Bermuda
(State or other jurisdiction of incorporation) |
001-16625
(Commission File Number) |
98-0231912
(I.R.S. Employer Identification Number) |
50 Main Street
White Plains, New York (Address of principal executive offices) |
10606
(Zip code) |
Exhibit No. |
Description
|
99.1 |
Press Release, dated May 3, 2017
|
BUNGE LIMITED
|
||||
|
||||
|
||||
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By:
|
/s/ Thomas M. Boehlert
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||
|
|
Name:
|
Thomas M. Boehlert
|
|
|
|
Title:
|
Chief Financial Officer
|
|
Exhibit No. |
Description
|
99.1 |
Press Release, dated May 3, 2017
|
|
Q1 GAAP EPS of $0.31 vs. $1.60 last year, $0.35 vs $1.41 on an adjusted basis
|
|
Agribusiness impacted by delayed farmer selling, shifting results to later in the year
|
|
Expect solid earnings growth in 2017
|
|
Combined Agri-Foods trailing four quarter ROIC of 7.2%; 0.2 points over WACC
|
|
Trailing four quarter operating cash flow of ~$1.8 billion; trailing four quarter adjusted funds from operations of $1.3 billion
|
|
Financial Highlights
|
US$ in millions, except per share
data |
3/31/17
|
3/31/16
|
Net income attributable to Bunge
|
$47
|
$235
|
Net income (loss) per common share from continuing operations-diluted
|
$0.31
|
$1.60
|
Net income (loss) per common share from continuing operations-diluted, adjusted (a)
|
$0.35
|
$1.41
|
Total Segment EBIT (a)
|
$133
|
$322
|
Certain gains & (charges) (b)
|
$(6)
|
$-
|
Total Segment EBIT, adjusted (a)
|
$139
|
$322
|
Agribusiness (c)
|
$109
|
$282
|
Oilseeds
|
$92
|
$138
|
Grains
|
$17
|
$144
|
Food & Ingredients (d)
|
$45
|
$52
|
Sugar & Bioenergy
|
$(11)
|
$(14)
|
Fertilizer
|
$(4)
|
$2
|
(a) |
Total Segment earnings before interest and tax (“Total Segment EBIT”); Total Segment EBIT, adjusted; net income (loss) per common share from continuing operations-diluted, adjusted funds from operations and ROIC are non-GAAP financial measures. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables attached to this press release and the accompanying slide presentation posted on Bunge’s website.
|
(b) |
Certain gains & (charges) included in Total Segment EBIT. See Additional Financial Information for detail.
|
(c) |
See footnote 7 of Additional Financial Information for a description of the Oilseeds and Grains businesses in Bunge’s Agribusiness segment.
|
(d) |
Includes Edible Oil Products and Milling Products segments.
|
|
Overview
|
|
First Quarter Results
|
|
Outlook
|
|
Conference Call and Webcast Details
|
|
About Bunge Limited
|
|
Cautionary Statement Concerning Forward-Looking Statements
|
Investor Contact:
Mark Haden
Bunge Limited
914-684-3398
mark.haden@bunge.com
|
Media Contact:
Susan Burns
Bunge Limited
914-684-3246
susan.burns@bunge.com
|
|
Additional Financial Information
|
Net Income (loss)
|
Earnings
|
|||||||||||||||||||||||
Attributable to
|
Per Share
|
Total Segment
|
||||||||||||||||||||||
(US$ in millions, except per share data)
|
Bunge
|
Diluted
|
EBIT
|
|||||||||||||||||||||
Quarter Ended March 31:
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
||||||||||||||||||
Continuing operations:
|
||||||||||||||||||||||||
Sugar & Bioenergy:
|
||||||||||||||||||||||||
Restructuring charges (1)
|
$
|
(6
|
)
|
$
|
-
|
$
|
(0.04
|
)
|
$
|
-
|
$
|
(6
|
)
|
$
|
-
|
|||||||||
