Bunge Reports First Quarter 2013 Results

                   Bunge Reports First Quarter 2013 Results

PR Newswire

WHITE PLAINS, N.Y., April 25, 2013

WHITE PLAINS, N.Y., April 25, 2013 /PRNewswire/ --Bunge Limited (NYSE: BG)

  oTotal segment EBIT of $260 million, up 30% vs. last year on an adjusted
    basis
  oAgribusiness managed challenging markets well, but results lower than last
    year
  oSugar & bioenergy and food & ingredients off to a good start

Financial Highlights

                                                            Quarter Ended
US$ in millions, except per share
                                                              3/31/13  3/31/12
data
Net sales                                                   $14,785   $12,909
Total segment EBIT ^(a)                                     $323      $200
Certain gains & charges ^(b)                                $63       -
Total segment EBIT, adjusted ^(a)                           $260      $200
Agribusiness                                                $175      $197
Sugar & Bioenergy                                           $23       $(33)
Food & Ingredients ^(c)                                     $59       $48
Fertilizer                                                  $3        $(12)
Net income (loss) per common share from
                                                            $1.21     $0.81
continuing operations-diluted
Net income (loss) per common share from
                                                            $1.15     $0.81
continuing operations-diluted, adjusted
^(a)

     Total segment earnings before interest and tax ("EBIT") and net income
     (loss) per common share from continuing operations-diluted (excl. certain
     gains and charges and discontinued operations) are non-GAAP financial
(a) 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.
     Includes certain gains and charges included in segment EBIT for the
(b) quarter ended March 31, 2013 of $16 million for agribusiness, $15 million
     for food & ingredients and $32 million for fertilizer.
(c) Includes edible oil products and milling products segments.



Overview

Alberto Weisser, Bunge's Chairman and Chief Executive Officer stated, "We had
a solid first quarter. Our agribusiness team performed well, managing risk in
a volatile market environment characterized by tight global supplies and
challenging Brazilian logistics. We are pleased to see sugar & bioenergy get
off to a good start to the year, and that food & ingredients continued its
strong performance from the second half of last year.

"Looking ahead, agribusiness markets are transitioning from ones of tightness
to more comfortable supplies. Customer inventory pipelines are lean and in
need of restocking, so demand should remain strong. Farmers in South America
responded with record production and farmers in the Northern Hemisphere are
expected to respond similarly. The logistics congestion in Brazil is
improving, but delays will continue to persist until the U.S. harvest later
this year. We see positive signs in sugar & bioenergy as the weather in the
Center-South of Brazil has been ideal for cane development and early readings
of ATR, the sugar content in the cane, are on track to return to more normal
levels. We expect food & ingredients results to continue to improve
throughout the year."



First Quarter Results

Agribusiness
Improved oilseed processing results in the quarter were more than offset by
lower results in grain merchandising. Our merchandising business benefited
from strong global demand for Brazilian corn and soybean exports; however,
lower grain origination in Argentina and the Northern Hemisphere due to tight
supplies adversely impacted results. Soybean processing was higher in all
geographies with the largest contribution coming from the U.S., which
benefited from strong export demand due to tight supplies and delays in South
American harvests. Results in softseed processing in Canada and Europe were
lower due to margin pressure from weather-related supply shortages and slow
farmer selling.

Sugar & Bioenergy
The first quarter is the inter-harvest in Brazil when sugarcane mills in the
Center-South region typically do not operate until the end of the quarter, and
are selling sugar and ethanol inventories from the previous sugarcane
harvest. Results were higher in the quarter due to improved performance in
all parts of the segment. Sugarcane milling benefited from the combination of
lower inventory costs and higher average ethanol prices. Due to heavy rains
during the month, the start-up of some of our mills was postponed. This
weather delay will have a positive impact on the development of the sugarcane,
but a portion of the start-up costs associated with the mills will shift to
the second quarter. Trading & merchandising benefited from higher volumes and
margins on export programs and good risk management. U.S. biofuels benefited
from higher results in ourethanol joint venture due to improved margins.

Edible Oil Products
Higher results in the quarter were primarily due to improved performance in
Brazil, which experienced a challenging prior-year period, and in India, which
more than offset lower results in North America and Europe.

Milling Products
Higher results in the quarter were primarily due to improved performance in
our Brazilian wheat milling business, which experienced a challenging
prior-year period, and contributions from our 2012 acquisition in Mexico,
which more than offset lower results in corn milling.

