WHITE PLAINS, N.Y., Oct. 22 /PRNewswire-FirstCall/ -- Bunge Limited
(NYSE: BG) -- Strong agribusiness results driven by good margins --
Fertilizer margins impacted by continued mismatch between current
market prices and inventory costs -- Reducing full-year earnings
guidance based on near-term fertilizer outlook Financial Highlights
(In millions, except per share data and percentages) Quarter Ended
Nine Months Ended 9/30/09 9/30/08 % Change 9/30/09 9/30/08 % Change
------- ------- -------- ------- ------- -------- Volumes (metric
tons) 36,843 35,221 5% 107,599 102,502 5% Net sales $11,298 $14,797
(24)% $31,490 $41,631 (24)% Total segment EBIT (1,2) $209 $247
(15)% $425 $1,767 (76)% Agri- business $294 $170 73% $760 $1,035
(27)% Fertilizer $(127) $84 (251)% $(442) $610 (172)% Edible Oil
Products $35 $(29) 221% $67 $36 86% Milling Products $7 $22 (68)%
$40 $86 (53)% Net income attributable to Bunge(2) $232 $234 (1)%
$350 $1,274 (73)% Earnings per common share- $1.62 $1.70 (5)% $2.48
$9.26 (73)% diluted (2,3) ----- ----- --- ----- ----- (1) Total
segment earnings before interest and tax ("EBIT") is a non-GAAP
financial measure. The information required by Regulation G under
the Securities Exchange Act of 1934, including a reconciliation to
net income attributable to Bunge, is included in the tables
attached to this press release. (2) Bunge's results included
certain gains and charges that may be of interest to investors. See
the Additional Financial Information section included in the tables
attached to this press release for more information. (3) See Note 2
to the consolidated statements of income attached to this press
release for information on the calculation of diluted earnings per
share. Overview Alberto Weisser, Bunge's Chairman and Chief
Executive Officer stated, "Bunge produced mixed results in the
third quarter. Our agribusiness operations performed well during a
volatile period, demonstrating the value of our global franchise
and the ability of our team to manage risk effectively. Edible oils
also posted a solid quarter. On the other hand, margins in our
fertilizer business continued to be pressured by high-cost
inventory and a weak pricing environment. "After rising during the
beginning of the third quarter, international phosphate prices
pulled back on lackluster global demand. This factor, combined with
lower demand in the Brazilian fertilizer market due to reduced
planting of fertilizer-intensive corn and cotton, as well as
farmers' cautious approach to input purchases, contributed to a
weaker than expected domestic pricing environment. While we expect
these conditions to persist in the fourth quarter, our margin
structure should reset to more traditional levels in 2010 as we
replenish our inventories at market cost. "We expect the overall
environment in 2010 to be one in which Bunge can perform well. The
USDA forecasts demand for soybean meal and vegetable oil to each
increase by 4 percent relative to this year. Despite the
anticipation of large crops in the northern and southern
hemispheres, global grain and oilseed stocks will remain tight when
compared to historical levels. Futures prices reflect these
expectations and, at current levels, should provide attractive
margins for farmers and encourage input purchases. "This quarter we
laid the foundation for our new export grain terminal in the U.S.