Income taxes:
|
||||||||||||||||||||||||
Income tax benefits (charges) (2)
|
-
|
28
|
-
|
0.19
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
(6
|
)
|
$
|
28
|
$
|
(0.04
|
)
|
$
|
0.19
|
$
|
(6
|
)
|
$
|
-
|
Consolidated Earnings Data (Unaudited)
|
||||||||
Quarter Ended
|
||||||||
March 31,
|
||||||||
(US$ in millions, except per share data)
|
2017
|
2016
|
||||||
Net sales
|
$
|
11,121
|
$
|
8,916
|
||||
Cost of goods sold
|
(10,661
|
)
|
(8,296
|
)
|
||||
Gross profit
|
460
|
620
|
||||||
Selling, general and administrative expenses
|
(378
|
)
|
(314
|
)
|
||||
Foreign exchange gains (losses)
|
56
|
21
|
||||||
Other income (expense)−net
|
(3
|
)
|
(5
|
)
|
||||
EBIT attributable to noncontrolling interest (a)(4)
|
(2
|
)
|
-
|
|||||
Total Segment EBIT (3)
|
133
|
322
|
||||||
Interest income
|
12
|
10
|
||||||
Interest expense
|
(65
|
)
|
(57
|
)
|
||||
Income tax expense (2)
|
(28
|
)
|
(34
|
)
|
||||
Noncontrolling interest share of interest and tax(a)(4)
|
1
|
3
|
||||||
Income (loss) from continuing operations, net of tax
|
53
|
244
|
||||||
Income (loss) from discontinued operations, net of tax
|
(6
|
)
|
(9
|
)
|
||||
Net income (loss) attributable to Bunge (4)
|
47
|
235
|
||||||
Convertible preference share dividends and other obligations
|
(8
|
)
|
(13
|
)
|
||||
Net income (loss) available to Bunge common shareholders
|
$
|
39
|
$
|
222
|
||||
Net income (loss) per common share diluted attributable to Bunge common shareholders (5):
|
||||||||
Continuing operations
|
$
|
0.31
|
$
|
1.60
|
||||
Discontinued operations
|
(0.04
|
)
|
(0.06
|
)
|
||||
Net income (loss) per common share - diluted
|
$
|
0.27
|
$
|
1.54
|
||||
Weighted–average common shares outstanding - diluted
|
141
|
149
|
||||||
(a) The line items "EBIT attributable to noncontrolling interest" and "Noncontrolling interest share of interest and tax" when combined, represent consolidated Net loss (income) 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
|
||||||||
March 31,
|
||||||||
(US$ in millions, except volumes)
|
2017
|
2016
|
||||||
Volumes (in thousands of metric tons):
|
||||||||
Agribusiness
|
35,023
|
32,753
|
||||||
Edible Oil Products
|
1,789
|
1,602
|
||||||
Milling Products
|
1,074
|
1,106
|
||||||
Sugar & Bioenergy
|
1,847
|
1,923
|
||||||
Fertilizer
|
162
|
166
|
||||||
Net sales:
|
||||||||
Agribusiness
|
$
|
7,819
|
$
|
6,283
|
||||
Edible Oil Products
|
1,880
|
1,526
|
||||||
Milling Products
|
382
|
391
|
||||||
Sugar & Bioenergy
|
988
|
658
|
||||||
Fertilizer
|
52
|
58
|
||||||
Total
|
$
|
11,121
|
$
|
8,916
|
||||
Gross profit:
|
||||||||
Agribusiness
|
$
|
278
|
$
|
430
|
||||
Edible Oil Products
|
123
|
112
|
||||||
Milling Products
|
48
|
55
|
||||||
Sugar & Bioenergy
|
9
|
16
|
||||||
Fertilizer
|
2
|
7
|
||||||
Total
|
$
|
460
|
$
|
620
|
||||
Selling, general and administrative expenses:
|
||||||||
Agribusiness
|
$
|
(221
|
)
|
$
|
(177
|
)
|
||
Edible Oil Products
|
(86
|
)
|
(79
|
)
|
||||
Milling Products
|
(37
|
)
|
(29
|
)
|
||||
Sugar & Bioenergy
|
(29
|
)
|
(25
|
)
|
||||
Fertilizer
|
(5
|
)
|
(4
|
)
|
||||
Total
|
$
|
(378
|
)
|
$
|
(314
|
)
|
||
Foreign exchange gain (loss):
|
||||||||
Agribusiness
|
$
|
49
|
$
|
24
|
||||
Edible Oil Products
|
3
|
(1
|
)
|
|||||
Milling Products
|
-
|
(1
|
)
|
|||||
Sugar & Bioenergy
|
5
|
-
|
