BUNGE GLOBAL SA WHITE PLAINS, N.Y., July 30, 2015 /PRNewswire/ -- Bunge Limited (NYSE: BG)
-- Total adjusted segment EBIT of $152 million, down $266 million vs. last
year
-- Agribusiness lower due to weak softseed processing and trading &
distribution results
-- Food & Ingredients impacted by market slowdown in Brazil
-- YTD total adjusted segment EBIT of $525 million, up $32 million vs. last
year
-- Combined Agri-Foods rolling 4Q ROIC of 9.6%; 2.6 points over WACC
-- Expect strong 2H in Agribusiness, improvement from 1H in Foods and
combined full year Agri-Foods ROIC of ~10%
Financial Highlights
Quarter Ended Six Months Ended
------------- ----------------
US$ in millions, except per share 6/30/15 6/30/14 6/30/15 6/30/14
data
----
Net sales $10,782 $16,793 $21,588 $30,254
Total segment EBIT (a) $167 $418 $540 $493
Certain gains & (charges) (b) $15 - $15 -
Total segment EBIT, adjusted (a) $152 $418 $525 $493
Agribusiness (c) $134 $311 $464 $390
Oilseeds $63 $229 $305 $306
Grains $71 $82 $159 $84
Food & Ingredients (d) $29 $90 $101 $144
Sugar & Bioenergy $(12) $6 $(35) $(58)
Fertilizer $1 $11 $(5) $17
Net income (loss) per common share from $0.50 $1.71 $2.11 $1.58
continuing operations-diluted (a)
--------------------------------
Net income (loss) per common share from $0.51 $1.76 $2.12 $1.67
continuing operations-diluted, adjusted (a)
------------------------------------------
(a) Total segment earnings before interest
and tax ("EBIT"); 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. See
Additional Financial Information for
detail.
(c) See footnote 8 of Additional Financial
Information for a description of the
Oilseeds and Grains businesses in
Bunge's Agribusiness segment.
(d) Includes Edible Oil Products and Milling
Products segments.
Overview
Soren Schroder, Bunge's Chief Executive Officer, stated, "Conditions in the second quarter were more challenging than expected. In Agribusiness, we experienced weak softseed margins, slow farmer selling outside of Brazil and a difficult trading & distribution environment. In Food & Ingredients, margins and volumes came under dramatic pressure in our Brazilian businesses, especially Edible Oils, as consumers adjusted to an environment of increasing unemployment, inflation and currency devaluation.
"Looking ahead to the second half of the year, we expect full-year Agribusiness EBIT to exceed $1 billion. Demand for soy meal and soy oil remains solid, supporting a promising soy crush outlook. The Brazilian safrinha corn crop is large and current local prices are encouraging famers to sell. Based on present crop conditions in the Northern Hemisphere there should be ample supplies to drive high asset utilizations and an expansion in global trade. Food & Ingredients will show improvement from the first half of the year, but will fall short of last year's second half. Sugar & Bioenergy is moving into its seasonally stronger period when sugar and ethanol production increases, and based on current strong domestic ethanol consumption in Brazil, we have increased confidence that we will end the year EBIT and cash flow positive.
"We also continue to make strides in driving greater efficiency through our performance improvement initiatives, having generated approximately $50 million of year-to-date benefits. The rolling four quarter ROIC for our core Agribusiness and Food operations is 9.6%, continuing to track well above our 7% cost of capital, and we expect returns of approximately 10% for the full year."
Second Quarter Results
Agribusiness
Significantly lower results in softseed processing and trading & distribution were the primary drivers of lower performance in the quarter. Soy processing results were comparable with last year.
In Oilseeds, Canadian canola processing margins were significantly weaker than an exceptionally strong prior-year period. European softseed margins were down from last year driven by the combination of slow farmer selling and decreased vegetable oil demand.
In soy processing, results were higher in Asia, which recovered from depressed levels seen for most of 2014, and in the U.S., where utilizations and margins exceeded last year due to strong domestic and export demand. Offsetting these improvements were lower results in Argentina and Brazil. While margins were good in both regions, they were not as strong as last year, and volumes in Argentina were impacted by strikes during May which delayed the start of peak season crushing. Oilseed trading & distribution results were significantly lower in the quarter due to lower margins and volumes.
In Grains, results in grain origination were slightly lower as improved performance in Brazil, which benefited from a pick-up in farmer selling during the last half of June, were more than offset by weaker margins and volumes in North America and Argentina. Results were lower in grain trading & distribution due to weaker margins and volumes and less effective risk management strategies during the quarter. Results in ocean freight were higher due to good execution and the reversal of approximately $10 million of mark-to-market losses on bunker fuel hedges that were incurred in the fourth quarter of last year.
