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Last updated on April 20, 2014 at 21:20 EDT

Bunge Reports Second Quarter Results

July 26, 2012

WHITE PLAINS, N.Y., July 26, 2012 /PRNewswire/ – Bunge Limited (NYSE: BG)

  • Total segment EBIT of $403 million, including gains on transactions of $121 million
  • Agribusiness produced strong results
  • Sugar & Bioenergy results lower than expected as rains delayed harvest
  • Food & Ingredients impacted by lower margins; Fertilizer results as expected

Financial Highlights

                                                                                                                                                 Quarter Ended                                Six Months Ended
                                                                                                                                           -------------                                ----------------
    US$ in millions, except per share                                                                                                                                     6/30/12  6/30/11  6/30/12  6/30/11
    data
    Volume (000 metric tons)                                                                                                                                               40,673   35,527   76,351   64,811
    Net sales                                                                                                                                                             $15,090  $14,488  $28,536  $26,682
    Total segment EBIT (a)                                                                                                                                                   $403     $373     $541     $690
    Agribusiness                                                                                                                                                             $386     $308     $583     $557
    Sugar & Bioenergy                                                                                                                                                        $(28)     $18     $(61)     $20
    Edible Oil Products                                                                                                                                                        $2      $30      $23      $64
    Milling Products                                                                                                                                                          $44      $22      $71      $55
    Fertilizer                                                                                                                                                                $(1)     $(5)    $(75)     $(6)
    Net income attributable to Bunge                                                                                                                                         $274     $316     $366     $548
    Earnings per common share-diluted                                                                                                                                       $1.78    $2.02    $2.37    $3.51
    Earnings per common share-diluted (a)                                                                                                                                   $1.20    $1.78    $1.91    $3.27
    (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’s Agribusiness operations performed well in a volatile environment, but Sugar & Bioenergy, which was impacted by adverse weather conditions, and Food & Ingredients delivered lower than expected earnings. Looking ahead, we expect a strong second half of 2012.

“Weather is always an important variable in the agribusiness and food industries, but this year it is particularly significant. Global stocks of corn and soybeans are already tight, and a severe drought in the U.S. has lowered expectations for a replenished supply this fall and driven commodity futures prices to record levels. As the world adjusts to these developments we are likely to see a tempering of near-term demand among commercial customers, the emergence of non-traditional trade flows both within regions and globally, as well as massive planting by farmers in the Southern Hemisphere. Large crops next spring from farmers in South America will help provide relief to a stressed market.

“We expect Bunge will have a strong second half of the year, not only because we are confident in our businesses and our approach, but also because we are confident that the role we play as a company is both meaningful and valued. In times of tight commodity stocks and price volatility, farmers depend on a trusted outlet for their crops, commercial customers rely on a responsive supplier, and the world requires flexible trade that can move products smoothly and safely from where they are to where they need to be. Bunge’s strong balance sheet, efficient operations, diverse product portfolio and global asset network enable us to provide these services in the most challenging of times.

“Of course, record commodity prices spark concern for the food security of vulnerable communities. However, while corn and soybean stocks are low, global stocks of other key staples, including wheat and rice, are at more comfortable levels. The availability of these crops, combined with rational approaches by governments to domestic food, agriculture and trade policies, fast response from aid agencies and cooperation from industry, should help the world respond quickly and effectively to potential issues.”

Second Quarter Results

Agribusiness
Results in the quarter were primarily driven by strong performances in oilseed processing and grain merchandising in our South American operations. Results in our European merchandising business, which benefited from the addition of our new Ukrainian port terminal, also improved and contributed to the higher volume in the quarter. The addition of grain facilities in the U.S. related to our new grain export terminal in the Pacific Northwest and oilseed processing capacity expansions in Asia that came on-stream last year also contributed to the increase in volume. Results in the quarter included an $85 million gain on sale of our minority stake in Solae. Results in the second quarter of 2011 included a $37 million gain related to the sale of our interest in a European oilseed processing facility joint venture.

Sugar & Bioenergy
Rainy weather in the center south of Brazil interrupted milling operations and reduced the sugar content of harvested sugarcane. This led to lower than expected industrial volumes and higher unit costs, which contributed to the loss in the quarter. These impacts exacerbated what is normally a seasonally weak period. Results in 2011 benefited from unusually high ethanol prices resulting from the tight supply situation in Brazil. Lower volumes in the quarter were primarily related to our merchandising business.

