
$
|
103
|
|
$
|
612
|
|
$
|
230
|
|
|
Edible Oil
Products
|
30
|
|
34
|
|
69
|
|
98
|
|
|
Milling
Products
|
30
|
|
23
|
|
73
|
|
48
|
|
|
Sugar &
Bioenergy
|
—
|
|
10
|
|
(87)
|
|
1
|
|
|
Fertilizer
|
23
|
|
5
|
|
12
|
|
4
|
|
|
Unallocated
(6)
|
(12)
|
|
—
|
|
(12)
|
|
—
|
|
|
Total Segment EBIT
(7)
|
$
|
535
|
|
$
|
175
|
|
$
|
667
|
|
$
|
381
|
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
|
September
30,
|
December
31,
|
|
(US$ in
millions)
|
2018
|
2017
|
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
267
|
|
$
|
601
|
|
|
Trade accounts
receivable, net
|
1,713
|
|
1,501
|
|
|
Inventories
(10)
|
7,183
|
|
5,074
|
|
|
Other current
assets
|
3,948
|
|
3,227
|
|
|
Total current
assets
|
13,111
|
|
10,403
|
|
|
Property, plant and
equipment, net
|
5,164
|
|
5,310
|
|
|
Goodwill and other
intangible assets, net
|
1,434
|
|
838
|
|
|
Investments in
affiliates
|
454
|
|
461
|
|
|
Time deposits under
trade structured finance program
|
—
|
|
315
|
|
|
Other non-current
assets
|
1,283
|
|
1,544
|
|
|
Total
assets
|
$
|
21,446
|
|
$
|
18,871
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term
debt
|
$
|
2,057
|
|
$
|
304
|
|
|
Current portion of
long-term debt
|
331
|
|
15
|
|
|
Letter of credit
obligations under trade structured finance program
|
—
|
|
315
|
|
|
Trade accounts
payable
|
3,274
|
|
3,395
|
|
|
Other current
liabilities
|
2,639
|
|
2,186
|
|
|
Total current
liabilities
|
8,301
|
|
6,215
|
|
|
Long-term
debt
|
4,912
|
|
4,160
|
|
|
Other non-current
liabilities
|
1,308
|
|
1,139
|
|
|
Total
liabilities
|
14,521
|
|
11,514
|
|
|
Redeemable
noncontrolling interest
|
438
|
|
—
|
|
|
Total
equity
|
6,487
|
|
7,357
|
|
|
Total liabilities,
redeemable noncontrolling interest and equity
|
$
|
21,446
|
|
$
|
18,871
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
Nine Months
Ended
September 30,
|
|
(US$ in
millions)
|
2018
|
2017
|
|
Operating
Activities
|
|
|
|
Net income (loss)
(8)
|
$
|
345
|
|
$
|
227
|
|
|
Adjustments to
reconcile net income (loss) to cash provided by (used for)
operating
activities:
|
|
|
|
Foreign
exchange (gain) loss on net debt
|
134
|
|
28
|
|
|
Depreciation, depletion and amortization
|
463
|
|
448
|
|
|
Deferred
income tax (benefit)
|
11
|
|
(8)
|
|
|
Other,
net
|
115
|
|
75
|
|
|
Changes in operating
assets and liabilities, excluding the effects of
acquisitions:
|
|
|
|
Trade
accounts receivable
|
(159)
|
|
(200)
|
|
|
Inventories
|
(2,465)
|
|
(837)
|
|
|
Secured
advances to suppliers
|
(195)
|
|
101
|
|
|
Trade
accounts payable and accrued liabilities
|
182
|
|
265
|
|
|
Advances
on sales
|
(157)
|
|
(200)
|
|
|
Net
unrealized gain (loss) on derivative contracts
|
23
|
|
153
|
|
|
Margin
deposits
|
(266)
|
|
(26)
|
|
|
Marketable securities
|
92
|
|
(147)
|
|
|
Beneficial interest in securitized trade receivables
(11)
|
(1,439)
|
|
(1,768)
|
|
|
Other,
net
|
31
|
|
(145)
|
|
|
Cash provided by (used for) operating activities
|
(3,285)
|
|
(2,034)
|
|
|
Investing
Activities
|
|
|
|
Payments made for
capital expenditures
|
(318)
|
|
(485)
|
|
|
Acquisitions of
businesses (net of cash acquired)
|
(968)
|
|
(369)
|
|
|
Proceeds from
investments
|
1,080
|
|
398
|
|
|
Payments for
investments
|
(1,163)
|
|
(686)
|
|
|
Proceeds from
beneficial interest in securitized trade receivables
(11)
|
1,432
|
|
1,732
|
|
|
Settlement of net
investment hedges
|
124
|
|
(23)
|
|
|
Payments for
investments in affiliates
|
(3)
|
|
(77)
|
|
|
Other, net
|
40
|
|
7
|
|
|
Cash provided by (used for) investing activities
|
224
|
|
497
|
|
|
Financing
Activities
|
|
|
|
Net borrowings
(repayments) of short-term debt
|
1,799
|
|
750
|
|
|
Net proceeds
(repayments) of long-term debt
|
1,142
|
|
402
|
|
|
Proceeds from the