Fertilizer
Results in our ongoing fertilizer operations were higher in both Argentina and
in our Morocco joint venture.

Cash Flow
Cash generated by operations in the first quarter 2013 was approximately $103
million compared to cash used of $302 million in the same period last year.
The year-over-year variance primarily reflects the combination of higher
earnings and lower inventories.

Income Taxes
The effective tax rate for the quarter ended March 31, 2013, excluding our
discontinued fertilizer business and $31 million of discrete tax items for the
period, was approximately 18%.



Outlook

Drew Burke, Chief Financial Officer, stated, "We remain confident about 2013,
though results will be more back-end weighted than previously expected.
Demand for agricultural commodities has been strong, which should continue to
draw exports out of South America, and assuming large crops in the Northern
Hemisphere, prices should moderate, spurring additional consumption and
restocking of inventory. However, slow commercialization of crops by farmers
in South America is shifting volume to future periods. Similarly, our oilseed
processing and merchandising operations in North America and Europe are being
impacted by the combination of tight supplies and farmers holding on to their
crops until they have more visibility into the progress of their new crops. 

"In sugar & bioenergy, with the favorable weather and development of our
sugarcane plantations during the inter-crop period, we are confident that we
will have sufficient cane to operate at capacity this season. Additionally,
ATR is showing early signs of returning to more normal levels, which combined
with our expected higher crush should significantly reduce our unit production
costs. Additionally, changes in Brazilian energy policy that will be in
effect this year should improve the economics of producing ethanol, offsetting
weaker sugar prices. Due to the seasonality of the Brazilian sugarcane
harvest, we expect results in this segment to be weighted toward the second
half of the year.

"In food & ingredients, following the strong start to the year, we expect the
solid performance to continue and results to progressively improve throughout
the year. We should extract greater value from our recent acquisitions and
improve our operating efficiencies with the start-up of operations at our new
multi-oil refining facility in India and our new refining and packaging
facility in Decatur, Alabama.

"Lastly, the pending sale of the Brazilian fertilizer business remains
on-track to close this year."



Conference Call and Webcast Details

Bunge Limited's management will host a conference call at 10:00 a.m. EDT on
April 25, 2013 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 (800) 446-1671. If you are located outside
the United States or Canada, dial (847) 413-3362. Please dial in five to 10
minutes before the scheduled start time. When prompted, enter confirmation
code 34543275. 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 "Q1 2013 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 April 25, 2013, continuing through May 25, 2013. 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
34543275. 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 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.



„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 ended March 31, 2013 and 2012.

                                             Net Income      Earnings
                               Total Segment Attributable to Per Share
(In millions, except per share EBIT          Bunge           Diluted
data)
Quarter Ended March 31:        2013  2012   2013     2012   2013     2012
Continuing operations:
  Sale of certain rights ^(1)  $  63  $ -    $  41    $ -    $ 0.28   $ -
  Discrete tax charges ^(2)       -   -       (31)    -      (0.22)   -
Discontinued operations:
  Discrete tax charges ^(3)       -   -       (17)    -      (0.11)   -
  Other income (expense) - net    -   (27)    -       (18)   -        (0.12)
  ^(4)
Total                          $  63  $ (27) $  (7)   $ (18) $ (0.05) $ (0.12)



Consolidated Earnings Data (Unaudited)
                                                        Quarter Ended
                                                        March 31,
(In millions)                                             2013       2012
Net sales                                               $ 14,785    $ 12,909
Cost of goods sold                                        (14,138)   (12,372)
Gross profit                                              647       537
Selling, general and administrative expenses              (349)      (393)
Foreign exchange gain (loss)                              (40)       58
Other income (expense)−net ^(1)                           39        (1)
EBIT attributable to noncontrolling interest              26        (1)
Total Segment EBIT ^(5)                                   323       200
Interest income                                           9         25
Interest expense ^(6)                                     (76)       (62)
Income tax expense                                        (73)       (40)
Noncontrolling interest share of interest and tax         6         4
Income from continuing operations, net of tax             189       127
Loss from discontinued operations, net of tax             (9)        (35)
Net income attributable to Bunge ^(7)                     180       92
Convertible preference share dividends and other          (10)       (8)
obligations
Net income available to Bunge common shareholders       $ 170       $ 84
Earnings per common share - diluted ^(8):
Net income (loss) from continuing operations            $ 1.21      $ 0.81
Net income (loss) from discontinued operations            (0.06)     (0.24)
Net income (loss) to Bunge common shareholders          $ 1.15      $ 0.57
Weighted–average common shares outstanding - diluted      148        147