Edible Oil Products
Performance was weaker in most regions, primarily due to lower margins in packaged oil resulting from volatile raw material prices. The quarter included an impairment charge of approximately $5 million related to the closing of a European margarine plant as part of a facilities consolidation program to improve efficiency.

Milling Products
Lower results in the quarter were primarily due to the combination of lower margins in wheat milling and continuing challenges related to the completed implementation of a new SAP system in Brazil that impacted volumes and margins. Results in the quarter included a gain of $36 million arising from the acquisition of the remaining interest in a Mexican wheat milling business in which we previously held a minority investment.

Fertilizer
Results in Fertilizer showed considerable improvement from the first quarter, but trailed last year as higher volume was more than offset by lower margins. While margins were lower, they improved throughout the quarter as the business worked through its high cost inventory following the decrease in international prices earlier in the year. Results in the second quarter of 2011 were adversely impacted by approximately $17 million of net charges primarily related to inventory adjustments and bad debt 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 six months ended June 30, 2012 was 19% compared to 11% for the same period last year. The higher effective tax rate primarily reflects earnings mix and the gain on sale of our minority stake in Solae.

Outlook

Drew Burke, Chief Financial Officer, stated, “We expect continued overall strong performance in Agribusiness in the second half of the year, though demand could slow with the higher prices. Due to tight soybean supplies in South America, oilseed processing in the U.S. should benefit from strong export demand when harvest commences. Our European sunseed and Canadian canola processing operations should benefit from the combination of large crop production and increased oil and meal demand due to tightness in the global soybean and European rapeseed supply. We expect rapeseed processing margins to remain under pressure. While processing in China will likely remain challenging, we expect margins to improve later in the year as the market works through excess inventory in the country. Considering the smaller U.S. corn harvest, global grain demand will be met by a variety of products from different geographies. With our global network of ports and elevators, our grain merchandising operations should perform well in this environment, meeting our customers’ supply needs.

“In Sugar & Bioenergy, we expect significantly improved results as we have entered the seasonally stronger period and weather conditions in Brazil have improved. We expect to crush between 17 and 18 million metric tons of sugarcane this year, and we are on track to reach this year’s planting target of approximately 70 thousand hectares of sugarcane. While the heavy rainfall negatively impacted our results this past quarter, it benefits the development of the sugarcane, and we feel increasingly more confident in our ability to mill at capacity in 2013.

“Food & Ingredients should show considerable improvement as pricing comes in line with raw material costs, though margins may remain under some pressure.

“In Fertilizer, farm economics are strong and South America is entering its high-volume period with approximately 60% of the expected volume to be sold between July and December.

“Lastly, we are increasing our full year effective tax rate expectation to a range of 17-20% to reflect our expected mix of earnings and the transaction gain in the second quarter.”

Conference Call and Webcast Details

Bunge Limited’s management will host a conference call at 10:00 a.m. EDT on July 26, 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 (888) 895-5479. If you are located outside the United States or Canada, dial (847) 619-6250. Please dial in five to 10 minutes before the scheduled start time. When prompted, enter confirmation code 32862743. 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 “Q2 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 July 26, 2012, continuing through August 26, 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 32862743. 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 six months ended June 30, 2012 and 2011.


                                                                                    Net Income Earnings
                                                    Total Segment Attributable to   Per Share
    (In millions, except per share data)                 EBIT          Bunge          Diluted
    Quarter Ended June 30:                                                    2012                     2011 2012    2011   2012     2011
    ----------------------                                                    ----                     ---- ----    ----   ----     ----
    Gain on sale of investments (2)                                            $85                      $37  $54     $37  $0.35    $0.24
                                                                                                        ---          ---
    Gain on acquisition of controlling interest (3)                             36                        -   36       -   0.23        -
    ----------------------------------------------                             ---                      ---  ---     ---   ----      ---
    Total                                                                     $121                      $37  $90     $37  $0.58    $0.24
    -----                                                                     ----                      ---  ---     ---  -----    -----

                                                                                    Net Income Earnings
                                                    Total Segment Attributable to   Per Share
    (In millions, except per share data)                 EBIT          Bunge          Diluted
    Six Months Ended June 30:                                                 2012                     2011 2012    2011   2012     2011
    -------------------------                                                 ----                     ---- ----    ----   ----     ----

