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Exhibit 99.1

GRAPHIC

 

Bunge Reports Third Quarter 2015 Results

 

White Plains, NY – October 29, 2015 – Bunge Limited (NYSE:BG)

 

·                         Total adjusted segment EBIT of $367 million, up $51 million vs. last year

 

·                         Combined Agri-Foods trailing four quarter ROIC of 10.3%; 3.3 points over WACC

 

·                         YTD total adjusted segment EBIT of $892 million, up $83 million vs. last year

 

·                         Higher tax rate impacting EPS

 

·                         Expect Agribusiness 2015 full-year EBIT to exceed $1B; continued improvement from Q3 in Foods, and combined full-year Agri-Foods ROIC of ~10%

 

       Financial Highlights

 

 

 

 

Quarter Ended

 

Nine Months Ended

 

 

 

 

 

 

 

US$ in millions, except per share data

 

9/30/15

 

9/30/14

 

9/30/15

 

9/30/14

Net sales

 

$10,787

 

$13,676

 

$32,375

 

$43,930

Total segment EBIT (a)

 

$414

 

$316

 

$954

 

$809

Certain gains & (charges) (b)

 

$47

 

-

 

$62

 

-

Total segment EBIT, adjusted (a)

 

$367

 

$316

 

$892

 

$809

Agribusiness (c)

 

$322

 

$186

 

$786

 

$576

Oilseeds

 

$106

 

$68

 

$411

 

$373

Grains

 

$216

 

$118

 

$375

 

$203

Food & Ingredients (d)

 

$45

 

$74

 

$146

 

$218

Sugar & Bioenergy

 

$3

 

$44

 

$(32)

 

$(14)

Fertilizer

 

$(3)

 

$12

 

$(8)

 

$29

Net income (loss) per common share from continuing operations-diluted (a)

 

$1.42

 

$1.73

 

$3.53

 

$3.34

Net income (loss) per common share from continuing operations-diluted, adjusted (a)

 

$1.24

 

$1.31

 

$3.36

 

$3.00

 

(a)    Total segment earnings before interest and tax (“EBIT”); net income (loss) per common share from continuing operations-diluted; and net income (loss) per common share from continuing operations-diluted, adjusted 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)    Includes certain gains and charges included in segment EBIT.  See Additional Financial Information for detail.

(c)    See footnote 11 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

 

Soren Schroder, Bunge’s Chief Executive Officer, stated, “Agribusiness delivered a good third quarter.  The segment capitalized on favorable soy processing margins and increased farmer selling in Brazil, and generated solid risk management income.  Food & Ingredients showed sequential improvement from the second quarter driven by our North American operations, but the tough economic environment in Brazil and rapid devaluation of the real continued to present challenges.

 

“Bunge’s returns are strong, with a four quarter trailing ROIC in our core Agribusiness and Food operations of 10.3%, well above our 7% cost of capital. We continue to make progress in our performance improvement programs, which have generated approximately $75 million of benefits year-to-date, and pursue a balanced approach to capital allocation.

 

“During the third quarter, we bought back $100 million of common shares, bringing the year-to-date total to $300 million, while making progress on improving our winning footprint in our core businesses. We announced bolt-on acquisitions during the quarter that included Brazilian wheat processor, Moinho Pacifico, and U.S. specialty oil producer, Whole Harvest Foods. Pacifico is the largest port based wheat mill in Brazil, which along with our new mill under construction in Rio de Janeiro, will allow us to efficiently serve the growing needs of our customers as the Brazilian economy recovers. Whole Harvest Foods expands our North American specialty oil product offering in the fast growing natural ingredient category.

 

“Looking ahead, we expect over $1 billion in full-year Agribusiness EBIT and sequentially higher results in Food & Ingredients in the fourth quarter. Our food businesses in Brazil will continue to experience challenges for the remainder of the year, but, importantly, our complete integrated oilseed and grain value chains in the country should produce full year results that exceed last year. Sugar & Bioenergy should finish the year both EBIT and free cash flow positive.  Demand for ethanol in Brazil has been strong; recent gasoline price increases have been supportive to ethanol pricing; and the significant devaluation of the Brazilian real has returned Brazil to its traditional role as the world’s low cost producer of sugar.”

