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Bunge Reports Third Quarter Results

                     Bunge Reports Third Quarter Results

PR Newswire

WHITE PLAINS, N.Y., Oct. 25, 2012

WHITE PLAINS, N.Y., Oct. 25, 2012 /PRNewswire/ -- Bunge Limited (NYSE: BG)

  oTotal segment EBIT of $441 million, an increase of $250 million compared
    to Q3 2011
  oStrong Agribusiness results, volumes up 15%
  oSugar & Bioenergy results impacted by $39 million impairment charge
    related to a U.S. corn ethanol joint-venture
  oExcluding charge, results in Sugar & Bioenergy improved year-over-year due
    to higher milling margins

Financial Highlights

                            Quarter               Nine Months Ended
                           Ended
US$ in millions, except
per share                  9/30/12          9/30/11         9/30/12  9/30/11
data
Volume (000 metric tons)   43,209           38,035          119,560  102,846
Net sales                  $17,293          $15,616         $45,829  $42,298
Total segment EBIT ^(a)    $441             $191            $982     $881
Agribusiness               $406             $149            $989     $706
Sugar & Bioenergy          $(47)            $(43)           $(108)   $(23)
Edible Oil Products        $29              $28             $52      $92
Milling Products           $30              $24             $101     $79
Fertilizer                 $23              $33             $(52)    $27
Net income attributable to $297             $140            $663     $688
Bunge
Earnings per common        $1.92            $0.89           $4.29    $4.42
share-diluted
Earnings per common
share-diluted ^(a)         $2.08            $0.86           $3.99    $4.15
(excl. certain gains &
charges) ^

(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
delivered significantly stronger third-quarter results than in the prior
year. Agribusiness operations posted solid results, and Food & Ingredients
and Fertilizer showed improved performance from the challenging first half of
the year. Results in Sugar & Bioenergy on a comparable basis were higher than
last year, but below the potential of this business. Our continued sugarcane
planting and other cost reduction efforts which will result in increased sales
volumes and lower unit costs will help us realize this potential. We are
making steady progress, and remain optimistic for a strong performance in the
2013 crop year. 

"The current market environment, shaped most notably by the severe U.S.
drought, has been and will continue to be volatile and complex for everyone
who participates in our industry. Stocks of corn and soybeans are tight, and
the world is adjusting typical trade flows. Bunge's role is to help farmers
and customers manage through this environment, by providing market access for
crops and delivering the right products when and where they are needed. We
are confident that the company's core strengths – geographic balance, a
diverse product portfolio, an experienced team and a strong balance sheet –
enable us to fulfill this role effectively and profitably.

"The world needs record crops to rebuild stocks, and today's high prices are
sending a strong signal to farmers, especially in South America, to plant.
Early indications are that soybean production will be at record levels. As
new crops are harvested, we should see a more balanced supply-demand
situation, which will be good for consumers and for the market overall."

Third Quarter Results

Agribusiness
Operations in all geographies performed well in the quarter. Higher oilseed
processing results were driven by North America, Europe and Asia, which
experienced a challenging year-ago period. Oilseed processing in South America
also performed well. Our grain merchandising operations benefited from the
combination of strong export demand and large South American grain supplies.
Higher volumes in the quarter reflect contributions from our investments in
additional grain and port facilities in the U.S. and strong export demand.

Sugar & Bioenergy
Sugarcane milling performance improved from last year, generating a slight
profit in the quarter primarily due to higher sugar margins. However, results
were lower than we would normally expect for the seasonally strong third
quarter primarily due to lower sales volume caused by port congestion, and
lower sugar content of harvested cane, which led to reduced production volumes
and increased unit costs. While improved from last year, our trading &
merchandising business reported a loss. Results in the quarter included an
impairment charge of $39 million related to a North American corn ethanol
joint venture.

Edible Oil Products
Higher results in our European and Brazilian businesses more than offset lower
results in our North American operations. Results in the quarter benefited
from our new acquisitions. Results in 2011 included a $6 million gain on the
sale of an idled facility in North America.

