WHITE PLAINS, N.Y.,
Feb. 10, 2011 /PRNewswire/ -- Bunge
Limited (NYSE: BG)
- Total segment EBIT of $381
million, an increase of $363
million compared to the same quarter last year
- Strong performance in agribusiness and food &
ingredients
- Sugar & bioenergy impacted by poor cane crop
- Expect favorable business conditions in 2011
Financial Highlights
|
|
|
Quarter
Ended
|
Year
Ended
|
|
US$ in
millions, except per share data
|
12/31/10
|
12/31/09
|
12/31/10
|
12/31/09
|
|
Volume (000
metric tons)
|
32,179
|
33,287
|
135,205
|
139,387
|
|
Net
sales
|
$12,726
|
$10,436
|
$45,707
|
$41,926
|
|
Total
segment EBIT (a)
|
$381
|
$18
|
$3,228
|
$443
|
|
Agribusiness
|
$377
|
$65
|
$840
|
$812
|
|
Sugar &
Bioenergy
|
$(56)
|
$(5)
|
$(13)
|
$8
|
|
Edible Oil
Products
|
$45
|
$114
|
$80
|
$181
|
|
Milling
Products
|
$14
|
$18
|
$67
|
$58
|
|
Fertilizer
|
$1
|
$(174)
|
$2,344
|
$(616)
|
|
Net income
attributable to Bunge
|
$301
|
$11
|
$2,354
|
$361
|
|
Earnings per
common share-diluted
|
$1.95
|
$(0.21)
|
$15.06
|
$2.22
|
|
Earnings per
common share-diluted (a)
|
|
|
|
|
|
(excl.
certain gains & charges)
|
$1.99
|
$(0.55)
|
$4.13
|
$1.70
|
|
|
|
|
|
|
|
|
(a) Total segment earnings before interest and tax
("EBIT") and earnings per common share-diluted (excl. certain gains
and charges) 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,
respectively.
Overview
Alberto Weisser, Bunge's Chairman
and Chief Executive Officer, stated, "Bunge had a strong finish to
the year. Our team managed volatile markets well and our
global asset network enabled us to be responsive to customers in
the face of supply disruptions.
"Solid results in agribusiness and food & ingredients were
offset somewhat by difficulties in sugar & bioenergy.
Lower milling volumes from reduced sugarcane yields due to
dry weather in Brazil, as well as
challenges related to the start-up of some mills, contributed to
significantly lower than expected results in this segment during
the period.
"We enter 2011 with good momentum. During the year we will
strengthen our core business by inaugurating new soy processing
facilities in Vietnam and
China, and our export grain
terminal in the Pacific Northwest will come on line in time for the
U.S. harvest. We are also expanding our grain elevator
network in the U.S. to better serve domestic and international
trade flows. During this past year we've made great progress
in building a solid foundation for our global sugar platform, a
growth business in which we have excellent assets and strong
expansion capability.
"As we look ahead, high prices are giving farmers clear
incentive to produce larger crops, which are needed to help build
global stocks. In the interim, market volatility and concern
over high food prices will likely persist. At these times,
the services that Bunge provides, which facilitate global trade and
improve the efficiency of the food production chain, are more
valuable than ever."
Fourth Quarter Results
Agribusiness
Higher results in the quarter were primarily due to a strong
performance in our grain merchandising business, where we
effectively managed risk in a volatile environment while meeting
the product needs of our customers. Oilseed processing was
slightly below last year. Volumes in the quarter were higher
primarily due to improved crop supplies in South America, which experienced
weather-related shortages the previous year. Fourth quarter
2009 EBIT included charges of $26
million related to impairments of long-term assets.
Sugar & Bioenergy
Results in the quarter were negatively impacted by lower
sugarcane yields from dry weather in Brazil, which significantly reduced the
production of sugar and ethanol. Results were also impacted
by challenges related to the start-up of our Pedro Afonso mill and the expansion of crushing
capacity at our Santa Juliana mill,
both of which came on line during the quarter. Results in our
sugar merchandising business exceeded last year due to higher
margins.
Edible Oil Products
Results in the fourth quarter of 2009 included a gain of
$66 million on the sale of our joint
venture interest in Saipol and approximately $6 million of Saipol operating results.
Excluding these Saipol-related amounts, results in the
quarter were higher than last year, primarily due to improved
performance in our European business, which benefited from higher
margins and volumes.