 

 

         Third Quarter Results

 

 

Agribusiness

 

In Oilseeds, soybean processing in the U.S., Brazil, Argentina and Europe were the largest contributors to the quarter, benefitting from strong domestic and export demand for soy meal. Softseed processing results in Europe and Canada were down as farmers retained seed. Results in oilseed trading & distribution were lower than last year’s strong performance.

 

In Grains, higher results were primarily driven by our Brazilian grain origination operation which experienced a significant pick-up in volume in the quarter with the devaluation of the real. Grain origination results in other origins were similar to last year and did not make a significant contribution to results due to slow farmer selling. Results in grain trading & distribution which included the recovery of approximately $50 million of losses on open positions at the end of Q2, were good and similar to last year.

 

Our global team managed risk well during the quarter as both grain and oilseed prices declined, reflecting good crops and inventory build-up in most regions. Higher segment volumes were primarily due to our soy processing operations in the U.S., Argentina and Asia.  Third quarter 2014 results were impacted by approximately $80 million in temporary mark-to-market hedging losses in

 

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our oilseed processing and distribution operations, which reversed later in the year when we executed the contracts.

 

Edible Oil Products

 

Results in North America showed improvement due to higher margins in both our refining and packaging operations.  In Brazil, margins and volumes were pressured due to the rapid contraction of consumer demand and the significant devaluation of the real.  While volumes are rebuilding from lower levels, margins will take time to recover.  Results in our European operation were also down in the quarter largely due to the weak economic environment in certain countries, which more than offset the savings from our performance improvement initiatives.

 

Milling Products

 

Improved performance in North America was more than offset by lower results in Brazil.  Our Brazilian wheat milling business was impacted by lower margins in U.S. dollars and volumes due to the rapid contraction of consumer demand, particularly from the food service channel, and the significant devaluation of the real.  In local currency, our team managed to hold margins similar to last year levels; however, the weak economic conditions have made it difficult to push through higher prices to cover higher local costs and currency impacts. In North America, higher margins and volumes in our Mexican wheat milling business more than offset the impacts of currency devaluation and lower margins in our U.S. corn milling business.  Rice milling results were comparable to last year. Third quarter results reflect the recovery of approximately $4 million of mark-to-market losses on foreign exchange, which were incurred in the second quarter.

 

Sugar & Bioenergy

 

Results were lower in both sugarcane milling and trading & merchandising.  In milling, lower prices and sucrose content in the cane (ATR), more than offset higher volume.  While production volume was up this year, it was lower than expected due to excess rain in September, which limited the number of milling days. In trading & merchandising, lower margins more than offset higher volumes compared to a particularly strong prior year period.  Results in our biofuel businesses were comparable to last year.  Results in the quarter were impacted by a $5 million loss from our Brazilian renewable oils joint venture.  We also incurred a mark-to-market loss of $7 million related to forward sugar hedges, which are expected to reverse in Q4, whereas last year results included mark-to-market gains related to hedges on our forward sugar sales of $12 million and gains on foreign currency hedges.

 

Fertilizer

 

The loss in the quarter was due to lower volumes and margins in our Argentine operations resulting from reduced planting of corn and wheat.  Results in our Brazilian port operation were also down due to lower fertilizer imports and currency translation.

 

Cash Flow

 

Cash generated by operations in the nine months ended September 30, 2015 was $633 million compared to cash generated of $1.1 billion in the same period last year. The year-over-year variance primarily reflects higher levels of inventory and farmer advances due to greater year-over-year farmer selling in the Americas, which more than offset higher earnings.

 

3



 

Income Taxes

Excluding approximately $25 million of certain discrete tax items, the effective tax rate for the nine months ended September 30, 2015 was approximately 30%.  The increase from the six months ended June 30, 2015 rate of 26% was due to earnings mix.