exercise of options for common shares
|
11
|
|
58
|
|
|
Dividends
paid
|
(225)
|
|
(207)
|
|
|
Other, net
|
(18)
|
|
(34)
|
|
|
Cash provided by (used for) financing activities
|
2,709
|
|
969
|
|
|
Effect of exchange
rate changes on cash and cash equivalents, and restricted
cash
|
18
|
|
22
|
|
|
Net increase
(decrease) in cash and cash equivalents, and restricted
cash
|
(334)
|
|
(546)
|
|
|
Cash and cash
equivalents, and restricted cash - beginning of
period
|
605
|
|
938
|
|
|
Cash and cash
equivalents, and restricted cash - end of period
|
$
|
271
|
|
$
|
392
|
|
- 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
September 30,
|
Nine Months
Ended
September 30,
|
|
(US$ in
millions)
|
2018
|
2017
|
2018
|
2017
|
|
Net income (loss)
attributable to Bunge
|
$
|
365
|
|
$
|
92
|
|
$
|
332
|
|
$
|
220
|
|
|
Interest
income
|
(7)
|
|
(9)
|
|
(21)
|
|
(29)
|
|
|
Interest
expense
|
101
|
|
64
|
|
265
|
|
191
|
|
|
Income tax expense
(benefit)
|
85
|
|
29
|
|
106
|
|
2
|
|
|
(Income) loss from
discontinued operations, net of tax
|
(7)
|
|
—
|
|
(12)
|
|
—
|
|
|
Noncontrolling
interest share of interest and tax
|
(2)
|
|
(1)
|
|
(3)
|
|
(3)
|
|
|
Total Segment
EBIT
|
535
|
|
175
|
|
667
|
|
381
|
|
|
Certain (gains) and
charges
|
38
|
|
29
|
|
108
|
|
41
|
|
|
Total Segment
EBIT, adjusted
|
$
|
573
|
|
$
|
204
|
|
$
|
775
|
|
$
|
422
|
|
- 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
(US$ in millions,
except per share data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Net Income (loss)
attributable to Bunge
|
$
|
365
|
|
|
$
|
92
|
|
|
$
|
332
|
|
|
$
|
220
|
|
|
Adjusted for certain
gains and charges:
|
|
|
|
|
|
|
|
|
Severance, employee benefit,
and other costs
|
7
|
|
|
9
|
|
|
37
|
|
|
9
|
|
|
Impairment
charges
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|
Sugar restructuring
charges
|
2
|
|
|
4
|
|
|
8
|
|
|
16
|
|
|
Indirect tax
credits
|
—
|
|
|
(8)
|
|
|
—
|
|
|
(8)
|
|
|
Acquisition and integration
costs
|
1
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss, net on
disposition of equity investment and subsidiary
|
14
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
Loss on debt
extinguishment
|
9
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
Income tax charges
(benefits)
|
(15)
|
|
|
—
|
|
|
(15)
|
|
|
(49)
|
|
|
Adjusted Net
Income attributable to Bunge
|
383
|
|
|
114
|
|
|
411
|
|
|
205
|
|
|
Discontinued
operations
|
(7)
|
|
|
—
|
|
|
(12)
|
|
|
—
|
|
|
Convertible preference
shares dividends
|
—
|
|
|
(8)
|
|
|
(25)
|
|
|
(25)
|
|
|
Net income (loss)
- adjusted (excluding certain gains & charges
and discontinued operations)
|
$
|
376
|
|
|
$
|
106
|
|
|
$
|
374
|
|
|
$
|
180
|
|
|
Weighted-average
common shares outstanding - diluted
|
150
|
|
|
142
|
|
|
142
|
|
|
141
|
|
|
Net income (loss)
per common share - diluted, adjusted
(excluding certain gains & charges and discontinued
operations)
|
$
|
2.52
|
|
|
$
|
0.75
|
|
|
$
|
2.64
|
|
|
$
|
1.28
|
|
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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Continuing
operations:
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share - diluted adjusted
(excluding certain gains & charges and discontinued
operations)
|
$
|
2.52
|
|
|
$
|
0.75
|
|
|
$
|
2.64
|
|
|
$
|
1.28
|
|
|
Certain gains &
charges (see Additional Financial Information
section)
|
(0.13)
|
|
|
(0.16)
|
|
|
(0.56)
|
|
|
0.10
|
|
|
Net income (loss) per
common share - continuing operations
|
2.39
|
|
|
0.59
|
|
|
2.08
|
|
|
1.38
|
|
|
Discontinued
operations:
|
0.05
|
|
|
—
|
|
|
0.08
|
|
|
(0.01)
|
|
|
Net income (loss)
per common share - diluted
|
$
|
2.44
|
|
|
$
|
0.59
|
|
|
$
|
2.16
|
|
|
$
|
1.37
|
|
- 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.
