WHITE PLAINS, N.Y., July 23 /PRNewswire-FirstCall/ -- Bunge Limited
(NYSE: BG) -- Strong agribusiness results driven by good margins --
High cost inventories continued to pressure fertilizer margins --
Expect solid second half performance; maintaining full-year
earnings guidance -- Financial Highlights (In millions, except per
share data and percentages) Quarter Ended Six Months Ended % %
6/30/09 6/30/08 Change 6/30/09 6/30/08 Change ------- -------
------ ------- ------- ------ Volumes (metric tons) 38,505 36,318
6% 70,756 67,281 5% Net sales $10,994 $14,365 (23)% $20,192 $26,834
(25)% Total segment EBIT (1,2) $419 $1,078 (61)% $216 $1,520 (86)%
Agribusiness $448 $614 (27)% $466 $865 (46)% Fertilizer $(53) $393
(113)% $(315) $526 (160)% Edible Oil Products $10 $15 (33)% $32 $65
(51)% Milling Products $14 $56 (75)% $33 $64 (48)% Net income
attributable to Bunge(2) $313 $751 (58)% $118 $1,040 (89)% Earnings
per common share - diluted (2,3) $2.28 $5.45 (58)% $0.64 $7.56
(92)% (1) Total segment earnings before interest and tax ("EBIT")
is a non-GAAP financial measure. The information required by
Regulation G under the Securities Exchange Act of 1934, including a
reconciliation to net income attributable to Bunge, is included in
the tables attached to this press release. (2) Bunge's results
included certain gains and charges that may be of interest to
investors. See the Additional Financial Information section
included in the tables attached to this press release for more
information. (3) See Note 2 to the consolidated statements of
income attached to this press release for information on the
calculation of diluted earnings per share. -- Overview Alberto
Weisser, Bunge's Chairman and Chief Executive Officer stated,
"Bunge's skilled team leveraged our integrated global asset network
to generate better than expected agribusiness returns. We served
our customers well and managed risks effectively in a volatile
environment. This strong performance offset weak fertilizer
results. "We remain optimistic for a solid second half of the year.
Lower soybean production in South America has limited oilseed
processing utilization in Argentina. While challenging locally,
this should continue to support crush margins on a global level. A
large North American harvest, which according to early indicators
is likely, should provide us with ample volumes for our
agribusiness operations in that region. "To rebuild global stocks,
crop prices will need to stay at levels that encourage good
planting and fertilizer use by South American farmers in the coming
months. We continue to work through some remaining high-cost raw
material inventory in our fertilizer segment, but good demand and
improved international phosphate pricing should benefit our
fertilizer margins. "During the second quarter we continued to
follow our strategy of investing in our core businesses. We
recently announced the creation of a joint venture to build and
operate a state-of-the-art export grain terminal in the U.S. port
of Longview in Washington state. This investment will improve the
balanced, global asset network that is a key driver of value for
our company. We also announced an agreement to acquire Raisio, a
European margarine producer. The transaction encompasses margarine
plants in Finland and Poland as well as several brands. This will
expand our food and ingredients business and enhance our
efficiency." -- Second Quarter Results Agribusiness Second quarter
results in grain origination, oilseed processing and distribution
were significantly improved from levels seen in the preceding three
quarters, although lower than an exceptionally strong period last
year, which included a $117 million credit resulting from a
favorable ruling related to certain transactional taxes in Brazil.
Grain origination and distribution benefitted from strong soybean
demand from China. Oilseed processing results were supported by
solid margins and improved meal demand as customers rebuilt
depleted inventory pipelines. Risk management strategies worked
well during a volatile period. Higher volume in the quarter was due
to increased grain origination and distribution in Europe, as well
as higher sugar merchandising and oilseed processing in Eastern
Europe and Asia, reflecting our investments to expand in these high
growth areas. Foreign exchange gains of $138 million from U.S.