 

 

      Outlook

 

Drew Burke, Chief Financial Officer, stated, “In Agribusiness, strong underlying demand for soymeal and oil will continue to support a favorable U.S. and Brazilian soy crushing environment.  European sunseed crush margins have improved in certain countries with the arrival of harvest; however, rapeseed and Canadian canola margins continue to be pressured by weak demand and a reluctant farmer.

 

“With the arrival of new crops, utilizations in our North American grain operations are picking up, although export margins are weak due to farmer retention and increased global competition. Our Brazilian grain handling assets, on the other hand, should benefit from strong export flows of corn due to this year’s large safrinha crop.

 

“In Food & Ingredients, we expect sequential improvement from Q3 as we move into the seasonally strongest quarter. In Europe, margins will improve as new oilseed crops reset raw material costs. In North America, we expect continued good performance.  And while results in Brazil should improve with seasonality, we will likely continue to face challenges expanding margins and increasing volumes in an environment of extremely low consumer confidence.

 

“In Sugar & Bioenergy, strong domestic demand and an improving price outlook for ethanol in Brazil gives us confidence that we will finish the year profitable and free cash flow positive.

 

“We are increasing our full-year effective tax rate forecast from 26% to a range of 28 to 30% excluding discrete tax items. The higher rate reflects a change in our expected mix of earnings to higher tax jurisdictions.

 

“We are decreasing our 2015 capex forecast from $875 million to approximately $750 million due to the timing of spend on certain long-term projects in Agribusiness and Food & Ingredients.  The approximately $125 million difference will carry over into 2016 and 2017.”

 

 

      Conference Call and Webcast Details

 

Bunge Limited’s management will host a conference call at 10:00 a.m. EDT on October 29, 2015 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 (866) 436-9172.  If you are located outside the United States or Canada, dial (630) 691-2760.  Please dial in five to 10 minutes before the scheduled start time.  When prompted, enter confirmation code 40968200.  The call will also be webcast live at www.bunge.com.

 

To access the webcast, go to “Webcasts and Events” in the “Investors” section of the company’s website.  Select “Q3 2015 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 29, 2015, continuing through November 28, 2015.  To listen to it, please dial (888) 843-7419 or, if located outside the United States or Canada,

 

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dial (630) 652-3042.  When prompted, enter confirmation code 40968200.  A replay will also be available at “Past Events” in the “Investors” section of the company’s website..

 

 

      About Bunge Limited

 

Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 35,000 employees.  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, 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 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.

 

Investor Contact:

Media Contact:

Mark Haden, Bunge Limited

Susan Burns, Bunge Limited

914-684-3398

914-684-3246

mark.haden@bunge.com

susan.burns@bunge.com

 

5



 

       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 continuing operations for total segment EBIT, net income (loss) attributable to Bunge and earnings per share for the quarters ended September 30, 2015 and 2014.

 

 

 

 

 

 

 

Net Income (loss)

 

Earnings

 

 

 

Total Segment

 

Attributable to

 

Per Share

 

(In millions, except per share data)

 

EBIT

 

Bunge

 

Diluted

 

Quarter Ended September 30:

 

2015

 

2014

 

2015

 

2014

 

2015

 

2014

 

Continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Agribusiness:

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of Canadian grain assets (1)

 

$

47

 

$

-

 

$

43

 

$

-

 

$

0.28

 

$

-

 

Income tax benefits (charges) (3)

 

-

 

-

 

-

 

77

 

-

 

0.50

 

Income tax valuation allowances (4)

 

-

 

-

 

(15

)

(11

)

(0.10

)

(0.08

)

Total

 

$

47

 

$

-

 

$

28

 

$

66

 

$

0.18

 

$

0.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (loss)

 

Earnings

 

 

 

Total Segment

 

Attributable to

 

Per Share

 

(In millions, except per share data)

 

EBIT

 

Bunge

 

Diluted

 

Nine Months Ended September 30:

 

2015

 

2014

 

2015

 

2014

 

2015

 

2014

 

Continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Agribusiness:

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of Canadian grain assets (1)

 

$

47

 

$

-

 

$

43

 

$

-

 

$

0.28

 

$

-

 

Reversal of export tax contingency (2)

 

30

 

-

 

19

 

-

 

0.12

 

-

 

Income tax benefits (charges) (3)

 

-

 

-

 

(4

)

64

 

(0.03

)

0.42

 

Income tax valuation allowances (4)

 

-

 

-

 

(15

)

(11

)

(0.10

)

(0.08

)

Edible Oil Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of packaged oil facility (5)

 

(15

)

-

 

(10

)

-

 

(0.06

)

-

 

Sugar and Bioenergy:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefits (charges) (6)

 

-

 

-

 

(6

)

-

 

(0.04

)

-

 

Total

 

$

62

 

$

-

 

$

27

 

$

53

 

$

0.17

 

$

0.34

 

 

6



 

Consolidated Earnings Data (Unaudited)

 

 

 

Quarter Ended

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

September 30,

 

(In millions)

 

2015

 

2014

 

 

 

2015

 

2014

 

Net sales

 

$

10,787

 

$

13,676

 

 

$

32,375

 

$

43,930

 

Cost of goods sold

 

(10,042

)

(12,957

)

 

(30,385

)

(42,004

)

Gross profit

 

745

 

719

 

 

1,990

 

1,926

 

Selling, general and administrative expenses

 

(358

)

(403

)

 

(1,050

)

(1,161

)

Foreign exchange gains (losses)

 

(24

)

23

 

 

(15

)

59

 

Other income (expense)–net

 

2

 

(2

)

 

(6

)

5

 

Gain on sale of Canadian grain assets (1)

 

47

 

-

 

 

47

 

-

 

EBIT attributable to noncontrolling interest

 

2

 

(21

)

 

(12

)

(20

)

Total Segment EBIT (7)

 

414

 

316

 

 

954

 

809

 

Interest income

 

18

 

19

 

 

42

 

71

 

Interest expense

 

(77

)

(70

)

 

(187

)

(225

)

Income tax (expense) benefit (3)(4)(6)

 

(140

)

(9

)

 

(270

)

(150

)

Noncontrolling interest share of interest and tax

 

3

 

11

 

 

13

 

27

 

Income from continuing operations, net of tax

 

218

 

267

 

 

552

 

532

 

Income (loss) from discontinued operations, net of tax

 

21

 

27

 

 

36

 

37

 

Net income attributable to Bunge (8)

 

239

 

294

 

 

588

 

569

 

Convertible preference share dividends and other obligations

 

(10

)

(10

)

 

(38

)

(40

)

Net income available to Bunge common shareholders

 

$

229

 

$

284

 

 

$

550

 

$

529

 

Net income (loss) per common share diluted attributable to Bunge common shareholders (9):

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.42

 

$

1.73

 

 

$

3.53

 

$

3.34

 

Discontinued operations

 

0.14

 

0.17

 

 

0.24

 

0.24

 

Net income (loss) per common share - diluted

 

$

1.56

 

$

1.90

 

 

$

3.77

 

$

3.58

 

Weighted–average common shares outstanding - diluted

 

152

154

 

153

155

 

7



 

Consolidated Segment Information (Unaudited)

Set forth below is a summary of certain items in our Consolidated Earnings Data and volumes by reportable segment.

 

 

 

 

Quarter Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

 

 

 

 

(In millions, except volumes)

 

2015

 

2014

 

2015

 

2014

 

Volumes (in thousands of metric tons):

 

 

 

 

 

 

 

 

 

Agribusiness

 

36,154

 

34,937

 

100,200

 

101,615

 

Edible Oil Products

 

1,733

 

1,721

 

5,005

 

5,050

 

Milling Products

 

1,064

 

1,102

 

3,136

 

3,450

 

Sugar & Bioenergy

 

2,428

 

2,229

 

7,424

 

6,303

 

Fertilizer

 

287

 

349

 

620

 

707

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

Agribusiness

 