    Other income (expense) - net(1)                                           $(27)          $            - $(18) $    - $(0.12) $     -
                                                                                                        ---          ---
    Gain on sale of investments (2)                                             85                       37   54      37   0.35     0.24
                                                                                                        ---          ---
    Gain on acquisition of controlling interest (3)                             36                        -   36       -   0.23        -
    ----------------------------------------------                             ---                      ---  ---     ---   ----      ---
    Total                                                                      $94                      $37  $72     $37  $0.46    $0.24
    -----                                                                      ---                      ---  ---     ---  -----    -----

    Consolidated Earnings Data (Unaudited)

                                          Quarter Ended          Six Months Ended
                                             June 30,                June 30,
                                             --------                --------
    (In
     millions)                                             2012                 2011     2012     2011
    ----------                                             ----                 ----     ----     ----
    Net
     sales                                              $15,090              $14,488  $28,536  $26,682
    Cost
     of
     goods
     sold                                               (14,430)             (13,841) (27,355) (25,396)
    ------                                              -------              -------  -------  -------
    Gross
     profit                                                 660                  647    1,181    1,286
     Selling,
     general
     and
     administrative
     expenses                                              (396)                (383)    (815)    (727)
     Foreign
     exchange
     gain
     (loss)                                                  18                   77       84      119
                                                                                 ---
    Other
     income
     (expense)-net                                           (8)                   1      (37)      (7)
    --------------                                          ---                  ---      ---
    Gain
     on
     sale
     of
     investments                                             85                   37       85       37
    Gain
     on
     acquisition
     of
     controlling
     interest                                                36                    -       36        -
    EBIT
     attributable
     to
     noncontrolling
     interest                                                 8                   (6)       7      (18)
    ---------------                                         ---                  ---      ---      ---
    Total
     Segment
     EBIT
     (7)                                                    403                  373      541      690
    --------                                                ---                  ---      ---      ---
     Interest
     income                                                  21                   23       47       44
     Interest
     expense
     (4)                                                    (82)                 (70)    (144)    (142)
    Income
     tax
     (expense)
     benefit                                                (68)                 (20)     (82)     (63)
     Noncontrolling
     interest
     share
     of
     interest
     and
     tax                                                      -                   10        4       19
     --------------                                         ---                  ---      ---      ---
    Net
     income
     attributable
     to
     Bunge                                                  274                  316      366      548
    -------------                                           ---                  ---      ---      ---
     Convertible
     preference
     share
     dividends                                               (9)                  (9)     (17)     (17)
     -----------                                            ---                  ---      ---      ---
    Net
     income
     available
     to
     Bunge
     common
     shareholders                                          $265                 $307     $349     $531
    -------------                                          ----                 ----     ----     ----
     Diluted
     earnings
     per
     common
     share                                                $1.78                $2.02    $2.37    $3.51
     --------                                             -----                -----    -----    -----
     Weighted-average
     common
     shares
     outstanding
     -
     diluted
     (5)                                                    154                  156      154      156
     ----------------                                       ---                  ---      ---      ---

    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                      Six Months Ended
                                                   June 30,                             June 30,
                                                   --------                             --------
    (In millions, except
     volumes)                                               2012                             2011 (6)                     2012  2011 (6)
    --------------------                                    ----                              -------                     ----   -------
    Volumes (in thousands
     of metric tons):
    Agribusiness                                          34,723                               29,290                   65,373    53,501
    Sugar & Bioenergy                                      1,804                                2,262                    3,135     3,700
    Edible oil products                                    1,634                                1,453                    3,184     2,863
    Milling products                                       1,087                                1,138                    2,133     2,381
    Fertilizer                                             1,425                                1,384                    2,526     2,366
    ----------                                             -----                                -----                    -----     -----
    Total                                                 40,673                               35,527                   76,351    64,811
    -----                                                 ------                               ------                   ------    ------
    Net sales:
    Agribusiness                                         $10,580                               $9,624                  $19,897    17,726
    Sugar & Bioenergy                                      1,079                                1,420                    1,960     2,481
    Edible oil products                                    2,331                                2,200                    4,552     4,216
    Milling products                                         421                                  491                      848       991
    Fertilizer                                               679                                  753                    1,279     1,268
    ----------                                               ---                                  ---                    -----     -----
    Total                                                $15,090                              $14,488                  $28,536    26,682
    -----                                                -------                              -------                  -------    ------
    Gross profit:
    Agribusiness                                            $478                                 $401                     $830       801
    Sugar & Bioenergy                                         15                                   47                       23        79
    Edible oil products                                       91                                  114                      204       228
    Milling products                                          43                                   54                       99       111
    Fertilizer                                                33                                   31                       25        67
    ----------                                               ---                                  ---                      ---       ---
    Total                                                   $660                                 $647                   $1,181     1,286
    -----                                                   ----                                 ----                   ------     -----
    Selling, general and
     administrative
     expenses:
    Agribusiness                                           $(205)                               $(191)                   $(420)     (366)
    Sugar & Bioenergy                                        (37)                                 (44)                     (81)      (82)
    Edible oil products                                      (89)                                 (83)                    (181)     (157)
    Milling products                                         (34)                                 (29)                     (65)      (57)
    Fertilizer                                               (31)                                 (36)                     (68)      (65)
    ----------                                               ---                                  ---                      ---       ---
    Total                                                  $(396)                               $(383)                   $(815)     (727)
    -----                                                  -----                                -----                    -----      ----