dollar denominated financing of working capital, primarily in our
Brazilian subsidiary, resulting from the impact of a 19%
appreciation of the real against the U.S. dollar during the
quarter, were offset by foreign exchange losses on valuations of
commodity inventories included in gross profit. Fertilizer The
operating loss in the quarter was due to the combination of high
cost inventory and decreasing international fertilizer prices which
negatively impacted margins. Results included $183 million of net
foreign exchange gains resulting from the appreciation of the
Brazilian real on U.S. dollar-denominated financing of working
capital. The offsetting losses to these gains were largely realized
as lower gross profit during the quarter through a combination of
sales and inventory valuation write-downs. Second quarter results
included an inventory valuation write-down of approximately $121
million reflecting further declines in fertilizer prices during the
period. Noncontrolling interest (previously referred to as minority
interest) decreased in the quarter due to lower results at
Fosfertil. The quarter also included the reversal of a $32 million
provision relating to transactional taxes in Brazil as a result of
new legislation. Edible Oil Products Improved results in Europe and
North America were more than offset by lower volume and margins in
Brazil, which suffered from aggressive competition. The second
quarter last year benefitted from a $14 million land sale. Milling
Products Higher volume was more than offset by lower margins. Wheat
milling margins in the same period last year benefitted from lower
priced raw materials purchased earlier in a period of rising
prices. The second quarter last year included an $11 million credit
resulting from a favorable ruling related to certain transactional
taxes in Brazil. Financial Costs Interest expense decreased in the
quarter due to lower average debt levels, primarily resulting from
the drop in prices of agricultural commodity inventories which led
to lower average working capital needs. Income Taxes The effective
tax rate for the six months ended June 30, 2009 was 25% compared to
28% for the same period in 2008. The decrease in the effective tax
rate was primarily due to lower operating earnings in higher tax
jurisdictions. Cash Flow Cash used by operations in the six months
ended June 30, 2009 was $1,754 million compared to cash used by
operations in the same period last year of $483 million. The
negative cash flow in 2009 primarily reflects lower accounts
payable in fertilizer and rising agricultural commodity prices
during the period. -- Outlook Jacqualyn Fouse, Chief Financial
Officer, stated, "We expect a strong second half of the year, with
results weighted more heavily to the fourth quarter when the
Northern Hemisphere harvest is well underway and our fertilizer
economics have stabilized. We are maintaining our 2009 full-year
earnings guidance of $4.90 to $5.40 per share. This guidance
assumes an effective tax rate range of 22%-26%. This fully diluted
per share guidance is based on an estimated weighted average of 138
million shares outstanding, which includes assumed dilution
relating to our convertible preference shares." Conference Call and
Webcast Details Bunge Limited's management will host a conference
call at 10:00 a.m. EDT on July 23 to discuss the company's results.
Additionally, a slide presentation to accompany the discussion of
the second quarter financial results can be found in the "Investor
Information" section of our Web site, www.Bunge.com, under
"Investor Presentations." To listen to the conference call, please
dial (877) 879-6174. If you are located outside of the United
States or Canada, dial (719) 325-4829. Please dial in five to 10
minutes before the scheduled start time. When prompted, enter
confirmation code 4470639. The conference call will also be
available live on the company's Web site at www.Bunge.com. To
access the webcast, click the "Investor Information" link on the
Bunge homepage then select "Webcasts and News Alerts". Click on the
link for the "Q2 2009 Bunge Limited Conference Call," and follow
the prompts to join the call. Please go to the Web site at least 15
minutes prior to the call to register and to download and install
any necessary audio software. For those who cannot listen to the
live broadcast, a replay of the call will be available later in the
day on July 23, 2009, and continuing through August 22, 2009. To
listen to the replay, please dial (888) 203-1112 or, if located
outside of the United States or Canada, dial (719) 457-0820. When
prompted, enter confirmation code 4470639. A rebroadcast of the
conference call will also be available on the company's Web site.
