Breaking News

Sun Hung Kai's Thomas Kwok Sentenced to 5 Years in Jail
Tweet TWEET

Bunge Reports First Quarter 2014 Results

                   Bunge Reports First Quarter 2014 Results

PR Newswire

WHITE PLAINS, N.Y., May 1, 2014

WHITE PLAINS, N.Y., May 1, 2014 /PRNewswire/ --Bunge Limited (NYSE:BG)

  oTotal segment EBIT of $75 million, down $185 million vs. last year on an
    adjusted basis
  oIndustry fundamentals intact; full-year outlook remains positive,
    targeting combined Agribusiness-Food ROIC of 1.5 points over WACC
  oAgribusiness impacted by grain trading & distribution and China crush
  oSugar & Bioenergy impacted by mark-to-market losses and sugar trading &
    distribution; strategic review of sugarcane milling operation is
    progressing
  oRepurchased $92 million of shares during the quarter; expect to repurchase
    an additional $108 million during Q2

Financial Highlights

                                                  Quarter Ended
US$ in millions, except per share data            3/31/14     3/31/13
Net sales                               $13,461                    $14,785
Total segment EBIT ^(a)                 $75                        $323
Certain gains & charges ^(b)            -                          $63
Total segment EBIT, adjusted ^(a)       $75                        $260
Agribusiness                            $79                        $175
Sugar & Bioenergy                       $(64)                      $23
Food & Ingredients ^(c)                 $54                        $59
Fertilizer                              $6                         $3
Net income (loss) per common share from $(0.15)                    $1.21
continuing operations-diluted ^(a)
Net income (loss) per common share from
continuing operations-diluted, adjusted $(0.12)                    $1.15
^(a)
(a) Total segment earnings before interest and tax ("EBIT"); total segment
EBIT, adjusted; 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 for the
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

Soren Schroder, Bunge's Chief Executive Officer stated, "The first quarter was
slower than expected, but our outlook for the remainder of the year is
positive. Results in the quarter were primarily impacted by losses in our
grain trading & distribution business that are behind us and a temporarily
depressed crushing environment in China.

"The global agribusiness and food markets, despite some challenges, look
strong with solid demand and crush margins in most regions. Soybean harvests
in South America are large, and farmers, particularly in Argentina, have
increased their commercialization of crops. Our team in Brazil is doing a
first-rate job managing market risks and optimizing logistics flows, which has
positioned us well for executing on this harvest. Farmers in the Northern
Hemisphere are expected to plant large crops this spring, which should drive
strong asset utilization and exports later in the year.

"We continue to target full-year, combined returns in agribusiness and food &
ingredients at 1.5 points above cost of capital. Our global operational
improvement programs and working capital management initiatives are
progressing well. The Bunge team is focused on delivering strong, long-term
shareholder value through improved operational performance in our core
businesses, disciplined capital management, and a balanced approach to capital
allocation.

"We are actively pursuing strategic alternatives for the Brazilian sugarcane
business with the goal of maximizing value for shareholders. We are also
continuing with cost and productivity improvements at our mills, which will
become evident through the crushing season. During the quarter we returned $92
million to Bunge's shareholders through our share repurchase program and
expect to repurchase another $108 million during the second quarter."

First Quarter Results

Agribusiness
Strong grain origination results in Brazil, whichbenefitedfrom the early
stages ofa record harvest, were offset by losses in our trading &
distribution operations, where our commercial and risk management strategies
anticipated lower grain prices. The combination ofdeteriorating U.S. winter
wheat conditionsandBlack Seapolitical volatility causedprices to rise,
pressuring margins. Additionally, ocean freight costs in our trading &
distribution operation were above market as we executed higher priced vessels
that were toward the end of their time charter contracts. Strong oilseed
processing margins in Europe, Brazil and the U.S. led to improved results,
despite a weak crushing environment in China. Year ago results included a
gain of $16 million related to the sale of certain legal claims in Brazil.

Sugar & Bioenergy
The first quarter is the inter-harvest period in Brazil when sugarcane mills
in the Center-South region typically do not operate and are selling sugar and
ethanol inventories from the previous sugarcane harvest.

Results in both our cane milling and trading & distribution businesses were
lower than last year. In sugarcane milling the primary drivers of the
difference were approximately $31 million of mark-to-market losses related to
hedges on our forward sugar sales and higher start-up costs, which last year
were mostly incurred in the second quarter due to the later start to the
milling season. Results in our trading & merchandising business were lower
than a strong year-ago period. Results in our biofuels business were higher
than last year primarily due to the favorable ethanol margin environment in
the U.S. and the contribution from our new corn wet milling joint venture in
Argentina.