$

7,718

 

$

9,835

 

$

23,373

 

$

32,783

 

Edible Oil Products

 

1,659

 

2,016

 

4,974

 

6,043

 

Milling Products

 

400

 

516

 

1,255

 

1,604

 

Sugar & Bioenergy

 

891

 

1,154

 

2,519

 

3,184

 

Fertilizer

 

119

 

155

 

254

 

316

 

Total

 

$

10,787

 

$

13,676

 

$

32,375

 

$

43,930

 

Gross profit:

 

 

 

 

 

 

 

 

 

Agribusiness

 

$

527

 

$

423

 

$

1,393

 

$

1,198

 

Edible Oil Products

 

98

 

135

 

297

 

399

 

Milling Products

 

66

 

78

 

193

 

235

 

Sugar & Bioenergy

 

53

 

64

 

99

 

54

 

Fertilizer

 

1

 

19

 

8

 

40

 

Total

 

$

745

 

$

719

 

$

1,990

 

$

1,926

 

Selling, general and administrative expenses:

 

 

 

 

 

 

 

 

 

Agribusiness

 

$

(215)

 

$

(231)

 

$

(600)

 

$

(637)

 

Edible Oil Products

 

(82)

 

(91)

 

(252)

 

(286)

 

Milling Products

 

(29)

 

(39)

 

(94)

 

(118)

 

Sugar & Bioenergy

 

(26)

 

(37)

 

(86)

 

(113)

 

Fertilizer

 

(6)

 

(5)

 

(18)

 

(7)

 

Total

 

$

(358)

 

$

(403)

 

$

(1,050)

 

$

(1,161)

 

Foreign exchange gain (loss):

 

 

 

 

 

 

 

 

 

Agribusiness

 

$

5

 

$

13

 

$

29

 

$

32

 

Edible Oil Products

 

(4)

 

(3)

 

-

 

(3)

 

Milling Products

 

(4)

 

(2)

 

(8)

 

(2)

 

Sugar & Bioenergy

 

(23)

 

13

 

(38)

 

31

 

Fertilizer

 

2

 

2

 

2

 

1

 

Total

 

$

(24)

 

$

23

 

$

(15)

 

$

59

 

Segment earnings before interest and tax:

 

 

 

 

 

 

 

 

 

Agribusiness

 

$

369

 

$

186

 

$

863

 

$

576

 

Edible Oil Products

 

13

 

37

 

43

 

105

 

Milling Products

 

32

 

37

 

88

 

113

 

Sugar & Bioenergy

 

3

 

44

 

(32)

 

(14)

 

Fertilizer

 

(3)

 

12

 

(8)

 

29

 

Total (7)

 

$

414

 

$

316

 

$

954

 

$

809

 

 

8



 

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

September 30,

 

 

 

December  31,

 

(In millions)

 

2015

 

 

 

2014

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

$

303

 

 

$

362

 

Time deposits under trade structured finance program

 

296

 

 

 

1,343

 

Trade accounts receivable, net

 

1,908

 

 

 

1,840

 

Inventories (10)

 

5,013

 

 

 

5,554

 

Other current assets

 

3,986

 

 

 

3,982

 

Total current assets

 

11,506

 

 

 

13,081

 

Property, plant and equipment, net

 

4,616

 

 

 

5,626

 

Goodwill and other intangible assets, net

 

524

 

 

 

605

 

Investments in affiliates

 

411

 

 

 

294

 

Other non-current assets

 

1,382

 

 

 

1,826

 

Total assets

$

18,439

 

 

$

21,432

 

Liabilities and Equity

 

 

 

 

 

 

 

Short-term debt

$

832

 

 

$

594

 

Current portion of long-term debt

 

519

 

 

 

408

 

Letter of credit obligations under trade structured finance program

 

296

 

 

 

1,343

 

Trade accounts payable

 

3,465

 

 

 

3,248

 

Other current liabilities

 

3,058

 

 

 

3,111

 

Total current liabilities

 

8,170

 

 

 