To locate the rebroadcast, click on the "Investor Information" link
on the Bunge homepage then select "Audio Archives". Follow the
prompts to access the replay. About Bunge Limited Bunge Limited
(www.Bunge.com, NYSE: BG) is a leading global agribusiness and food
company founded in 1818 and headquartered in White Plains, New
York. Bunge's 25,000 employees in over 30 countries enhance lives
by improving the global agribusiness and food production chain. The
company supplies fertilizer to farmers; originates, transports and
processes oilseeds, grains and other agricultural commodities;
produces food products for commercial customers and consumers; and
supplies raw materials and services to the biofuels industry.
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;
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 for the quarter and six months ended June 30,
2009 and 2008. Income From Operations Net Income Earnings (In
millions, except per Total Before Attributable Per Share share
data) Segment EBIT Income Tax to Bunge Diluted ----------
---------- ---------- ---------- Quarter Ended June 30: 2009 2008
2009 2008 2009 2008 2009 2008 ---- ---- ---- ---- ---- ---- ----
---- Transactional tax credit (1) $32 $128 $32 $128 $21 $90 $0.15
$0.65 Gain on sale of land (2) - 14 - 14 - 9 - 0.07
---------------------------------------------- Total $32 $142 $32
$142 $21 $99 $0.15 $0.72
============================================== Income From
Operations Net Income Earnings (In millions, except per Total
Before Attributable Per Share share data) Segment EBIT Income Tax
to Bunge Diluted ---------- ---------- ---------- ---------- Six
Months Ended June 30: 2009 2008 2009 2008 2009 2008 2009 2008 ----
---- ---- ---- ---- ---- ---- ---- Transactional tax credit (1) $32
$128 $32 $128 $21 $90 $0.17 $0.65 Gain on sale of land (2) - 14 -
14 - 9 - 0.07 ---------------------------------------------- Total
$32 $142 $32 $142 $21 $99 $0.17 $0.72
==============================================
---------------------------- (1) In the second quarter of 2009,
Bunge reversed a $32 million provision recorded in selling, general
and administrative expenses, related to transactional taxes in its
fertilizer segment, which resulted from new Brazilian legislation.
In the second quarter of 2008, Bunge received a favorable ruling
related to certain transactional taxes in Brazil. As a result,
Bunge recorded in cost of goods sold $117 million and $11 million
of related tax credits in its agribusiness and its milling products
segments, respectively. (2) In the second quarter of 2008, Bunge
recorded a gain on sale of land in its edible oil products segment.
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share
data and percentages) (Unaudited) Quarter Ended Six Months Ended
June 30, June 30, ------------------ Percent -------------------
Percent 2009 2008 Change 2009 2008 Change
------------------------------------------------------ Net sales
$10,994 $14,365 (23)% $20,192 $26,834 (25)% Cost of goods sold
(10,582) (12,914)(18)% (19,645) (24,516)(20)% ------- -------
------- ------- Gross profit 412 1,451 (72)% 547 2,318 (76)%
Selling, general and administrative expenses (309) (460)(33)% (603)
(862)(30)% Interest income 40 54 (26)% 76 102 (25)% Interest
expense (Note 1) (66) (90)(27)% (133) (188)(29)% Foreign exchange
gain 320 258 301 265 Other income (expense) net (1) (9) (8) (12) --
-- -- --- Income from operations before income tax 396 1,204 (67)%
180 1,623 (89)% Income tax expense (79) (337)(77)% (45) (454)(90)%
--- ---- --- ---- Income from operations after income tax 317 867
(63)% 135 1,169 (88)% Equity in earnings of affiliates 5 (7) 171%
11 13 (15)% -- -- -- -- Net income 322 860 (63)% 146 1,182 (88)%
Net income attributable to noncontrolling interest (9) (109)(92)%
(28) (142)(80)% -- ---- --- ---- Net income attributable to Bunge
313 751 (58)% 118 1,040 (89)% Convertible preference share
dividends (20) (20) (39) (39) --- --- --- --- Net income available
to Bunge common shareholders $293 $731 (60)% $79 $1,001 (92)% ====
==== === ====== Earnings per common share-diluted (Note 2):
Earnings to Bunge common shareholders $2.28 $5.45 (58)% $0.64 $7.56
(92)% ===== ===== ===== ===== Weighted-average common shares
outstanding-diluted (Note 2) 137,576,049 137,788,430 122,919,727
137,586,015 =========== =========== =========== ===========
---------------------------- Note 1: Includes interest expense on
readily marketable inventories of $21 million and $33 million for
the quarter ended June 30, 2009 and 2008, respectively, and $28
million and $63 million for the six months ended June 30, 2009 and
2008, respectively. Note 2: Weighted-average common shares
outstanding-diluted for the quarter ended June 30, 2009 includes
the dilutive effect of 14,587,436 weighted average common shares
that would be issuable upon conversion of Bunge's convertible
preference shares because the effect of the conversion would have
been dilutive. There were no weighted average common shares of
outstanding stock-based payment awards that would be issuable upon
conversion of the convertible preference shares, included in the
earnings per common share - diluted calculation for the six months
ended June 30, 2009 because they would not have been dilutive.