Milling Products
Results in the quarter were adversely impacted by a $9 million impairment charge related to a
long-term supply contract that accompanied an acquisition of a
wheat mill. Excluding this charge, performance this quarter
improved primarily due to higher margins in wheat milling.
Fertilizer
Results in the quarter were significantly improved from the
prior-year period, with higher margins in our Brazilian business
partially offset by lower volumes. However, the business is
still in transition following the sale of our nutrients assets
earlier in the year. Our Argentine business performed well in
the quarter, benefiting from higher volumes and margins. Last
year included the results of Bunge's nutrients assets in
Brazil.
Financial Costs
Interest expense decreased in the quarter due to lower average
interest rates on debt.
Income Taxes
The effective tax rate for the year ended December 31, 2010 was 23%, reflecting the gain on
the sale of our fertilizer nutrients assets, compared to a tax
benefit of $110 million for the same
period last year.
Cash Flow
Cash used for operations in the year ended December 31, 2010 was $2,435 million. The negative cash flow from
operations in the period was primarily due to increased working
capital resulting from higher commodity prices. Also
impacting cash flow were payments of withholding taxes and
transaction costs totaling $424
million related to the sale of the Brazilian fertilizer
nutrients assets earlier in the year. Cash used for
operations in the same period last year was $368 million.
Outlook
Drew Burke, Chief Financial
Officer, stated, "Starting this year, we are modifying our approach
to guidance and will no longer provide annual earnings per share
figures. The natural volatility of our industry makes it
difficult to forecast earnings per share with precision. With
this in mind, and with a continued commitment to robust disclosure,
we believe we can offer a clearer picture to investors by providing
qualitative commentary on our value drivers, strategic initiatives,
key metrics and other factors critical to our business and
operating environment.
"Looking to 2011, the favorable environment in agribusiness
should continue. Demand for our products is growing, and the
world needs big harvests to meet this rise in consumption.
Global trade should remain strong, which should benefit our
grain merchandising operations. While there is still excess
capacity in certain regions, oilseed processing should see improved
product demand. And as mentioned earlier, we should benefit
from our new grain and oilseed investments coming on line during
the year.
"In sugar & bioenergy, the drought this past year in
Brazil reduced the amount of
sugarcane we will have available for milling in 2011. We
expect milling volumes of approximately 17 million metric tons of
cane, which is less than our 21 million metric tons of industrial
capacity, but represents a significant increase over 2010 levels of
approximately 13.5 million metric tons. We expect all of our
eight mills to be operating. Global demand for sugar is
growing, and we expect a positive environment for our merchandising
business. The Brazilian ethanol market remains strong.
Our results in this segment will be significantly weighted
toward the second half of the year, due to the seasonality of the
Brazilian sugarcane harvest.
"The positive trend we have seen in food & ingredients over
the past two years should continue.
"In fertilizer, farm economics are good, which should result in
increased plantings and demand for fertilizer. We expect our
volumes to improve as the adjustments we are making to our
Brazilian business are completed.
"Additionally, we expect the following for 2011:
depreciation, depletion and amortization of approximately
$500 million; capital expenditures of
about $1 billion, approximately 30%
of which will be invested in maintenance, safety and environmental
projects; and a full year tax rate of approximately 15%."
Conference Call and Webcast Details
Bunge Limited's management will host a conference call at
10:00 a.m. EST on February 10, 2011 to discuss the company's
results.
A slide presentation to accompany the discussion of results will
be posted in the "Investor Information" section of
www.bunge.com.
To listen to the call from within the U.S., dial (800) 446-1671.
From outside the U.S. or Canada, dial (847) 413-3362. When
prompted, enter confirmation code 28917825. The call will
also be webcast live at www.bunge.com.
To access the webcast, select the "Investor Information" link on
the Bunge homepage, then select "Webcasts and News Alerts."
Select "Q4 2010 Bunge Limited Conference Call" and follow the
prompts.