Edible Oil Products
Results in the quarter reflect normal seasonal weakness and were lower than
last year. Improved performances in our U.S., Europe and Asia businesses were
more than offset by lower results in Brazil and Canada. Our Brazilian
operations focused on improving margins, which resulted in volume loss in
January and February, but recovered in March. In Canada, we also focused on
achieving better margins, with some initial volume loss. The Canadian results
were also impacted by lower volumes primarily due to the effects on demand of
the severe winter weather and rail logistics issues. SG&A was higher in the
quarter primarily reflecting increased advertising and sales promotion
spending to help grow our brands in certain retail markets and spending
related to performance improvement initiatives. Year ago results included a
gain of $9 million related to the sale of certain legal claims in Brazil.

Milling Products
Higher margins in our Brazilian wheat milling business were driven by
continued focus on extracting higher value through improved product and
channel mix and tight cost control. These gains more than offset lower
volumes of lower margin sales. Wheat milling results in Mexico benefited from
our new Altex acquisition, which performed to plan in the quarter. Results in
rice milling were comparable to last year. Results in our U.S. corn milling
were lower than last year primarily due to lower margins and higher energy
costs. Higher SG&A in the quarter was due to the addition of Altex. Year ago
results included a gain of $6 million related to the sale of certain legal
claims in Brazil.

Fertilizer
Higher results in the quarter were primarily driven by improved performance in
our Brazilian port operation. Year ago results included a gain of $32 million
related to the sale of certain legal claims in Brazil.

Cash Flow
Cash used by operations in the first quarter 2014 was approximately $1.1
billion compared to cash generated of $103 million in the same period last
year. The year-over-year variance primarily reflects higher levels of
inventory due to the Brazilian harvest arriving earlier this year and lower
levels of inventory last year due to the 2012 U.S. drought. Lower earnings in
this year's quarter also impacted cash flow.

Income Taxes
Income taxes for the quarter ended March 31, 2014 were $30 million. With the
low pre-tax income in the quarter, our effective tax rate for the period is
distorted and unusually high. We continue to expect our full-year tax rate to
be approximately 23%. 

Outlook

Drew Burke, Chief Financial Officer, stated, "We remain confident about the
full year. Demand for our products in most regions has been strong, and we
expect these conditions to persist throughout the year. In the near term, our
South American operations, which are in the early parts of harvest, will be
the primary driver of results. With the recent pick-up in pace of farmer
selling and strong export demand for soybean meal, crush margins and
utilizations in South America should remain strong through September when
export demand begins to shift back to North America. In China, the second
quarter will remain challenging as the industry works through the excess
supply of soybeans; however, we expect margins in the second half of the year
to improve significantly as supply and demand come into balance. In the
Northern Hemisphere we are entering the slow season; however, forward crush
margins for soy and soft seeds look good. 

"In sugar & bioenergy, we continue to expect full-year segment results to be
about breakeven and are managing the business to be free cash flow neutral.
Despite dry weather during the first quarter, we expect to have sufficient
cane to crush close to capacity. 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, similar to last year, we expect each quarter to
improve sequentially as we move into seasonally stronger periods of the year
and our performance improvement programs gain traction by improving our cost
base through higher productivity, cost reduction and working capital
management. The integration of our Altex wheat mills is going well, and we
expect to extract more value from our Mexico milling operations as the year
progresses."

Conference Call and Webcast Details

Bunge Limited's management will host a conference call at 10:00 a.m. EDT on
May 1, 2014 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 37112398. 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 "Q1 2014 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 May 1, 2014,
continuing through May 31, 2014. 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 37112398. 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. 

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 (loss) attributable to
Bunge and earnings per share for the quarter ended March 31, 2014 and 2013.