Edible Oil Products
Lower results in the quarter were primarily due to market challenges in our Brazilian operation, which experienced a significant decrease in margins and lower volumes as consumers reduced spending and traded down to lower value products in response to the recessionary economy. Results in our European operation were also down in the quarter largely due to the weak economic environment in certain countries, which more than offset the savings from our performance improvement initiatives. In the U.S., excluding a $15 million charge related to restructuring our footprint, results were higher than last year driven by higher volumes and margins in both our refining and packaging operations.
Milling Products
The decrease in performance in the quarter was primarily due to lower results in our Brazilian wheat and U.S. corn milling operations. In Brazil, we experienced a sharp reduction in volumes as customers, particularly food service, pulled back demand in response to the depressed economic environment. In U.S. corn milling, slightly higher margins were more than offset by lower volumes as demand from ready-to-eat cereal and brewing industries remained soft. Adjusting for a $4 million mark-to-market impact related to hedges on wheat inventory, which will reverse later in the year, results in our Mexican wheat milling operation were comparable to last year. Results in rice milling were also similar to the prior year.
Sugar & Bioenergy
The second quarter is typically a weak period for sugarcane milling operations as it marks the beginning of the harvest in the Center-South of Brazil when the sugar content of the cane is at its lowest level. Consequently, mills produce less sugar and ethanol per unit of sugarcane milled than they will in the second half of the year when the yield increases.
Sugarcane milling results were slightly lower than breakeven and last year, as higher sugar prices in Brazilian reais were offset by lower domestic ethanol and cogen prices. Trading & distribution performance was down slightly from last year, and results in our biofuel joint ventures were lower due to the less favorable U.S. ethanol production environment. Results in the quarter were impacted by a $7 million loss from our Brazilian renewable oils joint venture.
Fertilizer
Higher results in our Argentine fertilizer business were more than offset by lower results in our Brazilian port operation, which was impacted by lower volume and currency translation.
Cash Flow
Cash used by operations in the six months ended June 30, 2015 was $300 million compared to cash used of $791 million in the same period last year. The year-over-year variance primarily reflects higher earnings and a reduction in working capital primarily due to lower commodity prices.
Income Taxes
Excluding approximately $10 million of certain discrete tax items, the effective tax rate for the six months ended June 30, 2015 was approximately 26%.
Outlook
Drew Burke, Chief Financial Officer, stated, "We expect a strong second half in Agribusiness with full year segment results exceeding $1 billion. In Oilseeds, margins are good in South America and in the U.S., solid underlying demand for soymeal and soyoil should continue to support a favorable crushing environment. While China soy crush margins have come down from the levels seen for most of the second quarter, they are well above where they were for most of last year. European sunseed crush margins should improve with the arrival of harvest; however, rapeseed margins may continue to be hampered by smaller production and low vegetable oil prices.
"In Grains, the Brazilian safrinha corn harvest is underway and with the recent devaluation of the Brazilian real, farmer selling has picked up for both corn and soybeans. Farmers in the U.S. and Black Sea have planted large crops, and based on current growing conditions should provide ample supplies to drive high asset utilizations. While global grain supply and demand should be in relative balance, the reduced production in certain Northern Hemisphere regions could provide pockets of supply dislocation opportunities.
"In Food & Ingredients, we expect improvement from first half levels. In Europe, margins should improve as new oilseed crops reset raw material costs. In the U.S., we will continue to leverage the benefits from our performance improvement programs, and in Brazil, we are taking additional cost saving measures to address current market conditions. While our Brazilian food business will likely continue to face near term challenges, we expect to see improvement as we move through the year.
"In Sugar & Bioenergy, our sugarcane crop continues to develop well with favorable weather. Based on current strong domestic demand for ethanol in Brazil, we are confident that we will finish the year profitable and free cash flow positive."
Conference Call and Webcast Details
Bunge Limited's management will host a conference call at 10:00 a.m. EDT on July 30, 2015 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 40130348. 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 "Q2 2015 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 July 30, 2015, continuing through August 29, 2015. 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 40130348. 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 continuing operations for total segment EBIT, net income (loss) attributable to Bunge and earnings per share for the quarters ended June 30, 2015 and 2014.