A replay of the call will be available later in the day on
February 10, 2011, continuing through
March 13, 2011. To listen to
the replay from within the U.S., dial (888) 843-7419. From
outside the U.S. or Canada, dial
(630) 652-3042. When prompted, enter confirmation code
28917825. A replay will also be available on the company's
website. To access it, select the "Investor Information" link
on the Bunge homepage, then select "Audio Archives" and follow the
prompts.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global
agribusiness and food company with approximately 32,000 employees
in more than 30 countries. Bunge buys, sells, stores and transports
oilseeds and grains to serve customers worldwide; processes
oilseeds to make protein meal for animal feed and edible oil
products for commercial customers and consumers; produces sugar and
ethanol from sugarcane; mills wheat and corn to make ingredients
used by food companies; and sells fertilizer in North and
South America. Founded in 1818,
the company is headquartered in White
Plains, New York.
Cautionary Statement Concerning Forward-Looking
Statements
This press release contains both historical and forward-looking
statements. All statements, other than statements of historical
fact are, or may be deemed to be, forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are not based on
historical facts, but rather reflect our current expectations and
projections about our future results, performance, prospects and
opportunities. We have tried to identify these forward-looking
statements by using words including "may," "will," "should,"
"could," "expect," "anticipate," "believe," "plan," "intend,"
"estimate," "continue" and similar expressions. These
forward-looking statements are subject to a number of risks,
uncertainties and other factors that could cause our actual
results, performance, prospects or opportunities to differ
materially from those expressed in, or implied by, these
forward-looking statements. The following important factors, among
others, could affect our business and financial performance:
industry conditions, including fluctuations in supply, demand and
prices for agricultural commodities and other raw materials and
products used in our business; fluctuations in energy and freight
costs and competitive developments in our industries; the effects
of weather conditions and the outbreak of crop and animal disease
on our business; global and regional agricultural, economic,
financial and commodities market, political, social and health
conditions; the outcome of pending regulatory and legal
proceedings; our ability to complete, integrate and benefit from
acquisitions, dispositions, joint ventures and strategic alliances;
our ability to achieve the efficiencies, savings and other benefits
anticipated from our cost reduction, margin improvement and other
business optimization initiatives; changes in government policies,
laws and regulations affecting our business, including agricultural
and trade policies, tax regulations and biofuels legislation; and
other factors affecting our business generally. The forward-looking
statements included in this release are made only as of the date of
this release, and except as otherwise required by federal
securities law, we do not have any obligation to publicly update or
revise any forward-looking statements to reflect subsequent events
or circumstances.
Additional Financial Information
The following table provides a summary of certain gains and