Pacific Northwest. Building our global grain business is one of our
core strategies and this terminal is a significant part of that
effort. When completed, it will handle over 8 million tons of
grains and oilseeds a year and serve as an important link between
our North American grain business and our customers in Asia. We are
also expanding in food and ingredients. Earlier this month, we
closed on our acquisition of Raisio's margarine businesses in
Europe. The transaction includes two margarine production
facilities and a portfolio of consumer margarine brands." Third
Quarter Results Agribusiness Our U.S. and Brazilian grain
origination businesses performed well in the quarter, benefiting
from a combination of tight soybean supplies in Argentina due to
weather-related issues earlier in the year and strong demand from
China. Higher soybean processing results in the U.S. and South
America were partially offset by lower softseed processing results
in Europe and Canada. Risk management strategies worked well during
a volatile period. Higher volume in the quarter was primarily
attributed to increased sugar merchandising. Foreign exchange gains
of $108 million from U.S. dollar denominated financing of working
capital, primarily in our Brazilian subsidiary, resulting from the
impact of a 10% appreciation of the real against the U.S. dollar
during the quarter, were offset by foreign exchange losses on
valuations of commodity inventories included in gross profit. Third
quarter results last year included a $60 million credit resulting
from a favorable ruling related to certain transactional taxes in
Brazil that were accrued and paid in past years. Fertilizer The
operating loss in the quarter was due to the continued mismatch
between current market prices and inventory costs, which negatively
impacted margins. While lower than expected, volumes increased in
the quarter due to a return to a more traditional seasonal sales
pattern in which Brazilian farmers purchase more of their
fertilizer needs in the second half of the year closer to when they
plant their crops. Bunge's volumes also benefited from market share
gains in some regions of Brazil. Results included $60 million of
net foreign exchange gains resulting from the appreciation of the
Brazilian real on U.S. dollar-denominated financing of working
capital. Some offsetting losses to these gains were realized during
the quarter as lower gross profit on sales. Noncontrolling interest
(previously referred to as minority interest) was a loss in the
quarter due to lower results at Fosfertil. Edible Oil Products
Results were higher in most regions of the world with our
businesses in Europe and North America showing the strongest
improvement. Milling Products Higher corn milling volume was more
than offset by lower margins in wheat milling, which suffered from
increased competition. Financial Costs Interest expense decreased
in the quarter due to lower average debt levels, primarily
resulting from the drop in prices of agricultural commodity
inventories which led to lower average working capital needs, as
well as use of a portion of the net proceeds raised from the common
share offering in August to repay indebtedness. Income Taxes For
the quarter, Bunge reported an income tax benefit of $97 million
which resulted primarily from the combination of losses in our
Brazilian fertilizer business that significantly altered our
expected earnings mix among jurisdictions, and a net benefit of
approximately $25 million from several discrete items, including
the reversal of a valuation allowance at one of our European
subsidiaries and the receipt of a favorable ruling in Brazil
regarding an uncertain tax position which had been accrued in prior
periods. For the nine months ended September 30, 2009, Bunge had an
income tax benefit of $52 million compared to income tax expense of
$459 million for the same period in 2008. The difference was
primarily due to significantly lower pre-tax income in 2009, as
well as the effects of the change in earnings mix and discrete
items mentioned above. Cash Flow Cash provided by operating
activities in the third quarter of 2009 was $1,207 million compared
to cash provided by operating activities of $2,210 million in the
same period last year. For the nine months ended September 30,
2009, cash used by operating activities was $547 million compared
to cash provided by operating activities in the same period last
year of $1,727 million. The negative cash flow in 2009 primarily
reflects lower accounts payable in fertilizer. Outlook Jacqualyn
Fouse, Chief Financial Officer, stated, "Agribusiness should post a
strong finish to the year and food and ingredients should continue
its recovery. The large U.S. harvest will provide our operations
with an ample supply of crops to originate, process and distribute
to customers around the world. We expect northern hemisphere
agribusiness margins to remain good due to the supply shortage in
South America. However, fertilizer results will be weaker than we
previously expected due to a softer pricing environment both
internationally and in Brazil. In consideration of this fertilizer
outlook, we have revised our 2009 full-year earnings guidance from