Milling Products
Higher earnings in the quarter were primarily driven by improved margins in
wheat milling. Our wheat mill in Mexico, in which we acquired a majority
interest in the second quarter of 2012, also contributed to results.

Fertilizer
Results in Fertilizer showed considerable improvement compared to its
performance during the first half of the year, but trailed last year due to
lower margins in our Brazilian business. 

Financial Costs
Interest expense increased in the quarter primarily due to higher average
borrowings, mostly resulting from the higher prices of agricultural commodity
inventories which drove higher average working capital levels.

Income Taxes
The effective tax rate for the nine months ended September 30, 2012 was 20%
compared to 8% for the same period last year. The higher effective tax rate
primarily reflects earnings mix. 

Outlook
Drew Burke, Chief Financial Officer, stated, "With soybean supplies in South
America at low levels, oilseed processing will largely be driven by North
America and Europe, which should benefit from strong export demand.
Considering the tight supply environment, global grain demand will continue to
be met by a variety of products from different geographies. With our global
network of ports and elevators, our grain merchandising operations should
continue to perform well.

"In Sugar & Bioenergy, we expect our milling business to continue to improve
through the remainder of the year. We remain on track to reach our planting
target of approximately 70 thousand hectares of sugarcane this year. This,
combined with the steps we are taking to improve the efficiency of our
operations, should enable us to operate our mills at full capacity in the 2013
crop year with lower unit production costs.

"Food & Ingredients should continue to improve from the challenging first half
of the year. 

"In Fertilizer, it is the seasonally stronger period in South America, but
markets remain competitive."

Conference Call and Webcast Details

Bunge Limited's management will host a conference call at 10:00 a.m. EDT on
October 25, 2012 to discuss the company's results.

Additionally, a slide presentation to accompany the discussion of results will
be posted on www.bunge.com.

To listen to the call, please dial (877) 261-8992. If you are located outside
the United States or Canada, dial (847) 619-6548. Please dial in five to 10
minutes before the scheduled start time. When prompted, enter confirmation
code 33524650. The call will also be webcast live at www.bunge.com.

To access the webcast, go to the "Webcasts and Events" page of the "Investors"
section of the company's website. Select "Q3 2012 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.

For those who cannot listen to the live broadcast, a replay will be available
later in the day on October 25, 2012, continuing through November 24, 2012.
To listen to it, please dial (888) 843-7419 or, if located outside the United
States or Canada, dial (630) 652-3042. When prompted, enter confirmation code
33524650. A replay will also be available on the "Audio Archives" page of 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 approximately 40 countries with over 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 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, net income attributable to Bunge and
earnings per share for the quarter and nine months ended September 30, 2012
and 2011.

                                               Net Income      Earnings
                                 Total Segment Attributable to Per Share
(In millions, except per share   EBIT          Bunge           Diluted
data) ^
Quarter Ended September 30:        2012   2011    2012    2011   2012     2011
Gain on sale of property, plant  $ -    $ 6    $  -     $ 5    $ -      $ 0.03
and equipment ^(4)
Impairment of equity method
investment ^
         and related party loan    (39)   -       (25)    -      (0.16)   -
         ^(5)
Total ^                          $ (39) $ 6    $  (25)  $ 5    $ (0.16) $ 0.03
                                               Net Income      Earnings
                                 Total Segment Attributable to Per Share
(In millions, except per share   EBIT          Bunge           Diluted
data) ^
Nine Months Ended September 30:    2012   2011    2012    2011   2012     2011
^
Other income (expense) - net     $ (27) $ -    $  (18)  $ -    $ (0.12) $ -
^(1)
Gain on sale of investments ^(2)   85     37      54      37     0.35     0.24
Gain on acquisition of             36     -       36      -      0.23     -
controlling interest ^(3)
Gain on sale of property, plant    -      6       -       5      -        0.03
and equipment ^(4)
Impairment of equity method
investment ^
         and related party loan    (39)   -       (25)    -      (0.16)   -
         ^(5)
Total ^                          $ 55   $ 43   $  47    $ 42   $ 0.30   $ 0.27