charges that may be of interest to investors. The table
includes a description of these items and their effect on total
segment EBIT, income from operations before income tax, net income
attributable to Bunge and earnings per share-diluted for the
quarter and year ended December 31,
2010 and 2009.
|
|
(In millions, except per share
data)
|
Total
Segment
EBIT
|
Income
From
Operations
Before
Income
Tax
|
Net
Income
Attributable
to
Bunge
|
Earnings
Per
Share
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December
31:
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Impairment charges
(3)
|
$
|
(9)
|
$
|
(26)
|
$
|
(9)
|
$
|
(26)
|
$
|
(6)
|
$
|
(20)
|
$
|
(0.04)
|
$
|
(0.15)
|
|
Gain on asset
acquisitions/dispositions (7)
|
|
-
|
|
66
|
|
-
|
|
-
|
|
-
|
|
66
|
|
-
|
|
0.49
|
|
Total
|
$
|
(9)
|
$
|
40
|
$
|
(9)
|
$
|
(26)
|
$
|
(6)
|
$
|
46
|
$
|
(0.04)
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except per share
data)
|
Total
Segment
EBIT
|
Income
From
Operations
Before
Income
Tax
|
Net
Income
Attributable
to
Bunge
|
Earnings
Per
Share
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31:
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Gain on sale of fertilizer
nutrients assets (1)
|
$
|
2,440
|
$
|
-
|
$
|
2,440
|
$
|
-
|
$
|
1,901
|
$
|
-
|
$
|
12.16
|
$
|
-
|
|
Loss on extinguishment of debt
(2)
|
|
(90)
|
|
-
|
|
(90)
|
|
-
|
|
(90)
|
|
-
|
|
(0.58)
|
|
-
|
|
Impairment and restructuring
charges (3)
|
|
(92)
|
|
(26)
|
|
(92)
|
|
(26)
|
|
(76)
|
|
(20)
|
|
(0.49)
|
|
(0.16)
|
|
Inventory valuation adjustment
(4)
|
|
(37)
|
|
-
|
|
(37)
|
|
-
|
|
(24)
|
|
-
|
|
(0.15)
|
|
-
|
|
Acquisition related expenses
(5)
|
|
(11)
|
|
-
|
|
(11)
|
|
-
|
|
(7)
|
|
-
|
|
(0.04)
|
|
-
|
|
Gain on sale of property, plant
and equipment (6)
|
|
6
|
|
-
|
|
6
|
|
-
|
|
4
|
|
-
|
|
0.03
|
|
-
|
|
Gain on asset
acquisitions/dispositions (7)
|
|
-
|
|
66
|
|
-
|
|
66
|
|
-
|
|
66
|
|
-
|
|
0.52
|
|
Transactional tax credit
(8)
|
|
-
|
|
32
|
|
-
|
|
32
|
|
-
|
|
21
|
|
-
|
|
0.16
|
|
Total
|
$
|
2,216
|
$
|
72
|
$
|
2,216
|
$
|
72
|
$
|
1,708
|
$
|
67
|
$
|
10.93
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of
Income (Unaudited)
|
|
|
|
Quarter
Ended
December
31,
|
Year
Ended
December
31,
|
|
(In millions, except per share
data)
|
|
2010
|
|
2009
|
|
|
|
2010
|
|
2009
|
|
Net sales
|
$
|
12,726
|
$
|
10,436
|
|
|
$
|
45,707
|
$
|
41,926
|
|
Cost of goods sold
|
|
(11,897)
|
|
(10,122)
|
|
|
|
(43,196)
|
|
(40,722)
|
|
Gross profit
|
|
829
|
|
314
|
|
|
|
2,511
|
|
1,204
|
|
Selling, general and
administrative expenses
|
|
(439)
|
|
(390)
|
|
|
|
(1,558)
|
|
(1,342)
|
|
Gain on sale of fertilizer
nutrients assets (1)
|
|
-
|
|
-
|
|
|
|
2,440
|
|
-
|
|
Interest income
|
|
7
|
|
26
|
|
|
|
69
|
|
122
|
|
Interest expense (9)
|
|
(57)
|
|
(71)
|
|
|
|
(298)
|
|
(283)
|
|
Loss on extinguishment of debt
(2)
|
|
-
|
|
-
|
|
|
|
(90)
|
|
-
|
|
Foreign exchange gain
(losses)
|
|
24
|
|
(1)
|
|
|
|
2
|
|
469
|
|
Other income
(expense)−net
|
|
(18)
|
|
(13)
|
|
|
|
(26)
|
|
(25)
|
|
Income from operations before
income tax and equity earnings of affiliates
|
|
346
|
|
(135)
|
|
|
|
3,050
|
|
145
|
|
Income tax (expense)
benefit
|
|
(41)
|
|
58
|
|
|
|
(689)
|
|
110
|
|
Equity in earnings of
affiliates
|
|
10
|
|
69
|
|
|
|
27
|
|
80
|
|
Net income
|
|
315
|
|
(8)
|
|
|
|
2,388
|
|
335
|
|
Net (income) loss attributable
to noncontrolling interest
|
|
(14)
|
|
19
|
|
|
|
(34)
|
|
26
|
|
Net income attributable to
Bunge
|
|
301
|
|
11
|
|
|
|
2,354