    Foreign exchange gain
     (loss):
    Agribusiness                                             $20                                  $69                      $74      $103
    Sugar & Bioenergy                                         (5)                                  12                        -        23
    Edible oil products                                       (2)                                   -                       (3)       (1)
    Milling products                                           -                                    -                        -         -
    Fertilizer                                                 5                                   (4)                      13        (6)
    ----------                                               ---                                  ---                      ---       ---
    Total                                                    $18                                  $77                      $84      $119
    -----                                                    ---                                  ---                      ---      ----

    Segment earnings before
     interest and tax:
    Agribusiness (2)                                        $386                                 $308                     $583      $557
    Sugar & Bioenergy                                        (28)                                  18                      (61)       20
    Edible oil products                                        2                                   30                       23        64
    Milling products (3)                                      44                                   22                       71        55
    Fertilizer                                                (1)                                  (5)                     (75)       (6)
    ----------                                               ---                                  ---                      ---       ---
    Total(7)                                                $403                                 $373                     $541      $690
    -------                                                 ----                                 ----                     ----      ----

    Condensed Consolidated Balance Sheets (Unaudited)

                                             June 30,          December
                                                                  31,
                                             --------         ---------
    (In millions)                                2012              2011
    ------------                                 ----              ----
    Assets
    Cash and cash
     equivalents                                         $467              $835
    Trade accounts
     receivable, net                                    2,805             2,459
    Inventories (8)                                     7,930             5,733
    Other current assets                                5,158             4,101
    --------------------                                -----             -----
    Total current assets                               16,360            13,128
    --------------------                               ------            ------
    Property, plant and
     equipment, net                                     5,596             5,517
    Goodwill and other
     intangible assets, net                             1,186             1,113
    Investments in
     affiliates                                           278               600
    Other non-current assets                            3,293             2,917
    Total assets                                      $26,713           $23,275
    ------------                                      -------           -------
    Liabilities and Equity
    Short-term debt                                    $2,332              $719
    Current portion of long-
     term debt                                            315                14
    Trade accounts payable                              3,048             3,173
    Other current
     liabilities                                        3,979             3,041
    -------------                                       -----             -----
    Total current
     liabilities                                        9,674             6,947
    -------------                                       -----             -----
    Long-term debt                                      4,247             3,348
    Other non-current
     liabilities                                          920               905
    Total equity                                       11,872            12,075
    Total liabilities and
     equity                                           $26,713           $23,275
    ---------------------                             -------           -------

    Condensed Consolidated Statements of Cash Flows (Unaudited)