||||||
Fertilizer
|
(1
|
)
|
(1
|
)
|
||||
Total
|
$
|
56
|
$
|
21
|
||||
Segment EBIT:
|
||||||||
Agribusiness
|
$
|
109
|
$
|
282
|
||||
Edible Oil Products
|
36
|
30
|
||||||
Milling Products
|
9
|
22
|
||||||
Sugar & Bioenergy
|
(17
|
)
|
(14
|
)
|
||||
Fertilizer
|
(4
|
)
|
2
|
|||||
Total Segment EBIT (3)
|
$
|
133
|
$
|
322
|
Condensed Consolidated Balance Sheets (Unaudited)
|
||||||||
March 31,
|
December 31,
|
|||||||
(US$ in millions)
|
2017
|
2016
|
||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
676
|
$
|
934
|
||||
Time deposits under trade structured finance program
|
26
|
64
|
||||||
Trade accounts receivable, net
|
1,671
|
1,676
|
||||||
Inventories (6)
|
5,188
|
4,773
|
||||||
Other current assets
|
4,447
|
3,645
|
||||||
Total current assets
|
12,008
|
11,092
|
||||||
Property, plant and equipment, net
|
5,351
|
5,099
|
||||||
Goodwill and other intangible assets, net
|
862
|
709
|
||||||
Investments in affiliates
|
419
|
373
|
||||||
Time deposits under trade structured finance program
|
464
|
464
|
||||||
Other non-current assets
|
1,516
|
1,451
|
||||||
Total assets
|
$
|
20,620
|
$
|
19,188
|
||||
Liabilities and Equity
|
||||||||
Short-term debt
|
$
|
503
|
$
|
257
|
||||
Current portion of long-term debt
|
938
|
938
|
||||||
Letter of credit obligations under trade structured finance program
|
490
|
528
|
||||||
Trade accounts payable
|
3,898
|
3,485
|
||||||
Other current liabilities
|
2,787
|
2,476
|
||||||
Total current liabilities
|
8,616
|
7,684
|
||||||
Long-term debt
|
3,266
|
3,069
|
||||||
Other non-current liabilities
|
1,105
|
1,092
|
||||||
Total liabilities
|
12,987
|
11,845
|
||||||
Total equity
|
7,633
|
7,343
|
||||||
Total liabilities and equity
|
$
|
20,620
|
$
|
19,188
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
||||||||
Quarter Ended
|
||||||||
March 31,
|
||||||||
(US$ in millions)
|
2017
|
2016
|
||||||
Operating Activities
|
||||||||
Net income (loss) (4)
|
$
|
48
|
$
|
232
|
||||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:
|
||||||||
Foreign exchange loss (gain) on debt
|
14
|
78
|
||||||
Depreciation, depletion and amortization
|
130
|
113
|
||||||
Other, net
|
24
|
68
|
||||||
Changes in operating assets and liabilities, excluding the effects of acquisitions:
|
||||||||
Trade accounts receivable, net
|
27
|
(301
|
)
|
|||||
Inventories
|
(252
|
)
|
(222
|
)
|
||||
Net unrealized gain/loss on derivative contracts
|
(259
|
)
|
(410
|
)
|
||||
Margin deposits
|
(83
|
)
|
100
|
|||||
Trade accounts payable and accrued liabilities
|
421
|
442
|
||||||
Other, net
|
(117
|
)
|
(23
|
)
|
||||
Cash provided by (used for) operating activities
|
(47
|
)
|
77
|
|||||
Investing Activities
|
||||||||
Payments made for capital expenditures
|
(182
|
)
|
(110
|
)
|
||||
Acquisitions of businesses (net of cash acquired)
|
(367
|
)
|
-
|
|||||
Proceeds from investments
|
59
|
158
|
||||||
Payments for investments
|
(65
|
)
|
(251
|
)
|
||||
Payments for investments in affiliates
|
(45
|
)
|
(11
|
)
|
||||
Other, net
|
(7
|
)
|
2
|
|||||
Cash provided by (used for) investing activities
|
(607
|
)
|
(212
|
)
|
||||
Financing Activities
|
||||||||
Net borrowings (repayments) of short-term debt
|
228
|
185
|
||||||
Net proceeds (repayments) of long-term debt
|
174
|
284
|
||||||
Repurchases of common shares