|
|
361
|
|
Convertible preference share
dividends
|
|
(9)
|
|
(39)
|
|
|
|
(67)
|
|
(78)
|
|
Net income available to Bunge
common shareholders
|
$
|
292
|
$
|
(28)
|
|
|
$
|
2,287
|
$
|
283
|
|
Earnings per common share –
diluted (10):
|
|
|
|
|
|
|
|
|
|
|
|
Earnings to Bunge common
shareholders
|
$
|
1.95
|
$
|
(0.21)
|
|
|
$
|
15.06
|
$
|
2.22
|
|
Weighted–average common shares
outstanding-diluted (10)
|
|
154,382,325
|
|
134,084,639
|
|
|
|
156,274,814
|
|
127,669,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Segment
Information (Unaudited)
|
|
Set forth below is a summary of
certain items in our consolidated statements of income and volumes
by reportable segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
(In millions, except
volumes)
|
|
2010
|
|
2009
|
|
|
|
2010
|
|
2009
|
|
Volumes
(in thousands of metric
tons):
|
|
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
|
25,892
|
|
25,081
|
|
|
|
108,693
|
|
111,040
|
|
Sugar & Bioenergy
|
|
2,020
|
|
2,428
|
|
|
|
8,222
|
|
6,693
|
|
Edible oil products
|
|
1,549
|
|
1,447
|
|
|
|
5,976
|
|
5,688
|
|
Milling products
|
|
1,041
|
|
998
|
|
|
|
4,605
|
|
4,332
|
|
Fertilizer
|
|
1,677
|
|
3,333
|
|
|
|
7,709
|
|
11,634
|
|
Total
|
|
32,179
|
|
33,287
|
|
|
|
135,205
|
|
139,387
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
8,304
|
$
|
6,337
|
|
|
$
|
30,138
|
$
|
27,934
|
|
Sugar & Bioenergy
|
|
1,314
|
|
1,104
|
|
|
|
4,455
|
|
2,577
|
|
Edible oil products
|
|
1,968
|
|
1,650
|
|
|
|
6,783
|
|
6,184
|
|
Milling products
|
|
409
|
|
371
|
|
|
|
1,605
|
|
1,527
|
|
Fertilizer
|
|
731
|
|
974
|
|
|
|
2,726
|
|
3,704
|
|
Total
|
$
|
12,726
|
$
|
10,436
|
|
|
$
|
45,707
|
$
|
41,926
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
619
|
$
|
297
|
|
|
$
|
1,660
|
$
|
1,330
|
|
Sugar & Bioenergy
|
|
(30)
|
|
11
|
|
|
|
101
|
|
49
|
|
Edible oil products
|
|
136
|
|
138
|
|
|
|
427
|
|
412
|
|
Milling products
|
|
42
|
|
40
|
|
|
|
168
|
|
152
|
|
Fertilizer
|
|
62
|
|
(172)
|
|
|
|
155
|
|
(739)
|
|
Total
|
$
|
829
|
$
|
314
|
|
|
$
|
2,511
|
$
|
1,204
|
|
Selling, general and
administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
(236)
|
$
|
(228)
|
|
|
$
|
(789)
|
$
|
(719)
|
|
Sugar & Bioenergy
|
|
(43)
|
|
(13)
|
|
|
|
(139)
|
|
(39)
|
|
Edible oil products
|
|
(86)
|
|
(85)
|
|
|
|
(332)
|
|
(296)
|
|
Milling products
|
|
(28)
|
|
(23)
|
|
|
|
(108)
|
|
(96)
|
|
Fertilizer
|
|
(46)
|
|
(41)
|
|
|
|
(190)
|
|
(192)
|
|
Total
|
$
|
(439)
|
$
|
(390)
|
|
|
$
|
(1,558)
|
$
|
(1,342)
|
|
Foreign exchange gain
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
11
|
$
|
(8)
|
|
|
$
|
(4)
|
$
|
216
|
|
Sugar & Bioenergy
|
|
17
|
|
-
|
|
|
|
30
|
|
2
|
|
Edible oil products
|
|
2
|
|
(3)
|
|
|
|
-
|
|
(4)
|
|
Milling products
|
|
-
|
|
-
|
|
|
|
(1)
|
|
(1)
|
|
Fertilizer
|
|
(6)
|
|
10
|
|
|
|
(23)
|
|
256
|
|
Total
|
$
|
24
|
$
|
(1)
|
|
|
$
|
2
|
$
|
469
|
|
Segment earnings before interest
and tax:
|
|
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
$
|
377
|
$
|
65
|
|
|
$
|
840
|
$
|
812
|
|
Sugar & Bioenergy
|
|
(56)
|
|
(5)
|
|
|
|
(13)
|
|
8
|
|
Edible oil products
|
|
45
|
|
114
|
|
|
|
80
|
|
181
|
|
Milling products
|
|
14
|
|
18
|
|
|
|
67
|
|
58
|
|
Fertilizer
|
|
1
|
|
(174)
|
|
|
|
2,344
|
|
(616)
|
|
Unallocated
|
|
-
|
|
-
|
|
|
|
(90)
|
|
-
|
|
Total (11)
|
$
|
381
|
$
|
18
|
|
|
$
|
3,228
|
$
|
443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance
Sheets (Unaudited)
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
(In millions)