                                                     Six Months Ended
                                                         June  30,
                                                         ---------
    (In millions)                                                  2012  2011
    ------------                                                   ----  ----
    Operating Activities
    Net income                                                     $355  $547
    Adjustments to reconcile net
     income to cash provided by (used
     for) operating activities:
    Gain on sale of investments                                     (85)  (37)
    Gain on acquisition of
     controlling interest                                           (36)    -
    Foreign exchange loss (gain) on
     debt                                                           (49)  (78)
    Depreciation, depletion and
     amortization                                                   264   247
    Other, net                                                      (48) (108)
    Changes in operating assets and
     liabilities, excluding the
     effects of acquisitions:
    Trade accounts receivable                                      (434)  (64)
    Inventories                                                  (2,513)  (86)
    Trade accounts payable and
     accrued liabilities                                            186  (431)
    Other, net                                                     (339)  274
    ----------                                                     ----   ---
    Cash provided by (used for)
     operating activities                                        (2,699)  264
    ---------------------------                                  ------   ---
    Investing Activities
    Payments made for capital
     expenditures                                                  (473) (454)
    Acquisitions of businesses (net
     of cash acquired)                                             (277)  (83)
    Proceeds from investments                                       535   122
    Other, net                                                      (68)  (25)
    ----------                                                      ---   ---
    Cash provided by (used for)
     investing activities                                          (283) (440)
    ---------------------------                                    ----  ----
    Financing Activities
    Net borrowings (payments) of
     short-term debt                                              1,620  (838)
    Net proceeds (repayments) of
     long-term debt                                               1,123   937
    Proceeds from sale of common
     shares                                                          10    16
    Dividends paid                                                  (89)  (85)
    Other, net                                                        -    28
    ----------                                                      ---   ---
    Cash provided by (used for)
     financing activities                                         2,664    58
    ---------------------------                                   -----   ---
    Effect of exchange rate changes
     on cash and cash equivalents                                   (50)   10
    -------------------------------                                 ---   ---
    Net increase (decrease) in cash
     and cash equivalents                                          (368) (108)
    -------------------------------                                ----  ----
    Cash and cash equivalents,
     beginning of period                                            835   578
    --------------------------                                      ---   ---
    Cash and cash equivalents, end of
     period                                                        $467  $470
    ---------------------------------                              ----  ----

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          Six Months Ended
                          June 30,                June 30,
                          --------                --------
    (In millions)                 2012  2011                   2012  2011
    ------------                  ----  ----                   ----  ----
    Total segment EBIT            $403  $373                   $541  $690
    Interest income                 21    23                     47    44
    Interest expense               (82)  (70)                  (144) (142)
    Income tax expense             (68)  (20)                   (82)  (63)
    Noncontrolling
     interest share of
     interest and tax                -    10                      4    19
    ------------------             ---   ---                    ---   ---
    Net income
     attributable to
     Bunge                        $274  $316                   $366  $548
    ----------------              ----  ----                   ----  ----

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 June 30,       Six Months Ended June  30,
                                                      ----------------------       --------------------------
                                                                              2012             2011            2012  2011
                                                                              ----             ----            ----  ----
    Earnings per common share-diluted (excluding
    --------------------------------------------
        certain gains & charges)                                             $1.20            $1.78           $1.91 $3.27
        -----------------------
    Certain gains & charges (see Additional Financial
    -------------------------------------------------
         Information section)                                                $0.58            $0.24           $0.46 $0.24
         -------------------                                                 -----            -----           ----- -----
    Earnings per common share-diluted                                        $1.78            $2.02           $2.37 $3.51
    ---------------------------------                                        -----            -----           ----- -----

?Notes

  1. First quarter 2012 EBIT includes a $27 million provision in the fertilizer segment stemming from an environmental incident due to a sulfuric acid spill during vessel unloading in the south of Brazil in 1998.
  2. Second quarter 2012 EBIT includes a pretax gain of $85 million in the agribusiness segment from the sale of Bunge’s interest in The Solae Company. Second quarter 2011 EBIT includes a pretax gain of $37 million in the agribusiness segment from the sale of Bunge’s interest in a European oilseed processing facility joint venture.
  3. Second quarter 2012 EBIT includes a gain of $36 million in the milling segment arising from the acquisition of a controlling interest in a North American milling business in which Bunge previously held a minority investment.
  4. Includes interest expense on readily marketable inventories of $33 million and $32 million for the quarters ended June 30, 2012 and 2011, respectively, and $50 million and $60 million for the six months ended June 30, 2012 and 2011, respectively.
  5. Weighted-average common shares outstanding-diluted for the quarter and six months ended June 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 six months ended June 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 for the quarter and six months ended June 30, 2011 exclude the dilutive effect of approximately 1 million and 2 million respectively, 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 six months ended June 30, 2011 include the dilutive effect of 7.5 million weighted average common shares that would be issuable upon conversion of Bunge’s convertible preference shares.
  6. 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.
  7. See Reconciliation of non-GAAP Measures.
  8. Includes readily marketable inventories of $5,876 million and $4,075 million at June 30, 2012 and December 31, 2011, respectively.

SOURCE Bunge Limited


Source: PR Newswire