|
-
|
(181
|
)
|
|||||
Proceeds from the exercise of option for common shares
|
46
|
-
|
||||||
Dividends paid
|
(67
|
)
|
(62
|
)
|
||||
Other, net
|
(5
|
)
|
(7
|
)
|
||||
Cash provided by (used for) financing activities
|
376
|
219
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
20
|
28
|
||||||
Net increase (decrease) in cash and cash equivalents
|
(258
|
)
|
112
|
|||||
Cash and cash equivalents, beginning of period
|
934
|
411
|
||||||
Cash and cash equivalents, end of period
|
$
|
676
|
$
|
523
|
|
Definition and Reconciliation of Non-GAAP Measures
|
Quarter Ended
|
||||||||
March 31,
|
||||||||
(US$ in millions)
|
2017
|
2016
|
||||||
Net income (loss) attributable to Bunge
|
$
|
47
|
$
|
235
|
||||
Interest income
|
(12
|
)
|
(10
|
)
|
||||
Interest expense
|
65
|
57
|
||||||
Income tax expense (benefit)
|
28
|
34
|
||||||
(Income) loss from discontinued operations, net of tax
|
6
|
9
|
||||||
Noncontrolling interest share of interest and tax
|
(1
|
)
|
(3
|
)
|
||||
Total Segment EBIT
|
133
|
322
|
||||||
Certain (gains) and charges
|
6
|
-
|
||||||
Total Segment EBIT, adjusted
|
$
|
139
|
$
|
322
|
|
Net Income (loss) per common share from continuing operations-diluted, adjusted
|
Quarter Ended March 31,
|
||||||||
2017
|
2016
|
|||||||
Continuing operations:
|
||||||||
Net income (loss) per common share - diluted adjusted
|
||||||||
(excluding certain gains & charges and
|
||||||||
discontinued operations)
|
$
|
0.35
|
$
|
1.41
|
||||
Certain gains & charges (see Additional
|
||||||||
Financial Information section)
|
(0.04
|
)
|
0.19
|
|||||
Net income (loss) per common share - continuing operations
|
0.31
|
1.60
|
||||||
Discontinued operations
|
(0.04
|
)
|
(0.06
|
)
|
||||
Net income (loss) per common share-diluted
|
$
|
0.27
|
$
|
1.54
|
|
Notes
|
(1) |
2017 EBIT includes a $(6) million pre-tax restructuring charge.
|
(2) |
2016 income tax benefits (charges) include benefits of $60 million, net of reserves, recorded for the change in a tax election in North America, offset by a charge of $(32) million recorded for an uncertain tax position related to Asia.
|
(3) |
See Definition and Reconciliation of Non-GAAP Measures.
|
(4) |
A reconciliation of Net income attributable to Bunge to net income (loss) is as follows:
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2017
|
2016
|
|||||||
Net income (loss) attributable to Bunge
|
$
|
47
|
$
|
235
|
||||
EBIT attributable to noncontrolling interest
|
2
|
-
|
||||||
Noncontrolling interest share of interest and tax
|
(1
|
)
|
(3
|
)
|
||||
Net income (loss)
|
$
|
48
|
$
|
232
|
||||
(5) |
Weighted-average common shares outstanding-diluted for the quarter ended March 31, 2017 excludes the dilutive effect of approximately 2 million of outstanding stock options and contingently issuable restricted stock units as the effect of conversion would not have been dilutive. 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 common shares outstanding for the quarter ended March 31, 2017.
|
(6) |
Includes readily marketable inventories of $4,137 million and $3,855 million at March 31, 2017 and December 31, 2016, respectively. Of these amounts $2,990 million and $2,523 million, respectively, are attributable to merchandising activities.
|
(7) |
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.
|