Weighted-average common shares outstanding-diluted for the quarter
and six months ended June 30, 2008 includes the dilutive effect of
14,572,628 weighted average common shares that would be issuable
upon conversion of Bunge's convertible preference shares because
the effect of the conversion would have been dilutive. CONSOLIDATED
SEGMENT INFORMATION (In millions, except volumes and percentages)
(Unaudited) Set forth below is a summary of certain items in our
consolidated statements of income and volumes by reportable
segment. Quarter Ended Six Months Ended June 30, June 30,
------------- Percent -------------- Percent 2009 2008 Change 2009
2008 Change -------------------------------------------- Volumes
(in thousands of metric tons): Agribusiness 33,597 30,906 9% 61,230
56,818 8% Fertilizer 2,426 3,000 (19)% 4,487 5,666 (21)% Edible oil
products 1,382 1,438 (4)% 2,776 2,829 (2)% Milling products 1,100
974 13% 2,263 1,968 15% ----- --- ----- ----- Total 38,505 36,318
6% 70,756 67,281 5% ====== ====== ====== ====== Net sales:
Agribusiness $8,304 $9,879 (16)% $14,937 $18,742 (20)% Fertilizer
841 1,785 (53)% 1,540 2,976 (48)% Edible oil products 1,472 2,250
(35)% 2,962 4,179 (29)% Milling products 377 451 (16)% 753 937
(20)% --- --- --- --- Total $10,994 $14,365 (23)% $20,192 $26,834
(25)% ======= ======= ======= ======= Gross profit: Agribusiness
$505 $745 (32)% $718 $1,209 (41)% Fertilizer (212) 521 (141)% (405)
771 (153)% Edible oil products 83 105 (21)% 162 222 (27)% Milling
products 36 80 (55)% 72 116 (38)% -- -- -- --- Total $412 $1,451
(72)% $547 $2,318 (76)% ==== ====== ==== ====== Selling, general
and administrative expenses: Agribusiness $(197) $(247) (20)%
$(354) $(467) (24)% Fertilizer (18) (90) (80)% (75) (165) (55)%
Edible oil products (71) (96) (26)% (133) (176) (24)% Milling
products (23) (27) (15)% (41) (54) (24)% --- --- --- --- Total
$(309) $(460) (33)% $(603) $(862) (30)% ===== ===== ===== =====
Foreign exchange gain (loss): Agribusiness $138 $165 $118 $159
Fertilizer 183 92 186 101 Edible oil products (1) 1 (3) 5 Milling
products - - - - -- -- -- -- Total $320 $258 $301 $265 ==== ====
==== ==== Equity in earnings of affiliates: Agribusiness $1 $(7)
114% $(6) $2 (400)% Fertilizer 1 3 (67)% 1 4 (75)% Edible oil
products 2 (6) 133% 14 5 180% Milling products 1 3 (67)% 2 2 -% --
-- -- -- Total $5 $(7) 171% $11 $13 (15)% == === === ===
Noncontrolling interest: Agribusiness $(3) $(21) (86)% $(10) $(17)
(41)% Fertilizer (5) (132) (96)% (18) (182) (90)% Edible oil
products - (2)(100)% (4) (3) 33% Milling products - - -% - - -% --
-- -- -- Total $(8) $(155) (95)% $(32) $(202) (84)% === ===== ====
===== Other income/(expense): Agribusiness $4 $(21) $- $(21)
Fertilizer (2) (1) (4) (3) Edible oil products (3) 13 (4) 12
Milling products - - - - -- -- -- -- Total $(1) $(9) $(8) $(12) ===
=== === ==== Segment earnings before interest and tax: Agribusiness
$448 $614 (27)% $466 $865 (46)% Fertilizer (53) 393 (113)% (315)
526 (160)% Edible oil products 10 15 (33)% 32 65 (51)% Milling
products 14 56 (75)% 33 64 (48)% -- -- -- -- Total (Note 1) $419
$1,078 (61)% $216 $1,520 (86)% ==== ====== ==== ======
Reconciliation of total segment earnings before interest and tax:
Total segment earnings before interest and tax $419 $1,078 $216
$1,520 Interest income 40 54 76 102 Interest expense (66) (90)
(133) (188) Income tax expense (79) (337) (45) (454) Noncontrolling