|
|
|
2010
|
|
2009
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
578
|
|
$
|
553
|
|
Trade accounts
receivable
|
|
|
2,901
|
|
|
2,363
|
|
Inventories (12)
|
|
|
6,635
|
|
|
4,862
|
|
Other current assets
(13)
|
|
|
5,701
|
|
|
4,005
|
|
Total current
assets
|
|
|
15,815
|
|
|
11,783
|
|
Property, plant and equipment,
net
|
|
|
5,312
|
|
|
5,347
|
|
Goodwill and other intangible
assets
|
|
|
1,120
|
|
|
597
|
|
Investments in
affiliates
|
|
|
609
|
|
|
622
|
|
Other non-current
assets
|
|
|
3,145
|
|
|
2,937
|
|
Total assets
|
|
$
|
26,001
|
|
$
|
21,286
|
|
Liabilities and Shareholders’
Equity
|
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
1,718
|
|
$
|
166
|
|
Current portion of long-term
debt
|
|
|
612
|
|
|
31
|
|
Trade accounts
payable
|
|
|
3,637
|
|
|
3,275
|
|
Other current
liabilities
|
|
|
4,037
|
|
|
2,735
|
|
Total current
liabilities
|
|
|
10,004
|
|
|
6,207
|
|
Long-term debt
|
|
|
2,551
|
|
|
3,618
|
|
Other non-current
liabilities
|
|
|
892
|
|
|
1,096
|
|
Total equity
|
|
|
12,554
|
|
|
10,365
|
|
Total liabilities and
shareholders’ equity
|
|
$
|
26,001
|
|
$
|
21,286
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated
Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
December
31,
|
|
(In millions)
|
|
2010
|
|
|
|
2009
|
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
|
2,388
|
|
|
$
|
335
|
|
Adjustments to reconcile net
income to cash used for operating activities:
|
|
|
|
|
|
|
|
Foreign exchange loss (gain) on
debt
|
|
75
|
|
|
|
(606)
|
|
Gain on sale of fertilizer
nutrients assets
|
|
(2,440)
|
|
|
|
-
|
|
Depreciation, depletion and
amortization
|
|
443
|
|
|
|
443
|
|
Other, net
|
|
315
|
|
|
|
(124)
|
|
Changes in operating assets and
liabilities, excluding the effects of acquisitions:
|
|
|
|
|
|
|
|
Trade Accounts
Receivable
|
|
(1,560)
|
|
|
|
242
|
|
Inventories
|
|
(1,894)
|
|
|
|
1,636
|
|
Trade Accounts
Payable
|
|
1,305
|
|
|
|
(1,427)
|
|
Other, net
|
|
(1,067)
|
|
|
|
(867)
|
|
Cash used for operating
activities
|
|
(2,435)
|
|
|
|
(368)
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Payments made for capital
expenditures
|
|
(1,072)
|
|
|
|
(918)
|
|
Acquisitions of businesses (net
of cash acquired)
|
|
(252)
|
|
|
|
(136)
|
|
Proceeds from sale of fertilizer
nutrients assets, net of cash disposed
|
|
3,808
|
|
|
|
-
|
|
Proceeds from sale of property,
plant and equipment and investments
|
|
66
|
|
|
|
132
|
|
Other, net
|
|
(41)
|
|
|
|
(30)
|
|
Cash provided by (used for)
investing activities
|
|
2,509
|
|
|
|
(952)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Net borrowings (payments) of
short-term debt
|
|
1,172
|
|
|
|
(366)
|
|
Proceeds from long-term
debt
|
|
2,535
|
|
|
|
2,774
|
|
Repayment of long-term
debt
|
|
(3,227)
|
|
|
|
(2,242)
|
|
Proceeds from sale of common
shares
|
|
6
|
|
|
|
763
|
|
Repurchase of common
shares
|
|
(354)
|
|
|
|
-
|
|
Dividends paid
|
|
(211)
|
|
|
|
(198)
|
|
Other
|
|
49
|
|
|
|
43
|
|
Cash (used for) provided by
financing activities
|
|
(30)
|
|
|
|
774
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
|
(19)
|
|
|
|
95
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
25
|
|
|
|
(451)
|
|
Cash and cash equivalents,
beginning of period
|
|
553
|
|
|
|
1,004
|
|
Cash and cash equivalents, end
of period
|
$
|
578
|
|
|
$
|
553
|
|
|
|
|
|
|
|
|
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
Total segment EBIT is consolidated net income attributable to
Bunge before interest income and expense and income tax.