|
Three Months
Ended
September 30, 2018
|
|
Nine Months
Ended
September 30, 2018
|
|
Severance
and
Employee
Benefit Costs
|
Other
Costs
|
Total
Costs
|
|
Severance
and
Employee
Benefit Costs
|
Other
Costs
|
Total
Costs
|
|
Global
Competitiveness Program:
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
1
|
|
$
|
4
|
|
$
|
5
|
|
|
$
|
8
|
|
$
|
16
|
|
$
|
24
|
|
|
Edible Oil
Products
|
—
|
|
1
|
|
1
|
|
|
2
|
|
4
|
|
6
|
|
|
Milling Products
|
—
|
|
—
|
|
—
|
|
|
—
|
|
2
|
|
2
|
|
|
Sugar &
Bioenergy
|
—
|
|
1
|
|
1
|
|
|
2
|
|
4
|
|
6
|
|
|
Fertilizer
|
—
|
|
—
|
|
—
|
|
|
—
|
|
1
|
|
1
|
|
|
Costs included in
Selling, general
and administrative expenses
|
1
|
|
6
|
|
7
|
|
|
$
|
12
|
|
$
|
27
|
|
$
|
39
|
|
|
Other associated cost
reduction and
strategic initiatives:
|
|
|
|
|
|
|
|
|
Costs included in Cost of
goods sold
|
2
|
|
—
|
|
2
|
|
|
$
|
8
|
|
$
|
—
|
|
$
|
8
|
|
|
Total GCP and Other
costs
|
$
|
3
|
|
$
|
6
|
|
$
|
9
|
|
|
$
|
20
|
|
$
|
27
|
|
$
|
47
|
|
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 third quarter
EBIT includes charges related to the GCP of $(5) million [$(1)
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
(SG&A). 2018 third quarter EBIT also includes $(2)
million for severance and other employee benefit costs related to
other industrial initiatives recorded in Cost of goods sold (COGS),
and a $(14) million loss on the sale of an equity
investment.
|
|
|
|
EBIT for the nine
months ended September 30, 2018 includes charges related to the GCP
of $(24) million [$(8) million for severance and other employee
benefit costs and $(16) million for other program costs], all of
which was included in SG&A. EBIT for the nine
months ended September 30, 2018 also includes $(6) million for
severance and other employee benefit costs related to other
industrial initiatives recorded in COGS and a net $(13) million
loss on sales of an equity investment and a subsidiary.
|
|
|
|
2017 EBIT for the
three and nine months ended September 30, includes charges related
to the GCP of $(7) million [$(4) million for severance and other
employee benefit costs and $(3) million for other program costs],
all of which was included in SG&A. 2017 EBIT also
includes $(17) million of impairment charges [$(13) million for our
palm oil plantation joint venture and $(4) million for impairment
of intangible assets related to patents.] Of these amounts,
$(4) million was included in SG&A.
|
|
|
|
(2) Edible Oil
Products:
|
|
|
2018 third 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 (SG&A). Additionally, $(1)
million of acquisition and integration costs related to the
acquisition of IOI Loders Croklaan were incurred recorded within
SG&A.
|
|
|
|
EBIT for the nine
months ended September 30, 2018 includes charges related to the GCP
of $(6) million [$(2) million for severance and other employee
benefit costs and $(4) million for other program costs], all of
which was included in SG&A. Additionally, $(11) million
of acquisition and integration costs related to the acquisition of
IOI Loders Croklaan were incurred, all of which were included
within SG&A.