interest share of interest and tax (1) 46 4 60 --- -- -- -- Net
income attributable to Bunge $313 $751 $118 $1,040 ==== ==== ====
====== Depreciation, depletion and amortization: Agribusiness $(49)
$(51) (4)% $(91) $(96) (5)% Fertilizer (34) (44) (23)% (66) (86)
(23)% Edible oil products (17) (20) (15)% (34) (36) (6)% Milling
products (5) (4) 25% (9) (9) -% -- -- -- -- Total $(105) $(119)
(12)% $(200) $(227) (12)% ===== ===== ===== =====
---------------------------- Note 1: Total segment earnings before
interest and tax ("EBIT") is a non-GAAP measure and is not intended
to replace net income attributable to Bunge, the most directly
comparable GAAP measure. The information required by Regulation G
under the Securities Exchange Act of 1934, including the
reconciliation to net income attributable to Bunge, is included
under the caption "Reconciliation of Non-GAAP Measures." CONDENSED
CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) June 30,
December 31, June 30, 2009 2008 2008 ---- ---- ---- ASSETS Current
assets: Cash and cash equivalents $489 $1,004 $1,100 Trade accounts
receivable 2,098 2,350 3,501 Inventories (1) 6,690 5,653 8,792
Deferred income taxes 321 268 234 Other current assets (2) 3,728
3,901 5,881 ----- ----- ----- Total current assets 13,326 13,176
19,508 Property, plant and equipment, net 4,584 3,969 4,712
Goodwill 376 325 409 Other intangible assets, net 114 107 162
Investments in affiliates 781 761 801 Deferred income taxes 978 864
939 Other non-current assets 1,649 1,028 1,131 ----- ----- -----
Total assets $21,808 $20,230 $27,662 ======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Short-term debt $1,035 $473 $1,426 Current portion of long-term
debt 294 78 593 Trade accounts payable 3,361 4,158 5,503 Deferred
income taxes 104 104 143 Other current liabilities 3,096 3,261
4,624 ----- ----- ----- Total current liabilities 7,890 8,074
12,289 Long-term debt 3,921 3,032 3,727 Deferred income taxes 145
132 149 Other non-current liabilities 942 864 1,146 Total Bunge
shareholders' equity 8,111 7,436 9,475 Noncontrolling interest 799
692 876 --- --- --- Total equity 8,910 8,128 10,351 ----- -----
------ Total liabilities and shareholders' equity $21,808 $20,230
$27,662 ======= ======= ======= ---------------------------- Note
1: Includes readily marketable inventories of $4,334 million,
$2,741 million and $5,531 million at June 30, 2009, December 31,
2008 and June 30, 2008, respectively. Note 2: Includes marketable
securities of $20 million, $14 million and $40 million at June 30,
2009, December 31, 2008 and June 30, 2008, respectively. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Six
Months Ended June 30, --------------- 2009 2008 ---- ---- OPERATING
ACTIVITIES Net income $146 $1,182 Adjustments to reconcile net
income to cash used for operating activities: Foreign exchange gain
on debt (359) (295) Impairment of assets - 5 Bad debt expense 23 50
Depreciation, depletion and amortization 200 227 Stock-based
compensation expense 16 40 Recoverable taxes provision 37 (9)
Deferred income taxes (104) 22 Equity in earnings of affiliates
(11) (13) Changes in operating assets and liabilities, excluding
the effects of acquisitions: Trade accounts receivable 361 (658)
Inventories (528) (2,362) Prepaid commodity purchase contracts
(211) 38 Secured advances to suppliers 257 169 Trade accounts
payable (1,111) 924 Advances on sales 21 111 Unrealized net (loss)