Consolidated Earnings Data (Unaudited)
                                 Quarter Ended           Nine Months Ended
                                 September 30,           September 30,
(In millions) ^                   2012       2011         2012       2011
Net sales ^                     $ 17,293   $ 15,616     $ 45,829   $ 42,298
Cost of goods sold ^             (16,434)   (14,910)     (43,789)   (40,306)
Gross profit ^                    859        706          2,040      1,992
Selling, general and               (416)      (394)        (1,231)    (1,121)
administrative expenses ^ 
Foreign exchange gain (loss) ^    20         (127)        104        (8)
Other income (expense)−net ^     (9)        (1)          (46)       (8)
Gain on sale of investments ^     -          -            85         37
Gain on acquisition of             -          -            36         -
controlling interest ^ 
EBIT attributable to               (13)       7            (6)        (11)
noncontrolling interest ^ 
Total Segment EBIT ^(8)            441        191          982        881
Interest income ^                 13         28           60         72
Interest expense ^(6)              (86)       (80)         (230)      (222)
Income tax (expense) benefit ^    (80)       1            (162)      (62)
Noncontrolling interest share of   9          -            13         19
interest and tax ^ 
Net income attributable to Bunge   297        140          663        688
^ 
Convertible preference share       (8)        (8)          (25)       (25)
dividends ^ 
Net income available to Bunge    $ 289      $ 132        $ 638      $ 663
common shareholders ^ 
Diluted earnings per common      $ 1.92     $ 0.89       $ 4.29     $ 4.42
share ^ 
Weighted–average common shares     155        148          155        156
outstanding - diluted ^(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        2012       2011^(9)        2012       2011^(9)
volumes) ^
Volumes (in thousands of
metric tons): ^
Agribusiness ^              35,770     31,142 ^       101,143    84,643 ^
Sugar & Bioenergy ^         2,855      2,372 ^        5,990      6,072 ^
Edible oil products ^       1,692      1,535 ^        4,876      4,398 ^
Milling products ^          1,097      1,113 ^        3,230      3,494 ^
Fertilizer ^                1,795      1,873 ^        4,321      4,239 ^
Total ^                     43,209     38,035 ^       119,560    102,846 ^
Net sales: ^
Agribusiness ^          $  11,993  $  9,995 ^     $  31,890     27,721 ^
Sugar & Bioenergy ^         1,522      1,731 ^        3,482      4,212 ^
Edible oil products ^       2,395      2,337 ^        6,947      6,553 ^
Milling products ^          485        525 ^          1,333      1,516 ^
Fertilizer ^                898        1,028 ^        2,177      2,296 ^
Total ^                  $  17,293  $  15,616 ^    $  45,829     42,298 ^
Gross profit: ^
Agribusiness ^           $  594     $  448 ^       $  1,424      1,249 ^
Sugar & Bioenergy ^         50         19 ^           73         98 ^
Edible oil products ^       113        107 ^          317        335 ^
Milling products ^          60         56 ^           159        167 ^
Fertilizer ^                42         76 ^           67         143 ^
Total ^                  $  859     $  706 ^       $  2,040      1,992 ^
Selling, general and
administrative expenses:
^
Agribusiness ^           $  (206)   $  (199) ^      $  (626)      (565) ^
Sugar & Bioenergy ^(5)      (69)       (39) ^          (150)      (121) ^
Edible oil products ^       (83)       (84) ^          (264)      (241) ^
Milling products ^          (30)       (33) ^          (95)       (90) ^
Fertilizer ^               (28)       (39) ^          (96)       (104) ^
Total ^                  $  (416)   $  (394) ^      $  (1,231)    (1,121) ^
Foreign exchange gain
(loss): ^
Agribusiness ^           $  32      $  (113) ^      $  106      $ (10) ^
Sugar & Bioenergy ^         (15)       (20) ^          (15)       3 ^
Edible oil products ^       (2)        1 ^            (5)        - ^
Milling products ^          1          - ^            1          - ^
Fertilizer ^                4          5 ^            17         (1) ^
Total ^                  $  20      $  (127) ^      $  104      $ (8) ^
Segment earnings before
interest and tax: ^
Agribusiness ^(2)        $  406     $  149 ^       $  989      $ 706 ^
Sugar & Bioenergy ^         (47)       (43) ^          (108)      (23) ^
Edible oil products ^       29         28 ^           52         92 ^
Milling products ^(3)       30         24 ^           101        79 ^
Fertilizer ^                23         33 ^           (52)       27 ^
Total ^(8)               $  441     $  191 ^       $  982      $ 881 ^