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
                                               March 31,
(In millions, except volumes)                       2013            2012
Volumes (in thousands of metric tons):
Agribusiness                                        31,446         30,650
Sugar & Bioenergy                                   2,303          1,331
Edible oil products                                 1,643          1,550
Milling products                                    1,011          1,046
Fertilizer                                          135            124
Net sales:
Agribusiness                                   $    10,774      $    9,317
Sugar & Bioenergy                                   1,113          881
Edible oil products                                 2,297          2,221
Milling products                                    535            427
Fertilizer                                          66             63
Total                                          $    14,785      $    12,909
Gross profit:
Agribusiness                                   $    398         $    352
Sugar & Bioenergy                                   57             8
Edible oil products                                 116            113
Milling products                                    63             56
Fertilizer                                          13             8
Total                                          $    647         $    537
Selling, general and administrative expenses:
Agribusiness                                   $    (191)       $    (215)
Sugar & Bioenergy                                   (37)            (44)
Edible oil products                                 (84)            (92)
Milling products                                    (33)            (31)
Fertilizer                                          (4)             (11)
Total                                          $    (349)       $    (393)
Foreign exchange gain (loss):
Agribusiness                                   $    (41)        $    54
Sugar & Bioenergy                                   3              5
Edible oil products                                 (1)             (1)
Milling products                                    -              -
Fertilizer                                          (1)             -
Total                                          $    (40)        $    58
Segment earnings before interest and tax:
Agribusiness                                   $    191         $    197
Sugar & Bioenergy                                   23             (33)
Edible oil products                                 38             21
Milling products                                    36             27
Fertilizer                                          35             (12)
Total ^(5)                                     $    323         $    200



Condensed Consolidated Balance Sheets (Unaudited)
                                                    March 31,    December 31,
(In millions)                                       2013        2012
Assets
Cash and cash equivalents                           $ 801        $    569
Time deposits under trade structured finance          4,375         3,048
program
Trade accounts receivable, net                        2,957         2,471
Inventories ^(9)                                      6,074         6,590
Current assets held for sale                          747           660
Other current assets                                  4,839         3,926
Total current assets                                  19,793        17,264
Property, plant and equipment, net                    6,017         5,888
Goodwill and other intangible assets, net             638           646
Investments in affiliates                             277           273
Non-current assets held for sale                      251           250
Other non-current assets                              2,923         2,959
Total assets                                        $ 29,899     $    27,280
Liabilities and Equity
Short-term debt                                     $ 1,582      $    1,598
Current portion of long-term debt                     775           719
Letter of credit obligations under trade              4,375         3,048
structured finance program
Trade accounts payable                                3,643         3,319
Current liabilities held for sale                     278           297
Other current liabilities                             2,913         2,580
Total current liabilities                             13,566        11,561
Long-term debt                                        3,897         3,532
Non-current liabilities held for sale                 21            13
Other non-current liabilities                         929           881
Total liabilities                                     18,413        15,987
Redeemable noncontrolling interests                   32            38
Total equity                                          11,454        11,255
Total liabilities and equity                        $ 29,899     $    27,280



Condensed Consolidated Statements of Cash Flows (Unaudited)
                                                               Quarter Ended
                                                               March 31,
(In millions)                                                  2013     2012
Operating Activities
Net income ^(7)                                             $ 148     $ 89
Adjustments to reconcile net income to cash provided by
(used for) operating activities:
Foreign exchange loss (gain) on debt                           77       (15)
Depreciation, depletion and amortization                       121      120
Other, net                                                     (50)      1
Changes in operating assets and liabilities, excluding the
effects of acquisitions:
Trade accounts receivable                                      (583)     (439)
Inventories                                                    415      (549)
Trade accounts payable and accrued liabilities                 302      653
Other, net                                                     (327)     (162)
Cash provided by (used for) operating activities               103      (302)
Investing Activities
Payments made for capital expenditures                         (224)     (224)
Acquisitions of businesses (net of cash acquired)              (11)      (98)
Proceeds from investments                                      13       18
Payments for investments                                       (6)       (9)
Payments for investments in affiliates                         (14)      (49)
Other, net                                                     (40)      41
Cash provided by (used for) investing activities               (282)     (321)
Financing Activities
Net borrowings (payments) of short-term debt                   (27)      38
Net proceeds (repayments) of long-term debt                    480      1,031
Proceeds from sale of common shares                            9        8
Dividends paid                                                 (49)      (47)
Other, net                                                     1        3
Cash provided by (used for) financing activities               414      1,033
Effect of exchange rate changes on cash and cash equivalents   (3)       5
Net increase (decrease) in cash and cash equivalents           232      415
Cash and cash equivalents, beginning of period                 569      835
Cash and cash equivalents, end of period                     $ 801     $ 1,250