gain on derivative contracts 213 (208) Margin deposits (279) (82)
Accrued liabilities (69) 55 Other-net (356) 321 ---- --- Cash used
for operating activities (1,754) (483) INVESTING ACTIVITIES
Payments made for capital expenditures (346) (372) Investments in
affiliates - (79) Acquisitions of businesses (net of cash acquired)
(19) (19) Related party loans (19) (48) Proceeds from disposal of
property, plant and equipment 5 28 Proceeds from investments 60 2
Change in restricted cash (28) - --- -- Cash used for investing
activities (347) (488) FINANCING ACTIVITIES Net
proceeds/(repayments) in short-term debt with maturities of 90 days
or less 364 (42) Proceeds from short-term debt with maturities
greater than 90 days 784 1,143 Repayments of short-term debt with
maturities greater than 90 days (625) (294) Proceeds from long-term
debt 2,857 1,353 Repayment of long-term debt (1,754) (1,032)
Proceeds from sale of common shares 1 30 Dividends paid to
preference shareholders (39) (42) Dividends paid to common
shareholders (46) (41) Dividends paid to noncontrolling interest
(4) (63) Other (7) - -- -- Cash provided by financing activities
1,531 1,012 Effect of exchange rate changes on cash and cash
equivalents 55 78 -- -- Net (decrease) increase in cash and cash
equivalents (515) 119 Cash and cash equivalents, beginning of
period 1,004 981 ----- --- Cash and cash equivalents, end of period
$489 $1,100 ==== ====== Reconciliation of Non-GAAP Measures This
earnings release contains total segment earnings before interest
and tax ("EBIT"), which is "non-GAAP financial measures" as this
term is defined in Regulation G of the Securities Exchange Act of
1934. In accordance with Regulation G, Bunge has reconciled this
non-GAAP financial measure to the most directly comparable U.S.
GAAP measures. Total segment earnings before interest and tax Total
segment EBIT is consolidated net income attributable to Bunge
excluding interest income and expense and income tax attributable
to each segment. 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 its segments' operating activities. Bunge believes EBIT
is a useful measure of its segments' operating profitability, since
the measure reflects equity in earnings of affiliates and minority
interest and excludes income tax. Income tax is excluded as
management believes income tax is not material to the operating
performance of its segments. Interest income and expense have
become less meaningful to the segments' operating activities as
Bunge is financing more of its working capital with equity rather
than debt. 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 consolidated operating results under U.S.
GAAP 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 Six Months Ended June 30, June
30, -------------- --------------- (In millions) 2009 2008 2009
2008 ------------- -------------- --------------- Total segment
EBIT $419 $1,078 $216 $1,520 Interest income 40 54 76 102 Interest
expense (66) (90) (133) (188) Income tax benefit (expense) (79)
(337) (45) (454) Noncontrolling interest share of interest and tax
(1) 46 4 60 -- -- -- -- Net income attributable to Bunge $313 $751
$118 $1,040 ==== ==== ==== ====== DATASOURCE: Bunge Limited
CONTACT: Investors, Mark Haden, +1-914-684-3398, , or Media,
Stewart Lindsay, +1-914-684-3369, , both of Bunge Limited Web Site:
http://www.bunge.com/
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