Total segment EBIT is a non-GAAP financial measure and is not
intended to replace net income attributable to Bunge, the most
directly comparable GAAP financial measure. Total segment
EBIT is an operating performance measure used by Bunge’s management
to evaluate segment operating activities. Bunge management
believes EBIT is a useful measure of operating profitability since
the measure allows for an evaluation of the performance of our
segments without regard to our financing methods or capital
structure. In addition, EBIT is a financial measure that is
widely used by analysts and investors in Bunge’s industries.
Total segment EBIT is not a measure of U.S. GAAP consolidated
operating results and should not be considered as an alternative to
net income or any other measure of consolidated operating results
under U.S. GAAP.
Below is a reconciliation of total segment EBIT to net income
attributable to Bunge:
|
Quarter
Ended
December
31,
|
Year
Ended
December
31,
|
|
(In millions)
|
|
2010
|
|
2009
|
|
|
|
2010
|
|
2009
|
|
Total segment EBIT
|
$
|
381
|
$
|
18
|
|
|
$
|
3,228
|
$
|
443
|
|
Interest income
|
|
7
|
|
26
|
|
|
|
69
|
|
122
|
|
Interest expense
|
|
(57)
|
|
(71)
|
|
|
|
(298)
|
|
(283)
|
|
Income tax (expense)
benefit
|
|
(41)
|
|
58
|
|
|
|
(689)
|
|
110
|
|
Noncontrolling interest share of
interest and tax
|
|
11
|
|
(20)
|
|
|
|
44
|
|
(31)
|
|
Net income attributable to
Bunge
|
$
|
301
|
$
|
11
|
|
|
$
|
2,354
|
$
|
361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share-diluted (excl. certain gains &
charges)
Earnings per common share-diluted (excl. certain gains &
charges) is earnings per share – diluted excluding the gains and
charges shown in the “Additional Financial Information” tables
included in this press release. Earnings per common
share-diluted (excl. certain gains & charges) is a non-GAAP
financial measure and is not intended to replace earnings per
common share – diluted, the most directly comparable GAAP financial
measure. Bunge believes this is a useful measure of
profitability as excluding these gains and charges provides clearer
insight into Bunge’s financial performance. It is not a
measure of consolidated operating results under U.S. GAAP and
should not be considered as an alternative to earnings per
share-diluted or any other measure of consolidated operating
results under U.S. GAAP.
Below is a reconciliation of earnings per common share-diluted
(excl. certain gains & charges) to earnings per common
share-diluted
|
Quarter
Ended
Dec.
31,
|
Year
Ended
Dec.
31,
|
|
|
|
2010
|
|
2009
|
|
|
|
2010
|
|
2009
|
|
Earnings per common
share-diluted (excl. certain gains & charges)
|
$
|
1.99
|
$
|
(0.55)
|
|
|
$
|
4.13
|
$
|
1.70
|
|
Certain gains & charges (see
“Additional Financial Information”)
|
$
|
(0.04)
|
$
|
0.34
|
|
|
$
|
10.93
|
$
|
0.52
|
|
Earnings per common
share-diluted
|
$
|
1.95
|
$
|
(0.21)
|
|
|
$
|
15.06
|
$
|
2.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
(1) In January 2010, Bunge entered into a definitive
agreement (as amended, the Agreement) with Vale S.A., a
Brazil-based global mining company
(Vale), pursuant to which Vale acquired Bunge’s fertilizer
nutrients assets in Brazil,
including its interest in Fertilizantes Fosfatados S.A.
(Fosfertil) on May 27, 2010 for cash
proceeds of $3.9 billion. Bunge
recognized a $2.4 billion gain, net
of transaction costs ($1.9 billion
gain, net of tax) in its fertilizer segment. Of the
$539 million of income tax on the
gain, $280 million was paid during
the year ended December 31, 2010 and
approximately $259 million was offset
by deferred tax assets and other tax credits and therefore did not
result in cash tax payments. Approximately $57 million related to the post-closing working
capital adjustment was received in the third quarter of 2010.
Approximately $144 million of
transaction costs and $280 million of
withholding taxes are included as a component of cash used for
operating activities and gross proceeds of $3.9 billion as a component of cash provided by
investing activities.
(2) In July 2010, Bunge
repaid certain term loans and subsidiary long-term debt with a
portion of the proceeds from the sale of the Brazilian fertilizer
nutrients assets, resulting in a loss on early debt extinguishment
of approximately $90 million.