Condensed Consolidated Balance Sheets (Unaudited)
                                             September 30,   December 31,
(In millions) ^                              2012            2011
Assets ^
Cash and cash equivalents ^                 $    690        $    835
Trade accounts receivable, net ^                  3,689           2,459
Inventories ^(10)                                 8,115           5,733
Other current assets ^                           5,552           4,101
Total current assets ^                            18,046          13,128
Property, plant and equipment, net ^             5,841           5,517
Goodwill and other intangible assets, net ^       1,181           1,113
Investments in affiliates ^                       282             600
Other non-current assets ^                        3,285           2,917
Total assets ^                               $    28,635     $    23,275
Liabilities and Equity ^
Short-term debt ^                            $    3,476      $    719
Current portion of long-term debt ^              314             14
Trade accounts payable ^                          3,701           3,173
Other current liabilities ^                       4,096           3,041
Total current liabilities ^                       11,587          6,947
Long-term debt ^                                 4,142           3,348
Other non-current liabilities ^                  850             905
Total liabilities ^                               16,579          11,200
Redeemable noncontrolling interest ^(11)         47              -
Total equity ^                                    12,009          12,075
Total liabilities and equity ^               $    28,635     $    23,275



Condensed Consolidated Statements of Cash Flows (Unaudited)
                                                             Nine Months Ended
                                                             September 30,
(In millions)                                                2012        2011
Operating Activities
Net income                                                 $ 656       $ 680
Adjustments to reconcile net income to cash provided by
(used for) operating activities:
Impairment charges                                           44          -
Gains on sales of investments                                (85)        (37)
Gain on acquisition of controlling interest                  (36)        -
Foreign exchange loss (gain) on debt                         (75)        103
Depreciation, depletion and amortization                     414         398
Other, net                                                   32          108
Changes in operating assets and liabilities, excluding the
effects of acquisitions:
Trade accounts receivable                                    (1,316)     287
Inventories                                                  (2,665)     63
Trade accounts payable and accrued liabilities               947         (355)
Other, net                                                   (788)       116
Cash provided by (used for) operating activities             (2,872)     1,363
Investing Activities
Payments made for capital expenditures                       (667)       (705)
Acquisitions of businesses (net of cash acquired)            (287)       (104)
Proceeds from sale of investments in affiliates              483         70
Other, net                                                   (55)        23
Cash provided by (used for) investing activities             (526)       (716)
Financing Activities
Net borrowings (repayments) of short-term debt               2,681       (317)
Net proceeds (repayments) of long-term debt                  744         414
Proceeds from sale of common shares                          13          19
Repurchases of common shares                                 -           (120)
Dividends paid                                               (138)       (129)
Other, net                                                   (2)         27
Cash provided by (used for) financing activities             3,298       (106)
Effect of exchange rate changes on cash and cash             (45)        (64)
equivalents
Net increase (decrease) in cash and cash equivalents         (145)       477
Cash and cash equivalents, beginning of period               835         578
Cash and cash equivalents, end of period                   $ 690       $ 1,055

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 excluding
interest income, interest 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'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 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)                              2012     2011     2012       2011
Total segment EBIT                       $ 441   $  191    $ 982     $  881
Interest income                            13       28       60         72
Interest expense                           (86)     (80)     (230)      (222)
Income tax expense                         (80)     1        (162)      (62)
Noncontrolling interest share of           9        -        13         19
interest and tax
Net income attributable to Bunge         $ 297   $  140    $ 663     $  688