                                           Net Income (loss) Earnings
                             Total Segment Attributable to   Per Share
(In millions, except per     EBIT          Bunge             Diluted
share data)
Quarter Ended March 31:      2014   2013   2014     2013     2014     2013
Continuing operations:
  Sale of certain rights     $   -  $  63  $   -    $  41    $ -      $ 0.28
  ^(1)
  Discrete tax charges ^(2)      -     -       (5)     (31)    (0.03)   (0.22)
Discontinued operations:                       -               -
  Discrete tax charges ^(3)      -     -       -       (17)    -        (0.11)
Total                        $   -  $  63  $   (5)  $  (7)   $ (0.03) $ (0.05)



Consolidated Earnings Data (Unaudited)
                                                           Quarter Ended
                                                           March 31,
(In millions)                                              2014       2013
Net sales                                                $ 13,461   $ 14,785
Cost of goods sold                                        (13,047)   (14,138)
Gross profit                                               414        647
Selling, general and administrative expenses               (366)      (349)
Foreign exchange gains (losses)                            22         (40)
Other income (expense)−net ^(1)                            6          39
EBIT attributable to noncontrolling interest               (1)        26
Total Segment EBIT ^(4)                                    75         323
Interest income                                            19         9
Interest expense ^(5)                                      (79)       (76)
Income tax expense ^(2)                                   (30)       (73)
Noncontrolling interest share of interest and tax          7          6
Income (loss) from continuing operations, net of tax       (8)        189
Loss from discontinued operations, net of tax ^(3)         (5)        (9)
Net income (loss) attributable to Bunge ^(6)               (13)       180
Convertible preference share dividends and other           (14)       (10)
obligations
Net income (loss) available to Bunge common shareholders $ (27)     $ 170
Net income (loss) per common share diluted attributable
to Bunge common shareholders ^(7):
Continuing operations                                    $ (0.15)   $ 1.21
Discontinued operations                                    (0.03)     (0.06)
Net income (loss) per common share - diluted             $ (0.18)   $ 1.15
Weighted–average common shares outstanding - diluted      147        148



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)                   2014               2013
Volumes (in thousands of metric tons):
Agribusiness                                    31,674             31,446
Sugar & Bioenergy                               1,940              2,303
Edible oil products                             1,613              1,643
Milling products                                1,152              1,011
Fertilizer                                      137                135
Net sales:
Agribusiness                             $      10,093      $      10,774
Sugar & Bioenergy                               844                1,113
Edible oil products                             1,928              2,297
Milling products                                535                535
Fertilizer                                      61                 66
Total                                    $      13,461      $      14,785
Gross profit:
Agribusiness                             $      253         $      398
Sugar & Bioenergy                               (36)               57
Edible oil products                             121                116
Milling products                                69                 63
Fertilizer                                      7                  13
Total                                    $      414         $      647
Selling, general and administrative
expenses:
Agribusiness                             $      (192)       $      (191)
Sugar & Bioenergy                               (39)               (37)
Edible oil products                             (99)               (84)
Milling products                                (37)               (33)
Fertilizer                                      1                  (4)
Total                                    $      (366)       $      (349)
Foreign exchange gain (loss):
Agribusiness                             $      16          $      (41)
Sugar & Bioenergy                               5                  3
Edible oil products                             1                  (1)
Milling products                                -                  -
Fertilizer                                      -                  (1)
Total                                    $      22          $      (40)
Segment earnings before interest and
tax:
Agribusiness                             $      79          $      191
Sugar & Bioenergy                               (64)               23
Edible oil products                             22                 38
Milling products                                32                 36
Fertilizer                                      6                  35
Total ^(4)                               $      75          $      323



Condensed Consolidated Balance Sheets (Unaudited)
                                                     March 31,   December 31,
(In millions)                                        2014        2013
Assets
Cash and cash equivalents                            $  632      $    742
Time deposits under trade structured finance            3,259         4,470
program
Trade accounts receivable, net                          2,617         2,144
Inventories ^(8)                                        6,452         5,796
Other current assets                                    5,231         4,620
Total current assets                                    18,191        17,772
Property, plant and equipment, net                      6,166         6,075
Goodwill and other intangible assets, net               709           718
Investments in affiliates                               252           241
Other non-current assets                                2,137         1,975
Total assets                                         $  27,455   $    26,781
Liabilities and Equity
Short-term debt                                      $  1,291    $    703
Current portion of long-term debt                       765           762
Letter of credit obligations under trade structured     3,259         4,470
finance program
Trade accounts payable                                  3,828         3,522
Other current liabilities                               3,316         3,078
Total current liabilities                               12,459        12,535
Long-term debt                                          3,875         3,179
Other non-current liabilities                           1,022         942
Total liabilities                                       17,356        16,656
Redeemable noncontrolling interest                      38            37
Total equity                                            10,061        10,088
Total liabilities and equity                         $  27,455   $    26,781