Net Income (loss) Earnings
Total Segment Attributable to Per Share
(In millions, except per share data) EBIT Bunge Diluted
Quarter Ended June 30: 2015 2014 2015 2014 2015 2014
---------------------- ---- ---- ---- ---- ---- ----
Continuing operations:
Agribusiness:
Reversal of export tax contingency (1) $30 $ - $19 $ - $0.13 $ -
Edible Oil Products:
Impairment of packaged oil facility (2) (15) - (10) - (0.07) -
Income Tax:
Income tax benefits (charges) (3) - - (10) (8) (0.07) (0.05)
-------------------------------- --- --- --- --- ----- -----
Total $15 $ - $(1) $(8) $(0.01) $(0.05)
----- --- --- --- --- --- ------ ------
Net Income (loss) Earnings
Total Segment Attributable to Per Share
(In millions, except per share data) EBIT Bunge Diluted
Six Months Ended June 30: 2015 2014 2015 2014 2015 2014
------------------------- ---- ---- ---- ---- ---- ----
Continuing operations:
Agribusiness:
Reversal of export tax contingency (1) $30 $ - $19 $ - $0.13 $ -
Edible Oil Products:
Impairment of packaged oil facility (2) (15) - (10) - (0.07) -
Income Tax:
Income tax benefits (charges) (3) - - (10) (13) (0.07) (0.09)
-------------------------------- --- --- --- --- ----- -----
Total $15 $ - $(1) $(13) $(0.01) $(0.09)
----- --- --- --- --- ---- ------ ------
Consolidated Earnings Data (Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
-------- --------
(In millions) 2015 2014 2015 2014
------------ ---- ---- ---- ----
Net sales $10,782 $16,793 $21,588 $30,254
Cost of goods sold (10,247) (16,000) (20,343) (29,047)
------------------ ------- ------- ------- -------
Gross profit 535 793 1,245 1,207
Selling, general and administrative expenses (361) (392) (692) (758)
Foreign exchange gains (losses) 16 14 9 36
Other income (expense)-net (9) 1 (8) 7
EBIT attributable to noncontrolling interest (14) 2 (14) 1
-------------------------------------------- --- --- --- ---
Total Segment EBIT (4) 167 418 540 493
--------------------- --- --- --- ---
Interest income 13 33 24 52
Interest expense (57) (76) (110) (155)
Income tax (expense) benefit (3) (45) (111) (130) (141)
Noncontrolling interest share of interest and tax 7 9 10 16
------------------------------------------------- --- --- --- ---
Income from continuing operations, net of tax 85 273 334 265
--------------------------------------------- --- --- --- ---
Income (loss) from discontinued operations, net of tax 1 15 15 10
------------------------------------------------------ --- --- --- ---
Net income attributable to Bunge (5) 86 288 349 275
----------------------------------- --- --- --- ---
Convertible preference share dividends and other obligations (14) (16) (28) (30)
------------------------------------------------------------ --- --- --- ---
Net income available to Bunge common shareholders $72 $272 $321 $245
------------------------------------------------- --- ---- ---- ----
Net income (loss) per common share diluted attributable
to Bunge common shareholders (6):
Continuing operations $0.50 $1.71 $2.11 $1.58
Discontinued operations - 0.10 0.10 0.07
----------------------- --- ---- ---- ----
Net income (loss) per common share - diluted $0.50 $1.81 $2.21 $1.65
-------------------------------------------- ----- ----- ----- -----
Weighted-average common shares outstanding - diluted 145 155 145 148
---------------------------------------------------- --- --- --- ---
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 Six Months Ended
June 30, June 30,
-------- --------
(In millions, except volumes) 2015 2014 2015 2014
---------------------------- ---- ---- ---- ----
Volumes (in thousands of metric tons):
Agribusiness 32,802 35,004 64,046 66,678
Edible Oil Products 1,668 1,716 3,273 3,329
Milling Products 992 1,196 2,072 2,348
Sugar & Bioenergy 2,780 2,134 4,996 4,074
Fertilizer 216 221 333 358
---------- --- --- --- ---
Net sales:
Agribusiness $7,744 $12,855 $15,655 $22,948
Edible Oil Products 1,667 2,099 3,315 4,027
Milling Products 409 553 855 1,088
Sugar & Bioenergy 881 1,186 1,628 2,030
Fertilizer 81 100 135 161
---------- --- --- --- ---
Total $10,782 $16,793 $21,588 $30,254
----- ------- ------- ------- -------
Gross profit:
Agribusiness $360 $522 $866 $775
Edible Oil Products 85 143 199 264
Milling Products 57 88 127 157
Sugar & Bioenergy 25 26 46 (10)
Fertilizer 8 14 7 21
---------- --- --- --- ---
Total $535 $793 $1,245 $1,207
----- ---- ---- ------ ------
Selling, general and administrative expenses:
Agribusiness $(201) $(214) $(385) $(406)
Edible Oil Products (89) (96) (170) (195)
Milling Products (34) (42) (65) (79)
Sugar & Bioenergy (30) (37) (60) (76)
Fertilizer (7) (3) (12) (2)
---------- --- --- --- ---