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

Below is a reconciliation to earnings per common share-diluted (excluding
certain gains and charges) to earnings per common share-diluted. Earnings per
common share-diluted (excluding certain gains and charges) is a non-GAAP
financial measure and is not a measure of earnings per common share–diluted,
the most directly comparable 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,
                                             2012     2011      2012     2011
Earnings per common share-diluted
(excluding
 certain gains & charges)               $ 2.08   $ 0.86   $  3.99  $  4.15
Certain gains & charges (see Additional
Financial
 Information section)                  $ (0.16) $ 0.03   $  0.30  $  0.27
Earnings per common share-diluted          $ 1.92   $ 0.89   $  4.29  $  4.42

Notes

^(1) 2012 Fertilizer segment EBIT includes a $27 million provision
recorded in other income (expense) – net in the first quarter of 2012 stemming
from an environmental incident due to a sulfuric acid spill during vessel
unloading in the south of Brazil in 1998.

^(2) 2012 Agribusiness segment EBIT includes a pretax gain of $85 million
recorded in the second quarter of 2012 from the sale of Bunge's interest in
The Solae Company. 2011 Agribusiness segment EBIT includes a pretax gain of
$37 million recorded in the second quarter of 2011 from the sale of Bunge's
interest in a European oilseed processing facility joint venture. ^

^(3) 2012 Milling products segment EBIT includes a gain of $36 million
recorded in the second quarter arising from the acquisition of a controlling
interest in a North American milling business in which Bunge previously held a
minority investment.

^(4) 2011 Edible Oil products segment EBIT includes a gain of $6 million
recorded other income (expense) – net in the third quarter of 2011 related to
the sale of an idled facility in Canada for approximately $7 million in cash.
^

^(5) 2012 Sugar and Bioenergy segment EBIT includes impairment charges
of $10 million recorded in equity in earnings in affiliates and $29 million
recorded in selling, general and administrative expenses, both in the third
quarter of 2012, related to the write down of the investment in and a loan to
a North American bioenergy joint venture, respectively.^

^(6) Includes interest expense on readily marketable inventories of $45
million and $24 million for the quarters ended September 30, 2012 and 2011,
respectively, and $95 million and $84 million for the nine months ended
September 30, 2012 and 2011, respectively.

^(7)  Weighted-average common shares outstanding-diluted for the quarter
and nine months ended September 30, 2012 exclude the dilutive effect of
approximately 4 million 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 quarter
and nine months ended September 30, 2012 include the dilutive effect of 7.6
million weighted average common shares that would be issuable upon conversion
of Bunge's convertible preference shares.

Weighted-average common shares outstanding-diluted excludes the dilutive
effect of outstanding stock options and contingently issuable restricted stock
units of approximately 3 million for the quarter and nine months ended
September 30, 2011. Weighted-average common shares outstanding-diluted for
the quarter ended September 30, 2012 excludes and for the nine months ended
September 30, 2012 includes approximately 7.5 million weighted average common
shares that would be issuable upon conversion of Bunge's convertible
preference shares.

^(8) See Reconciliation of non-GAAP Measures.

^(9) Beginning in the first quarter of 2012, the management
responsibilities for certain Brazilian port facilities were moved from the
agribusiness segment to the fertilizer segment. Accordingly, amounts for prior
periods presented have been reclassified to conform to the current period
segment presentation.

^(10) Includes readily marketable inventories of $6,149 million and $4,075
million at September 30, 2012 and December 31, 2011, respectively.

^(11) Redeemable Noncontrolling Interest of $47 million represents
ownership interests in two consolidated entities where the investors have the
right to require the company to repurchase their interest in the respective
entities subject to certain conditions including passage of time.



SOURCE Bunge Limited

Website: http://www.bunge.com
Contact: Investor - Mark Haden, Bunge Limited, +1-914-684-3398,
mark.haden@bunge.com, or Media - Susan Burns, Bunge Limited, +1-914-684-3246,
susan.burns@bunge.com