Condensed Consolidated Statements of Cash Flows (Unaudited)
                                                              Quarter Ended
                                                              March 31,
(In millions)                                                 2014       2013
Operating Activities
Net income (loss) ^(6)                                      $ (19)     $ 148
Adjustments to reconcile net income (loss) to cash provided
by (used for) operating activities:
Foreign exchange loss (gain) on debt                          42         77
Depreciation, depletion and amortization                      124        121
Other, net                                                    4          (50)
Changes in operating assets and liabilities, excluding the
effects of acquisitions:
Trade accounts receivable, net                               (488)      (583)
Inventories                                                   (658)      415
Trade accounts payable and accrued liabilities                331        302
Other, net                                                    (393)      (327)
Cash provided by (used for) operating activities              (1057)     103
Investing Activities
Payments made for capital expenditures                        (165)      (224)
Acquisitions of businesses (net of cash acquired)             (12)       (11)
Proceeds from sale of investments                             30         13
Payments for investments                                      (39)       (6)
Payments for investments in affiliates                        (13)       (14)
Other, net                                                    (9)        (40)
Cash provided by (used for) investing activities              (208)      (282)
Financing Activities
Net borrowings (repayments) of short-term debt                629        (27)
Net proceeds (repayments) of long-term debt                   682        480
Proceeds from sale of common shares                           6          9
Repurchase of common shares                                   (92)       -
Dividends paid                                                (53)       (48)
Other, net                                                    (14)       -
Cash provided by (used for) financing activities              1,158      414
Effect of exchange rate changes on cash and cash              (3)        (3)
equivalents
Net increase (decrease) in cash and cash equivalents          (110)      232
Cash and cash equivalents, beginning of period                742        569
Cash and cash equivalents, end of period                   $ 632      $ 801



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 earnings before interest and tax (EBIT) is consolidated net
income (loss) 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 (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 (loss)
attributable to Bunge:



                                                         Quarter Ended
                                                         March 31,
(In millions)                                            2014     2013
Total segment EBIT                                     $ 75    $  323
Interest income                                          19       9
Interest expense                                         (79)     (76)
Income tax expense                                       (30)     (73)
Income (loss) from discontinued operations, net of tax   (5)      (9)
Noncontrolling interest share of interest and tax        7        6
Net income (loss) attributable to Bunge                $ (13)  $  180



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,
                                                           2014        2013
Continuing operations:
Net income (loss) per common share-diluted
  (excluding certain gains & charges and discontinued  $   (0.12)   $  1.15
  operations)
Certain gains & charges (see Additional Financial          (0.03)      0.06
Information section)
Net income (loss) per share - continuing operations        (0.15)      1.21
Discontinued operations:
Net income (loss) per common share-diluted from
  discontinued operations (excluding certain gains &       (0.03)      0.05
  charges)
Certain gains & charges (see Additional Financial          -           (0.11)
Information section)
Net income (loss) per share - discontinued operations      (0.03)      (0.06)
Net income (loss) per common share-diluted             $   (0.18)   $  1.15



Notes

^(1) 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 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.

^(2) 2014 income tax expense includes a charge of $5 million recorded in the
first quarter of 2014 related to an uncertain income tax position in North
America. ^

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 impacted our
assessment of an uncertain income tax position in Brazil and $4 million
related to the finalization of a European tax audit. ^ ^

^(3)2013 discontinued operations, net of tax, includes an income tax 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.

^(4) See Reconciliation of non-GAAP Measures.

^(5) Includes interest expense on readily marketable inventories of $21
million and $16 million for the quarters ended March 31, 2014 and 2013,
respectively.

^(6) A reconciliation of Net income (loss) attributable to Bunge to Net income
(loss) is as follows:

                                                  Quarter Ended
                                                  March 31,
                                                    2014    2013
Net income (loss) attributable to Bunge           $ (13)  $ 180
EBIT attributable to noncontrolling interest        1       (26)
Noncontrolling interest share of interest and tax   (7)     (6)
Net income (loss)                                 $ (19)  $ 148

^(7)Weighted-average common shares outstanding-diluted for the quarter ended
March 31, 2014 excludes the dilutive effect of approximately 3 million of
outstanding stock options and contingently issuable restricted stock units,
the dilutive effect of approximately 1 million incremental common shares and
the dilutive effect of approximately 8 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, 2013 excludes the dilutive effect of approximately 4 million of
outstanding stock options and contingently issuable restricted stock units and
also excludes the dilutive effect of approximately 8 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.

^(8)Includes readily marketable inventories of $5,065 million and $4,412
million at March 31, 2014 and December 31, 2013, respectively. Of these
amounts $3,631 million and $2,927 million, respectively, are attributable to
merchandising activities.



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.