$4.90 to $5.40 per share which was based on an estimated weighted
average of approximately 138 million shares outstanding to $3.10 to
$3.50 per share based on an estimated weighted average of
approximately 128 million shares outstanding. This revised guidance
is based on our expectation that our convertible preference shares
will not be dilutive under the 'if-converted' EPS calculation
method and assumes an income tax benefit for the year in the range
of 14% to 18%. For comparative purposes, if the convertible
preferred shares were expected to be dilutive, EPS would be
calculated based on net income attributable to Bunge in the range
of $475 to $525 million (which is before deducting $78 million of
preferred dividends) and an estimated weighted average of
approximately 143 million shares outstanding." Conference Call and
Webcast Details Bunge Limited's management will host a conference
call at 10:00 a.m. EDT on October 22 to discuss the company's
results. Additionally, a slide presentation to accompany the
discussion of the third quarter financial results can be found in
the "Investor Information" section of our Web site, www.Bunge.com,
under "Investor Presentations." To listen to the conference call,
please dial (877) 852-6580. If you are located outside of the
United States or Canada, dial (719) 325-4838. Please dial in five
to 10 minutes before the scheduled start time. When prompted, enter
confirmation code 4510637. The conference call will also be
available live on the company's Web site at www.Bunge.com. To
access the webcast, click the "Investor Information" link on the
Bunge homepage, then select "Webcasts and News Alerts". Click on
the link for the "Q3 2009 Bunge Limited Conference Call," and
follow the prompts to join the call. Please go to the Web site at
least 15 minutes prior to the call to register and to download and
install any necessary audio software. For those who cannot listen
to the live broadcast, a replay of the call will be available later
in the day on October 22, 2009, and continuing through November 21,
2009. To listen to the replay, please dial (888) 203-1112 or, if
located outside of the United States or Canada, dial (719)
457-0820. When prompted, enter confirmation code 4510637. A
rebroadcast of the conference call will also be available on the
company's Web site. To locate the rebroadcast, click on the
"Investor Information" link on the Bunge homepage then select
"Audio Archives". Follow the prompts to access the replay. About
Bunge Limited Bunge Limited (www.Bunge.com, NYSE: BG) is a leading
global agribusiness and food company founded in 1818 and
headquartered in White Plains, New York. Bunge's 25,000 employees
in over 30 countries enhance lives by improving the global
agribusiness and food production chain. The company supplies
fertilizer to farmers; originates, transports and processes
oilseeds, grains and other agricultural commodities; produces food
products for commercial customers and consumers; and supplies raw
materials and services to the biofuels industry. 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;
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, income from
operations before income tax, net income attributable to Bunge and
earnings per share for the quarter and nine months ended September
30, 2009 and 2008. Income From Total Operations Net Income Earnings
Segment Before Attributable Per Share EBIT Income Tax to Bunge
Diluted ------- ----------- ------------ --------- (In millions,
except per share data) Quarter Ended September 30: 2009 2008 2009
2008 2009 2008 2009 2008 ---- ---- ---- ---- ---- ---- ---- ----
Transactional tax credit (1) $- $62 $- $62 $- $41 $- $0.30 -- ---
-- --- -- --- -- ----- Total $- $62 $- $62 $- $41 $- $0.30 == ===
== === == === == ===== Income From Total Operations Net Income
Earnings Segment Before Attributable Per Share EBIT Income Tax to
Bunge Diluted ------- ----------- ------------ --------- (In
millions, except per share data) Nine Months Ended September 30:
2009 2008 2009 2008 2009 2008 2009 2008 ---- ---- ---- ---- ----
---- ---- ---- Transactional tax credit (1) $32 $190 $32 $190 $21
$131 $0.16 $0.95 Gain on sale of land (2) - 14 - 14 - 9 - 0.07 --
-- -- -- -- -- -- ---- Total $32 $204 $32 $204 $21 $140 $0.16 $1.02
=== ==== === ==== === ==== ===== ===== (1) In the second quarter of
2009, Bunge reversed a $32 million provision recorded in selling,
general and administrative expenses, related to transactional taxes
in its fertilizer segment, which resulted from new Brazilian
legislation. As a result of favorable rulings in 2008 related to
certain transactional taxes in Brazil that were accrued and paid in
past years, Bunge recorded $117 million and $11 million in cost of
goods sold in its agribusiness and its milling products segments,
respectively, pertaining to transactional tax credits on sales and
$60 million and $2 million in selling, general and administrative
expenses in its agribusiness and edible oil products segment,
respectively, pertaining to transactional tax credits on financial
transactions. (2) In the second quarter of 2008, Bunge recorded a
gain on sale of land in its edible oil products segment.
CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share
data and percentages) (Unaudited) Quarter Nine Months Ended Ended
September 30, September 30, ------------- Percent -------------
Percent 2009 2008 Change 2009 2008 Change ---- ---- ------ ----
---- ------ Net sales $11,298 $14,797 (24)% $31,490 $41,631 (24)%
Cost of goods sold (10,955) (13,588) (19)% (30,600) (38,104) (20)%
------- ------- ------- ------- Gross profit 343 1,209 (72)% 890
3,527 (75)% Selling, general and administrative expenses (349)
(382) (9)% (952) (1,244) (23)% Interest income 20 57 (65)% 96 159
(40)% Interest expense (Note 1) (79) (97) (19)% (212) (285) (26)%
Foreign exchange gain (loss) 169 (471) 470 (206) Other income
(expense) net (4) (1) (12) (13) -- -- --- --- Income from
operations before income tax 100 315 (68)% 280 1,938 (86)% Income
tax benefit (expense) 97 (5) 52 (459) -- -- -- ---- Income from
operations after income tax 197 310 (36)% 332 1,479 (78)% Equity in
earnings of affiliates - 14 (100)% 11 27 (59)% -- -- -- -- Net
income 197 324 (39)% 343 1,506 (77)% Net loss (income) attributable
to noncontrolling interest 35 (90) 7 (232) -- --- -- ---- Net
income attributable to Bunge 232 234 (1)% 350 1,274 (73)%
Convertible preference share dividends - (19) (39) (58) -- --- ---
--- Net income available to Bunge common shareholders $232 $215 8%
$311 $1,216 (74)% ==== ==== ==== ====== Earnings per common share -
diluted (Note 2): Earnings to Bunge common shareholders $1.62 $1.70
(5)% $2.48 $9.26 (73)% ===== ===== ===== ===== Weighted-average
common shares outstanding-diluted (Note 2) 143,540,130 137,839,070
132,501,800 137,634,556 =========== =========== ===========
=========== Note 1: Includes interest expense on readily marketable
inventories of $34 million and $30 million for the quarter ended
September 30, 2009 and 2008, respectively, and $62 million and $93
million for the nine months ended September 30, 2009 and 2008,
respectively. Note 2: Weighted-average common shares
outstanding-diluted for the quarter ended September 30, 2009
includes the dilutive effect of approximately 14.6 million weighted
average common shares that would be issuable upon conversion of
Bunge's convertible preference shares because the effect of the
conversion would have been dilutive. Weighted-average common shares
outstanding-diluted for the nine months ended September 30, 2009
includes the dilutive effect of approximately 7.5 million weighted
average common shares that would be issuable upon conversion of
Bunge's convertible perpetual preference shares because the effect
of the conversion would have been dilutive. Weighted-average common
shares outstanding-diluted for the quarter and nine months ended
September 30, 2008 includes the dilutive effect of approximately
14.6 million weighted average common shares that would be issuable
upon conversion of Bunge's convertible preference shares because
the effect of the conversion would have been dilutive. CONSOLIDATED
SEGMENT INFORMATION (In millions, except volumes and percentages)
(Unaudited) Set forth below is a summary of certain items in our
consolidated statements of income and volumes by reportable
segment. Quarter Nine Months Ended Ended September 30, September
30, ------------- Percent ------------- Percent 2009 2008 Change
2009 2008 Change ---- ---- ------ ---- ---- ------ Volumes (in
thousands of metric tons): Agribusiness 30,493 29,683 3% 91,723
86,501 6% Fertilizer 3,814 3,082 24% 8,301 8,748 (5)% Edible oil
products 1,465 1,452 1% 4,241 4,281 (1)% Milling products 1,071
1,004 7% 3,334 2,972 12% ----- ----- ----- ----- Total 36,843
35,221 5% 107,599 102,502 5% ====== ====== ======= ======= Net
sales: Agribusiness $8,133 $10,152 (20)% $23,070 $28,894 (20)%
Fertilizer 1,190 1,899 (37)% 2,730 4,875 (44)% Edible oil products
1,572 2,232 (30)% 4,534 6,411 (29)% Milling products 403 514 (22)%
1,156 1,451 (20)% --- --- ----- ----- Total $11,298 $14,797 (24)%
$31,490 $41,631 (24)% ======= ======= ======= ======= Gross profit:
Agribusiness $353 $534 (34)% $1,071 $1,743 (39)% Fertilizer (162)
543 (130)% (567) 1,314 (143)% Edible oil products 112 84 33% 274
306 (10)% Milling products 40 48 (17)% 112 164 (32)% -- -- --- ---
Total $343 $1,209 (72)% $890 $3,527 (75)% ==== ====== ==== ======
Selling, general and administrative expenses: Agribusiness $(163)