8,704

 

Long-term debt

 

2,583

 

 

 

2,855

 

Other non-current liabilities

 

987

 

 

 

1,146

 

Total liabilities

 

11,740

 

 

 

12,705

 

Redeemable noncontrolling interest

 

38

 

 

 

37

 

Total equity

 

6,661

 

 

 

8,690

 

Total liabilities and equity

$

18,439

 

 

$

21,432

 

 

9



 

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

 

 

 

Nine Months Ended

 

 

 

September  30,

 

 

(In millions)

 

2015

 

 

2014

 

Operating Activities

 

 

 

 

 

 

Net income (8)

 

$

587

 

 

$

562

 

Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:

 

 

 

 

 

 

Gain on sale of Canadian grain assets (1)

 

(47

)

 

-

 

Impairment charges

 

24

 

 

4

 

Foreign exchange loss (gain) on debt

 

(227

)

 

(61

)

Depreciation, depletion and amortization

 

403

 

 

448

 

Other, net

 

5

 

 

(45

)

Changes in operating assets and liabilities, excluding the effects of acquisitions:

 

 

 

 

 

 

Trade accounts receivable, net

 

(330

)

 

(424

)

Inventories

 

(114

)

 

590

 

Prepayments and advances to suppliers

 

(382

)

 

(4

)

Advances on sales

 

(104

)

 

(109

)

Net unrealized gain/loss on derivative contracts

 

7

 

 

(296

)

Margin deposits

 

(32

)

 

86

 

Trade accounts payable and accrued liabilities

 

722

 

 

439

 

Other, net

 

121

 

 

(74

)

Cash provided by (used for) operating activities

 

633

 

 

1,116

 

Investing Activities

 

 

 

 

 

 

Payments made for capital expenditures

 

(365

)

 

(515

)

Acquisitions of businesses (net of cash acquired)

 

(54

)

 

(14

)

Proceeds from the sale of Canadian grain assets

 

90

 

 

-

 

Proceeds from sales of investments

 

269

 

 

261

 

Payments for investments

 

(203

)

 

(140

)

Payments for investments in affiliates

 

(158

)

 

(40

)

Other, net

 

4

 

 

(5

)

Cash provided by (used for) investing activities

 

(417

)

 

(453

)

Financing Activities

 

 

 

 

 

 

Net borrowings (repayments) of short-term debt

 

290

 

 

114

 

Net proceeds (repayments) of long-term debt

 

(11

)

 

(699

)

Proceeds from sales of common shares

 

24

 

 

34

 

Repurchases of common shares

 

(300

)

 

(300

)

Dividends paid

 

(178

)

 

(162

)

Other, net

 

(10

)

 

(18

)

Cash provided by (used for) financing activities

 

(185

)

 

(1,031

)

Effect of exchange rate changes on cash and cash equivalents

 

(90

)

 

(17

)

Net increase (decrease) in cash and cash equivalents

 

(59

)

 

(385

)

Cash and cash equivalents, beginning of period

 

362

 

 

742

 

Cash and cash equivalents, end of period

 

$

303

 

 

$

357

 

 

10



 

 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 a non-GAAP financial measure and is not intended to replace net income (loss) 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’s management believes total segment EBIT is a useful measure of its segments’ operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its 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 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 total segment EBIT to net income attributable to Bunge:

 

 

 

 

Quarter Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In millions)

 

2015

 

2014

 

 

2015

 

2014

 

Total segment EBIT

 

$

414

 

$

316

 

 

$

954

 

$

809

 

Interest income

 

18

 

19

 

 

42

 

71

 

Interest expense

 

(77)

 

(70)

 

 

(187)

 

(225)

 

Income tax expense

 

(140)

 

(9)

 

 

(270)

 

(150)

 

Income from discontinued operations, net of tax

 

21

 

27

 

 

36

 

37

 

Noncontrolling interest share of interest and tax

 

3

 

11

 

 

13

 

27

 

Net income attributable to Bunge

 

 

$

239

 

$

294

 

 

$

588

 

$

569

 

 

11



 

Earnings per common share-diluted (excluding certain gains & charges and discontinued operations)

 

Below is a reconciliation of earnings per common share-diluted (excluding certain gains and charges and discontinued operations) to earnings per common share-diluted. Earnings per common share-diluted (excluding certain gains and charges and discontinued operations) is a non-GAAP financial measure and 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.