|
|
|
|
2017 EBIT for the
three and nine months ended September 30, includes charges related
to the GCP of $(2) million for other program costs, all of which
was included in SG&A. 2017 EBIT also includes $(1) million for
severance and other employee benefit costs related to other
industrial initiatives recorded in COGS, as well as $(1) million of
impairment charges on intangible assets related to patents, which
is included in SG&A.
|
|
|
|
(3) Milling
Products:
|
|
|
EBIT for the nine
months ended September 30, 2018 includes charges related to the GCP
of $(2) million for other program costs, all of which was included
in SG&A. EBIT for the nine months ended September
30, 2018 also includes $(1) million for severance and other
employee benefit costs related to other industrial initiatives
recorded in COGS.
|
|
|
|
2017 EBIT for the
three and nine months ended September 30, includes charges related
to the GCP of $(1) million for severance and other employee benefit
costs, which was included in SG&A. 2017 EBIT also includes $(1)
million for severance and other employee benefit costs related to
other industrial initiatives recorded in COGS, as well as $(1)
million of impairment charges on intangible assets related to
patents, which is included in SG&A.
|
|
|
|
(4) Sugar &
Bioenergy:
|
|
2018 third quarter
EBIT includes charges related to the GCP of $(1) million for other
program costs, all of which was included in SG&A. 2018
third quarter EBIT also includes Sugar restructuring charges of
$(2) million recorded in COGS.
|
|
|
|
EBIT for the nine
months ended September 30, 2018 includes charges related to the GCP
of $(6) million [$(2) million for severance and other employee
benefit costs and $(4) million for other program costs], all of
which was included in SG&A. EBIT for the nine months
ended September 30, 2018 also includes Sugar restructuring charges
of $(8) million recorded in COGS and a loss of $(16) million on the
sale of an equity investment in Brazil, recorded in Other income
(expense) - net.
|
|
|
|
2017 EBIT for the
three and nine months ended September 30, includes charges related
to the GCP of $(1) million for other program costs, all of which
was included in SG&A. 2017 EBIT also includes $(1) million of
impairment charges on intangible assets related to patents, which
is included in SG&A.
|
|
|
|
2017 charges also
include Sugar restructuring charges of which $(4) million and $(16)
million, that were recorded in the three and nine months ended
September 30, 2017, respectively. Of these amounts,
$(0) million and $(1) million, were included within SG&A during
the three and nine months ended September 30, 2017, respectively.
Additionally, EBIT for the three and nine months ended September
30, 2017 includes gains of $8 million related to indirect tax
credits, none of which was included within SG&A.
|
|
|
|
(5)
Fertilizer:
|
|
|
EBIT for the nine
months ended September 30, 2018 includes charges related to the GCP
of $(1) million for other program costs, all of which was included
in SG&A. EBIT for the nine months ended September 30,
2018 also includes $(2) million for severance and other employee
benefit costs related to other industrial initiatives recorded in
COGS.
|
|
|
|
(6) Income Taxes
and Other Unallocated:
|
|
|
2018 EBIT for the
three and nine months ended September 30, includes a loss on the
extinguishment of debt of $12 million.
|
|
|
|
In the three and nine
months ended September 30, 2018, income tax benefits (charges)
includes total benefits of $15 million for the favorable resolution
of uncertain tax positions in North America.
|
|
|
|
In the nine months
ended September 30, 2017, income tax benefits (charges) includes
total benefits of $49 million, $32 million for the favorable
resolution of uncertain tax positions 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:
|
|
|
Nine Months
Ended
September 30,
|
|
|
2018
|
|
2017
|
|
Net income (loss)
attributable to Bunge
|
$
|
332
|
|
|
$
|
220
|
|
|
EBIT attributable to
noncontrolling interest
|
16
|
|
|
10
|
|
|
Noncontrolling
interest share of interest and tax
|
(3)
|
|
|
(3)
|
|
|
Net income
(loss)
|
$
|
345
|
|
|
$
|
227
|
|
|
(9)
|
Approximately 5
million and 4 million outstanding stock options and contingently
issuable restricted stock units were not dilutive and not included
in the weighted-average number of common shares outstanding for the
three and nine months ended September 30, 2018,
respectively. Additionally, approximately 8 million
weighted-average common shares that are issuable upon conversion of
the convertible preference shares were not dilutive and not
included in the weighted-average number of shares outstanding for
the nine months ended September 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 nine months ended September 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 nine months ended
September 30, 2017.
|
|
|
|
(10)
|
Includes readily
marketable inventories of $5,706 million and $4,056 million at
September 30, 2018 and December 31, 2017, respectively.
Of these amounts, $4,533 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
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SOURCE Bunge Limited