(3) In the fourth quarter of 2010, Bunge recorded a pretax
impairment charge of $9 million in
cost of goods sold related to a long-term supply contract acquired
in connection with a wheat mill acquisition.
In the third quarter of 2010, Bunge recorded pretax impairment
charges of $49 million, consisting of
$42 million related to a European
oilseed processing and refining facility, $5
million related to closure of an edible oils facility in
Europe and $2 million related to the write-down of
administrative offices in Brazil.
Of the $49 million total,
$22 million was recorded in the
agribusiness segment and $27 million
in the edible oil products segment. Pretax impairment charges
recorded in cost of goods sold in the quarter ended March 31, 2010 primarily consisted of
$9 million in the agribusiness
segment related to closure of an older, less efficient U.S. oilseed
processing facility and $2 million in
the milling products segment related to closure of a co-located
corn oil extraction line.
In the second quarter of 2010, Bunge recorded pretax
restructuring charges in selling, general and administrative
expenses related to consolidation of Brazilian operations
($4 million in the agribusiness
segment, $3 million in the sugar and
bioenergy segment, $2 million in the
edible oil products segment and $3
million in the milling products segment). Pretax
restructuring charges in cost of goods sold in the first quarter
related to termination benefit costs in the U.S. and Brazil ($5
million in the agribusiness segment, $1 million in the sugar and bioenergy segment,
$4 million in the fertilizer segment,
and $1 million in the milling segment).
Pretax impairment charges in selling, general and administrative
expenses in the agribusiness segment for the quarter and year ended
December 31, 2009 included
$10 million related to a biodiesel
equity investment and $16 million
related to real estate.
(4) In the second quarter of 2010, Bunge recorded a pretax
charge of $37 million in cost of
goods sold related to an inventory valuation adjustment due to
changes in its fertilizer segment.
(5) In the first quarter of 2010, Bunge acquired a 100%
ownership interest in five sugar mills in Brazil and recorded pretax acquisition costs
of $11 million in selling, general
and administrative expenses.
(6) In the third quarter of 2010, Bunge sold an idled
wheat milling facility in Brazil
for $8 million in cash resulting in a
pretax gain of $6 million in other
income/expense-net for the third quarter and year ended
December 31, 2010.
(7) In the fourth quarter of 2009, Bunge recorded a gain
of $66 million, net of tax of
$3 million, in equity in earnings of
affiliates on the sale of its 33.34% interest in Saipol, a joint
venture in its edible oil products segment.
(8) In the second quarter of 2009, Bunge reversed a
$32 million provision in selling,
general and administrative expenses, related to transactional taxes
in its fertilizer segment, resulting from new Brazilian
legislation.
(9) Includes interest expense on readily marketable
inventories of $34 million and
$22 million for quarters ended
December 31, 2010 and 2009,
respectively, and $90 million and
$84 million for years ended
December 31, 2010 and 2009,
respectively.
(10) Weighted-average common shares outstanding-diluted
for the fourth quarter and year 2010 exclude the dilutive effect of
2 million and 3 million, respectively, of outstanding stock options
and contingently issuable restricted stock units because the effect
of conversion would not have been dilutive. Weighted-average
common shares outstanding-diluted for the fourth quarter and year
2010 includes the dilutive effect of 12.3 million and 14.1 million
weighted average common shares, respectively, that would be
issuable upon conversion of Bunge’s convertible preference shares.
On December 1, 2010, Bunge’s
mandatory convertible preference shares were converted into
approximately 8.4 million common shares.
Weighted-average common shares outstanding-diluted for the
fourth quarter and year 2009 exclude the dilutive effect of 14.6
million weighted average common shares that would be issuable upon
conversion of Bunge’s convertible preference shares because the
effect of conversion would not have been dilutive.
Weighted-average common shares outstanding-diluted for the
fourth quarter of 2009 also excludes the dilutive effect of 2
million outstanding stock options and contingently issuable
restricted stock units because the effect of conversion would not
have been dilutive.
(11) See Reconciliation of Non-GAAP measures.
(12) Includes readily marketable inventories at fair value
of $4,855 million and $3,380 million at December
31, 2010 and 2009, respectively.
(13) Includes marketable securities of $39 million and $15
million at December 31, 2010
and 2009, respectively.
SOURCE Bunge Limited