 

 

 

Quarter Ended

 

Nine Months Ended

 

 

 

September  30,

 

September  30,

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2015

 

2014

 

Continuing operations:

 

 

 

 

 

 

 

 

 

Net income (loss) per common share - diluted (excluding certain gains & charges and discontinued operations)

 

 $

1.24

 

 $

1.31

 

  $

3.36

 

 $

3.00

 

Certain gains & charges (see Additional Financial Information section)

 

0.18

 

0.42

 

0.17

 

0.34

 

Net income (loss) per common share from continuing operations

 

1.42

 

1.73

 

3.53

 

3.34

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

0.14

 

0.17

 

0.24

 

0.24

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-diluted

 

 $

1.56

 

 $

1.90

 

  $

3.77

 

 $

3.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12



 

    Notes

 

Agribusiness:

 

(1)    2015 EBIT includes a $47 million pre-tax gain on the sale of our Canadian grain assets to G3 Canada Limited (formerly the Canadian Wheat Board).

 

(2)    2015 EBIT includes a $30 million pre-tax reversal of an export tax contingency in Argentina, recorded during the second quarter.

 

(3)    2015 income tax benefits (charges) includes a charge of $4 million related to the finalization of a tax audit in Asia recorded during the second quarter.

 

2014 income tax benefits (charges) includes benefits of $52 million resulting from management’s evaluation of the recoverability of net operating loss carryforwards of a subsidiary taxable in Brazil, $13 million related to an adjustment of provisions upon finalization of a tax audit in Europe and $12 million of a reversal of previously accrued penalties and interest on certain uncertain tax positions settled via a tax amnesty program in Brazil, recorded in the third quarter.

 

2014 income tax benefits (charges) includes charges of $4 million related to the finalization of a tax audit in Europe, recorded in the second quarter, $2 million related to adjustments upon tax return filings in Asia, recorded in the second quarter and $5 million and $2 million related to uncertain income tax positions in North America, recorded in the first and second quarters, respectively.

 

(4)    2015 income tax valuation allowances includes allowances of $15 million resulting from management’s evaluation of the recoverability of its net operating loss carryforwards in Asia, recorded in the third quarter.

 

2014 income tax valuation allowances includes allowances of $11 million resulting from management’s evaluation of the recoverability of its net operating loss carryforwards in Asia, recorded in the third quarter.

 

Edible Oil Products:

 

(5)    2015 EBIT includes a $15 million pre-tax impairment charge related to the announced closure of a packaged oil plant in the United States, recorded during the second quarter.

 

Sugar and Bioenergy:

 

(6)             2015 income tax benefits (charges) includes a charge of $6 million related to uncertain income tax positions in North America and South America recorded during the second quarter.

 

Notes to the Financial Tables:

 

(7)    See Reconciliation of Non-GAAP Measures.

 

(8)    A reconciliation of net income attributable to Bunge is as follows:

 

 

 

Nine Months Ended
September 30,

 

 

 

2015

 

2014

 

Net income attributable to Bunge

 

$

588

 

$

569

 

EBIT attributable to noncontrolling interest

 

12

 

20

 

Noncontrolling interest share of interest and tax

 

(13)

 

(27)

 

Net income

 

$

587

 

$

562

 

 

(9)    Approximately 3 million and 2 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, 2015, respectively.

 

Approximately 2 million and 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, 2014, respectively.

 

13



 

(10)  Includes readily marketable inventories of $4,138 million and $4,409 million at September 30, 2015 and December 31, 2014, respectively. Of these amounts $2,989 million and $2,937 million, respectively, are attributable to agribusiness merchandising activities.

 

(11)  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.

 

14