$(174) (6)% $(517) $(641) (19)% Fertilizer (76) (78) (3)% (151)
(243) (38)% Edible oil products (78) (102) (24)% (211) (278) (24)%
Milling products (32) (28) 14% (73) (82) (11)% ---- ---- ---- ----
Total $(349) $(382) (9)% $(952) $(1,244) (23)% ===== ===== =====
======== Foreign exchange gain (loss): Agribusiness $108 $(192)
$226 $(33) Fertilizer 60 (270) 246 (169) Edible oil products 2 (9)
(1) (4) Milling products (1) - (1) - --- --- --- --- Total $169
$(471) $470 $(206) ==== ===== ==== ===== Equity in earnings of
affiliates: Agribusiness $(1) $7 (114)% $(7) $9 (178)% Fertilizer -
2 (100)% 1 6 (83)% Edible oil products - 4 (100)% 14 9 56% Milling
products 1 1 -% 3 3 -% -- -- -- -- Total $- $14 (100)% $11 $27
(59)% == === === === Noncontrolling interest: Agribusiness $(2)
$(6) $(12) $(23) Fertilizer 54 (112) 36 (294) Edible oil products
(2) (4) (6) (7) Milling products - - - - -- -- -- -- Total $50
$(122) $18 $(324) === ===== === ===== Other income/(expense):
Agribusiness $(1) $1 $(1) $(20) Fertilizer (3) (1) (7) (4) Edible
oil products 1 (2) (3) 10 Milling products (1) 1 (1) 1 --- -- ---
-- Total $(4) $(1) $(12) $(13) === === ==== ==== Segment earnings
before interest and tax: Agribusiness $294 $170 73% $760 $1,035
(27)% Fertilizer (127) 84 (251)% (442) 610 (172)% Edible oil
products 35 (29) 221% 67 36 86% Milling products 7 22 (68)% 40 86
(53)% -- -- -- -- Total (Note 1) $209 $247 (15)% $425 $1,767 (76)%
==== ==== ==== ====== Reconciliation of total segment earnings
before interest and tax: Total segment earnings before interest and
tax $209 $247 $425 $1,767 Interest income 20 57 96 159 Interest
expense (79) (97) (212) (285) Income tax benefit (expense) 97 (5)
52 (459) Noncontrolling interest share of interest and tax (15) 32
(11) 92 ---- -- ---- -- Net income attributable to Bunge $232 $234
$350 $1,274 ==== ==== ==== ====== Depreciation, depletion and
amortization: Agribusiness $(50) $(48) 4% $(141) $(144) (2)%
Fertilizer (40) (44) (9)% (106) (130) (18)% Edible oil products
(18) (20) (10)% (52) (56) (7)% Milling products (11) (5) 120% (20)
(14) 43% ---- --- ---- ---- Total $(119) $(117) 2% $(319) $(344)
(7)% ===== ===== ===== ===== Note 1: Total segment earnings before
interest and tax ("EBIT") is a non- GAAP measure and is not
intended to replace net income attributable to Bunge, the most
directly comparable GAAP measure. The information required by
Regulation G under the Securities Exchange Act of 1934, including
the reconciliation to net income attributable to Bunge, is included
under the caption "Reconciliation of Non-GAAP Measures." CONDENSED
CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) September 30,
December 31, September 30, 2009 2008 2008 ---- ---- ---- ASSETS
Current assets: Cash and cash equivalents $1,101 $1,004 $1,494
Trade accounts receivable 2,381 2,350 3,536 Inventories (1) 4,835
5,653 6,995 Deferred income taxes 296 268 430 Other current assets
(2) 3,893 3,901 4,827 ----- ----- ----- Total current assets 12,506
13,176 17,282 Property, plant and equipment, net 5,051 3,969 4,298
Goodwill 377 325 366 Other intangible assets, net 152 107 115
Investments in affiliates 801 761 779 Deferred income taxes 1,150
864 771 Other non-current assets 1,823 1,028 1,029 ----- -----
----- Total assets $21,860 $20,230 $24,640 ======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Short-term debt $430 $473 $765 Current portion of long-term debt 23
78 567 Trade accounts payable 3,106 4,158 5,634 Deferred income
taxes 106 104 225 Other current liabilities 3,021 3,261 3,873 -----
----- ----- Total current liabilities 6,686 8,074 11,064 Long-term
debt 3,625 3,032 2,961 Deferred income taxes 164 132 164 Other
non-current liabilities 992 864 981 Total Bunge shareholders'
equity 9,522 7,436 8,710 Noncontrolling interest 871 692 760 ---
--- --- Total equity 10,393 8,128 9,470 ------ ----- ----- Total
liabilities and shareholders' equity $21,860 $20,230 $24,640
======= ======= ======= Note 1: Includes readily marketable
inventories of $2,568 million, $2,741 million and $3,142 million at
September 30, 2009, December 31, 2008 and September 30, 2008,
respectively. Note 2: Includes marketable securities of $7 million,
$14 million and $43 million at September 30, 2009, December 31,
2008 and September 30, 2008, respectively. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Nine Months