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
                                                         March 31,
(In millions)                                            2013     2012
Total segment EBIT                                     $ 323   $  200
Interest income                                          9        25
Interest expense                                         (76)     (62)
Income tax expense                                       (73)     (40)
Income (loss) from discontinued operations, net of tax   (9)      (35)
Noncontrolling interest share of interest and tax        6        4
Net income attributable to Bunge                       $ 180   $  92



Earnings per common share-diluted (excluding certain gains & charges)
Below is a reconciliation to 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 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 March 31,
                                                      2013         2012
Continuing operations:
Net income (loss) per common share-diluted
      (excluding certain gains & charges and
      discontinued operations)                        $   1.15     $  0.81
Certain gains & charges (see Additional
      Financial Information section)                      0.06        -
Net income (loss) per share - continuing operations       1.21        0.81
Discontinued operations:
Net income (loss) per common share-diluted from
      discontinued operations (excluding certain
      gains & charges)                                    0.05        (0.12)
Certain gains & charges (see Additional
      Financial Information section)                      (0.11)      (0.12)
Net income (loss) per share - discontinued operations     (0.06)      (0.24)
Net income (loss) per common share-diluted            $   1.15     $  0.57



Notes

         2013 EBIT includes a gain of $63 million recorded in other income
         (expense) – net in the first quarter of 2013 related to the sale of
^(1)   Bunge's rights to certain legal claims. The gain was $16 million, $9
         million, $6 million and $32 million in the agribusiness, edible oil
         products, milling and fertilizer segments, respectively.
         2013 income tax expense includes a charge of $27 million recorded in
         the first quarter of 2013 as a result of new legal precedents that
^(2)   impacted our assessment of an uncertain income tax position in Brazil
         and $4 million related to the finalization of a European tax audit. ^
         ^
         2013 discontinued operations, net of tax, includes an income tax
^(3)   charge of $17 million recorded in the first quarter of 2013 as a
         result of new legal precedents that impacted our assessment of an
         uncertain income tax position in Brazil.
         2012 discontinued operations, net of tax, includes a $27 million
^(4)   provision recorded 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. 
^(5)  See Reconciliation of non-GAAP Measures.
         Includes interest expense on readily marketable inventories of $16
^(6)   million and $17 million for the quarters ended March 31, 2013 and
         2012, respectively.
^(7) A reconciliation of Net income attributable to Bunge to Net income is
         as follows:



                                                  Quarter Ended
                                                  March 31,
                                                    2013    2012
Net income attributable to Bunge                  $ 180   $ 92
EBIT attributable to noncontrolling interest        (26)    1
Noncontrolling interest share of interest and tax   (6)     (4)
 Net income                                  $ 148   $ 89



         Weighted-average common shares outstanding-diluted for the quarter
         ended March 31, 2013 excludes the dilutive effect of approximately 4
         million of outstanding stock options and contingently issuable
^(8)  restricted stock units and also excludes the dilutive effect of
         approximately 7.6 million weighted average common shares that would
         be issuable upon conversion of Bunge's convertible preference shares
         because the effects of these conversions would not have been
         dilutive.
         Weighted-average common shares outstanding-diluted for the quarter
         ended March 31, 2012 excludes the dilutive effect of approximately 5
         million of outstanding stock options and contingently issuable
         restricted stock units and also excludes the dilutive effect of
         approximately 7.6 million weighted average common shares that would
         be issuable upon conversion of Bunge's convertible preference shares
         because the effects of these conversions would not have been
         dilutive.
^(9) Includes readily marketable inventories of $4,596 million and $5,306
         million at March 31, 2013 and December 31, 2012, respectively.



SOURCE Bunge Limited

Website: http://www.bunge.com
Contact: 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
 
Press spacebar to pause and continue. Press esc to stop.