Total $(361) $(392) $(692) $(758)
----- ----- ----- ----- -----
Foreign exchange gain (loss):
Agribusiness $26 $3 $24 $19
Edible Oil Products (1) (1) 4 -
Milling Products (2) - (4) -
Sugar & Bioenergy (7) 13 (15) 18
Fertilizer - (1) - (1)
---------- --- --- --- ---
Total $16 $14 $9 $36
----- --- --- --- ---
Segment earnings before interest and tax:
Agribusiness $164 $311 $494 $390
Edible Oil Products (6) 46 30 68
Milling Products 20 44 56 76
Sugar & Bioenergy (12) 6 (35) (58)
Fertilizer 1 11 (5) 17
---------- --- --- --- ---
Total (4) $167 $418 $540 $493
-------- ---- ---- ---- ----
Condensed Consolidated Balance Sheets (Unaudited)
June 30, December 31,
-------- -------------
(In millions) 2015 2014
------------ ---- ----
Assets
Cash and cash
equivalents $426 $362
Time deposits
under trade
structured
finance program 241 1,343
Trade accounts
receivable, net 1,933 1,840
Inventories (7) 5,443 5,554
Other current
assets 3,775 3,982
------------- ----- -----
Total current
assets 11,818 13,081
------------- ------ ------
Property, plant
and equipment,
net 5,134 5,626
Goodwill and
other
intangible
assets, net 577 605
Investments in
affiliates 284 294
Other non-
current assets 1,616 1,826
Total assets $19,429 $21,432
------------ ------- -------
Liabilities and
Equity
Short-term debt $1,201 $594
Current portion
of long-term
debt 908 408
Letter of credit
obligations
under trade
structured
finance program 241 1,343
Trade accounts
payable 3,384 3,248
Other current
liabilities 2,487 3,111
------------- ----- -----
Total current
liabilities 8,221 8,704
------------- ----- -----
Long-term debt 2,496 2,855
Other non-
current
liabilities 1,046 1,146
Total
liabilities 11,763 12,705
------------ ------ ------
Redeemable
noncontrolling
interest 36 37
Total equity 7,630 8,690
Total
liabilities and
equity $19,429 $21,432
---------------- ------- -------
Condensed Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended
June 30,
---------
(In millions) 2015 2014
------------ ---- ----
Operating Activities
Net income (5) $353 $258
Adjustments to reconcile net income
(loss) to cash provided by (used for)
operating activities:
Impairment charges 21 4
Foreign exchange loss (gain) on debt (182) 62
Depreciation, depletion and amortization 267 286
Other, net 78 (18)
Changes in operating assets and
liabilities, excluding the effects of
acquisitions:
Trade accounts receivable, net (192) (835)
Inventories (125) (298)
Prepayments and advances to suppliers (118) 68
Advances on sales (143) (94)
Net unrealized gain/loss on derivative
contracts (198) (9)
Margin deposits (118) 73
Trade accounts payable and accrued
liabilities 215 (219)
Other, net (158) (69)
---------- ---- ---
Cash provided by (used for) operating
activities (300) (791)
------------------------------------- ---- ----
Investing Activities
Payments made for capital expenditures (222) (351)
Acquisitions of businesses (net of cash
acquired) (52) (12)
Proceeds from sales of investments 199 225
Payments for investments (134) (112)
Payments for investments in affiliates (17) (28)
Other, net - 24
---------- --- ---
Cash provided by (used for) investing
activities (226) (254)
------------------------------------- ---- ----
Financing Activities
Net borrowings (repayments) of short-
term debt 652 727
Net proceeds (repayments) of long-term
debt 307 408
Proceeds from sales of common shares 25 13
Repurchases of common shares (200) (200)
Dividends paid (116) (105)
Other, net (17) (17)
---------- --- ---
Cash provided by (used for) financing
activities 651 826
------------------------------------- --- ---
Effect of exchange rate changes on cash
and cash equivalents (61) -
--------------------------------------- --- ---
Net increase (decrease) in cash and cash
equivalents 64 (219)
---------------------------------------- --- ----
Cash and cash equivalents, beginning of
period 362 742
--------------------------------------- --- ---
Cash and cash equivalents, end of period $426 $523
---------------------------------------- ---- ----
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 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 attributable to Bunge:
Quarter Ended Six Months Ended
June 30, June 30,
-------- --------
(In millions) 2015 2014 2015 2014
------------ ---- ---- ---- ----
Total segment EBIT $167 $418 $540 $493
Interest income 13 33 24 52
Interest expense (57) (76) (110) (155)
Income tax expense (45) (111) (130) (141)
Income from discontinued operations, net of tax 1 15 15 10
Noncontrolling interest share of interest and tax 7 9 10 16
------------------------------------------------- --- --- --- ---
Net income attributable to Bunge $86 $288 $349 $275