Ended September 30, -------------- 2009 2008 ---- ---- OPERATING
ACTIVITIES Net income $343 $1,506 Adjustments to reconcile net
income to cash (used for) provided by operating activities: Foreign
exchange gain on debt (594) 90 Impairment of assets - 6 Bad debt
expense 41 68 Depreciation, depletion and amortization 319 344
Stock-based compensation expense 16 56 Recoverable taxes provision
41 (19) Deferred income taxes (163) (22) Equity in earnings of
affiliates (11) (27) Changes in operating assets and liabilities,
excluding the effects of acquisitions: Trade accounts receivable
152 (1,255) Inventories 1,619 (1,453) Prepaid commodity purchase
contracts 19 268 Secured advances to suppliers 220 (5) Trade
accounts payable (1,544) 1,997 Advances on sales 23 171 Unrealized
net gain/loss on derivative contracts (145) (322) Margin deposits
(348) 44 Accrued liabilities 4 190 Other-net (539) 90 ---- -- Cash
(used for) provided by operating activities (547) 1,727 INVESTING
ACTIVITIES Payments made for capital expenditures (596) (594)
Investments in affiliates (6) (68) Acquisitions of businesses (net
of cash acquired) (22) (61) Related party loans (19) 30 Proceeds
from disposal of property, plant and equipment 39 36 Proceeds from
investments 92 2 -- - Cash used for investing activities (512)
(655) FINANCING ACTIVITIES Net proceeds/(repayments) in short-term
debt with maturities of 90 days or less (198) (586) Proceeds from
short-term debt with maturities greater than 90 days 986 1,209
Repayments of short-term debt with maturities greater than 90 days
(891) (405) Proceeds from long-term debt 2,885 1,757 Repayment of
long-term debt (2,359) (2,205) Proceeds from sale of common shares
762 7 Dividends paid to preference shareholders (58) (61) Dividends
paid to common shareholders (74) (64) Dividends paid to
noncontrolling interest (4) (153) Other 20 38 -- -- Cash provided
by (used for) financing activities 1,069 (463) Effect of exchange
rate changes on cash and cash equivalents 87 (96) -- --- Net
increase in cash and cash equivalents 97 513 Cash and cash
equivalents, beginning of period 1,004 981 ----- --- Cash and cash
equivalents, end of period $1,101 $1,494 ====== ======
Reconciliation of Non-GAAP Measures This earnings release contains
total segment earnings before interest and tax ("EBIT"), which is
"non-GAAP financial measures" as this term is defined in Regulation
G of the Securities Exchange Act of 1934. In accordance with
Regulation G, Bunge has reconciled this non-GAAP financial measure
to the most directly comparable U.S. GAAP measures. Total segment
earnings before interest and tax Total segment EBIT is consolidated
net income attributable to Bunge excluding interest income and
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 believes EBIT is a useful measure of
its segments' operating profitability, since the measure reflects
equity in earnings of affiliates and minority interest and excludes
income tax. Income tax is excluded as management believes income
tax is not material to the operating performance of its segments.
Interest income and expense have become less meaningful to the
segments' operating activities as Bunge is financing more of its
working capital with equity rather than debt. In addition, EBIT is
a financial measure that is widely used by analysts and investors
in Bunge's industries. Total segment EBIT is not a measure of
consolidated operating results under U.S. GAAP and should not be
considered as an alternative to net income or any other measure of
consolidated operating results under U.S. GAAP. Below is a
reconciliation of total segment EBIT to net income attributable to
Bunge: Quarter Ended Nine Months Ended September 30, September 30,
------------- ------------- (In millions) 2009 2008 2009 2008
------------- ---- ---- ---- ---- Total segment EBIT $209 $247 $425
$1,767 Interest income 20 57 96 159 Interest expense (79) (97)
(212) (285) Income tax benefit (expense) 97 (5) 52 (459)
Noncontrolling interest share of interest and tax (15) 32 (11) 92
---- -- ---- -- Net income attributable to Bunge $232 $234 $350
$1,274 ==== ==== ==== ====== DATASOURCE: Bunge Limited CONTACT:
Investors, Mark Haden +1-914-684-3398, or , or Media, Susan Burns,
+1-914-684-3246, or , both of Bunge Limited Web Site:
http://www.bunge.com/
Copyright