-------------------------------- --- ---- ---- ----
Earnings per common share-diluted (excluding certain gains & charges and discontinued operations)
Below is a reconciliation of 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 U.S. 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 Six Months Ended
June 30, June 30,
--------- ---------
2015 2014 2015 2014
---- ---- ---- ----
Continuing operations:
Net income (loss) per common share - diluted (excluding
certain gains & charges and discontinued operations) $0.51 $1.76 $2.12 $1.67
Certain gains & charges (see Additional Financial
Information section) (0.01) (0.05) (0.01) (0.09)
Net income (loss) per common share from continuing operations 0.50 1.71 2.11 1.58
---- ---- ---- ----
Discontinued operations - 0.10 0.10 0.07
--- ---- ---- ----
Net income per common share-diluted $0.50 $1.81 $2.21 $1.65
----------------------------------- ----- ----- ----- -----
Notes
Agribusiness:
(1) 2015 EBIT includes a pre-tax
reversal of an export tax
contingency of $30 million
recorded during the quarter
ended June 30, 2015.
Edible Oil Products:
(2) 2015 EBIT includes a pre-tax
impairment charge of $15
million related to the
announced closure of a U.S.
packaged oil plant, recorded
during the quarter ended
June 30, 3015.
Income Tax:
(3) 2015 income tax benefits
(charges) includes charges
of $10 million recorded
during the quarter ended
June 30, 2015, related to
$6 million for uncertain
income tax positions in
North America and South
America and $4 million
related to the
finalization of a tax
audit in Asia.
2014 income tax benefits
(charges) includes charges
of $13 million recorded
during the six months
ended June 30, 2014,
primarily related to $7
million ($2 million in the
second quarter) for an
uncertain income tax
position in North America
and $4 million in the
second quarter related to
the finalization of a tax
audit in Europe.
Notes to the Financial Tables:
(4) See Reconciliation of Non-GAAP
Measures.
(5) A reconciliation of net income
attributable to Bunge is as
follows:
Six Months Ended
June 30,
--------
2015 2014
---- ----
Net income attributable to Bunge $349 $275
EBIT attributable to noncontrolling interest 14 (1)
Noncontrolling interest share of interest and tax (10) (16)
--- ---
Net income $353 $258
==== ====
(6) Approximately 2 million outstanding
stock options and contingently
issuable restricted stock units
were not dilutive and not included
in the weighted-average number of
common shares outstanding for the
three and six months ended June
30, 2015. Approximately 8 million
weighted-average common shares
that are issuable upon conversion
of the convertible preference
shares were not dilutive and not
included in the weighted-average
number of common shares
outstanding for the three and six
months ended June 30, 2015.
Approximately 3 million outstanding
stock options and contingently
issuable restricted stock units
were not dilutive and not included
in the weighted-average number of
common shares outstanding for the
three and six months ended June
30, 2014. Approximately 8 million
weighted-average common shares
that are issuable upon conversion
of the convertible preference
shares were not dilutive and not
included in the weighted-average
number of common shares
outstanding for the six months
ended June 30, 2014.
(7) Includes readily marketable
inventories of $4,411 million and
$4,409 million at June 30, 2015
and December 31, 2014,
respectively. Of these amounts
$3,389 million and $2,937 million,
respectively, are attributable to
merchandising activities.
(8) The Oilseed business included in
our Agribusiness segment consists
of our global activities related
to the crushing of oilseeds
(including soybeans, canola,
rapeseed and sunflower seed) into
protein meals and vegetable oils;
the trading and distribution of
oilseeds and oilseed products; and
biodiesel production, which is
primarily conducted through joint
ventures.
The Grains business included in our
Agribusiness segment consists
primarily of our global grain
origination activities, which
principally conduct the
purchasing, cleaning, drying,
storing and handling of corn,
wheat, barley, rice and oilseeds
at our network of grain elevators;
the logistical services for
distribution of these commodities
to our customer markets through
our port terminals and
transportation assets (including
trucks, railcars, barges and ocean
vessels); and financial services
and activities for customers from
whom we purchase commodities and
other third parties.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bunge-reports-second-quarter-2015-results-300121034.html
SOURCE Bunge Limited
