WHITE PLAINS, N.Y., Feb. 4 /PRNewswire-FirstCall/ -- Bunge Limited
(NYSE: BG) -- Challenging fourth quarter and year in fertilizer --
Agribusiness results were lower than expected in the quarter, but
solid for the year -- Edible oils performed well in the quarter and
had a strong year -- Positive outlook for 2010 Financial Highlights
(In millions, except per share data and percentages) Quarter Ended
Year Ended 12/31/09 12/31/08 % Change 12/31/09 12/31/08 % Change
-------- -------- -------- -------- -------- -------- Volumes
(metric tons) 33,702 35,961 (6)% 141,301 138,463 2% Net sales
$10,436 $10,943 (5)% $41,926 $52,574 (20)% Total segment EBIT (1,2)
$18 $(404) n/m $443 $1,363 (67)% Agribusiness $60 $(86) n/m $820
$949 (14)% Fertilizer $(174) $(289) 40% $(616) $321 n/m Edible Oil
Products $114 $(47) n/m $181 $(11) n/m Milling Products $18 $18 -%
$58 $104 (44)% Net income (loss) attributable to Bunge (2) $11
$(210) n/m $361 $1,064 (66)% (Loss) Earnings per common share-
diluted (2,3) $(0.21) $(1.89) 89% $2.22 $7.73 (71)%
------------------- ------ ------ --- ----- ----- ---- (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's earnings in the fourth quarter
represent a disappointing end to a mixed, and ultimately
challenging, year for Bunge. In 2009, fertilizer generated
significant losses, which stemmed from a difficult market
characterized by high-cost inventory and a weak price environment.
We performed well in agribusiness, however, and produced strong
results in edible oils. "2009 -- along with the first weeks of 2010
-- was also a time of significant strategic moves for Bunge. We
made investments in our core businesses by starting construction on
an export grain elevator in the U.S. and a soybean processing plant
in Vietnam, and by acquiring Raisio's margarine businesses in
Finland and Poland. These additions will enhance our ability to
supply growing markets in Asia and tap into new markets in Europe,
while improving our overall efficiency. And we acquired the
Argentine fertilizer business of Petrobras, which expanded our
product portfolio in Argentina and will strengthen our
relationships with farmers. "We also expanded further in sugar
& bioenergy by entering into agreements to acquire Moema. This
transaction will increase our sugarcane milling capacity to
approximately 20 million tons. As a result, we expect this business
to make a significant contribution to our top and bottom lines in
2010. Lastly, we agreed to sell our fertilizer nutrients assets to
realize the full value of this business today. This sale will also
provide the financial flexibility to redeploy capital in our core
businesses and in complementary value chains, where we see a number
of opportunities. "Of course, divesting our nutrients assets alters
the profile of our fertilizer business. Moving forward, this
business, which serves as a valuable complement to our agribusiness
operations, will continue to make a meaningful, albeit smaller,
contribution to our overall results. We have made changes to the
retail business in Brazil with an aim to reduce risks associated
with price and foreign exchange volatility. We have consolidated
responsibility for raw material sourcing and end product sales, and
we are working to reduce lead times on purchases and adjust our
cost structure. "2010 should be a good year for Bunge, with solid
performances from our businesses. We will continue to focus on our
strategy and seek to generate greater shareholder value by building
on our global asset network and leveraging our commercial,
logistics and risk management expertise across greater volumes and
more products." Fourth Quarter Results Agribusiness While an
improvement over last year, agribusiness results were weaker than
expected in the quarter. Our U.S. and European businesses performed
well, benefiting from the tight soybean supply situation in South
America. However, due to this supply shortage, the whole South
American value chain -- consisting of grain origination, oilseed
processing and distribution -- generated a loss, largely offsetting
these results. Fourth quarter EBIT included charges of $26 million
related to impairments of long-term assets, including real estate
and an equity investment in biodiesel. Fourth quarter EBIT in 2008
included charges of approximately $203 million related to
counterparty risk provisions and impairment and restructuring
costs. Fertilizer The operating loss in the quarter was due to the
continued mismatch between current market prices, which were lower
than expected, and inventory costs, which negatively impacted
margins. Higher volumes in the quarter reflected 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. Edible Oil Products
Compared to a particularly weak prior-year period, results were
higher in all regions of the world primarily due to higher margins
resulting from improved pricing, better product mix and lower
inventory costs. Improved performance in Brazil and the addition of
Raisio to our European business contributed to higher results in
margarine. In the quarter, Bunge reported a gain of $66 million on
the sale of its joint venture interest in Saipol. Milling Products
Higher corn milling results due to increased volumes were offset by
lower wheat milling margins due to increased local competition as a
result of a large Brazilian wheat crop. Financial Costs Interest
expense decreased slightly in the quarter due to lower average debt
levels. Income Taxes For the year ended December 31, 2009, Bunge
reported an income tax benefit of $110 million which resulted
primarily from losses in our Brazilian fertilizer business. This
compares to an income tax expense of $245 million for the same
period in 2008. Cash Flow Cash flow from operating activities in
the fourth quarter of 2009 was $179 million compared to $816
million last year. For the year ended December 31, 2009, cash flow
was negative $368 million compared to a positive $2.5 billion last
year. The negative cash flow in 2009 primarily reflects lower
earnings and accounts payable in fertilizer. Outlook Jacqualyn
Fouse, Chief Financial Officer, stated, "2010 should be a good year
for Bunge. Record harvests in North America and projections for
record soybean production in South America, combined with an
improved global demand picture should result in higher volumes for
agribusiness and food & ingredients. After two lackluster years
of fertilizer demand in Brazil, we expect industry NPK retail
volume to grow 2-4%. And in sugar & bioenergy, we will have the
incremental contribution from the Moema acquisition following the
closing of the transaction. "In consideration of this outlook, our
2010 full-year earnings guidance is $5.75 to $6.25 per share. This
fully diluted per share guidance is based on an estimated weighted
average of 161 million shares outstanding, which includes assumed
dilution relating to our convertible preference shares. This
guidance assumes that Bunge will complete the Moema acquisition in
February and issue approximately 10.8 million common shares for
ownership of five sugarcane mills with total annual capacity of
13.7 million tons. "Additionally, our 2010 guidance includes the
following: -- Depreciation, Depletion and Amortization: $450 to
$500 million. -- Capital Expenditures: $750 to $850 million, of
which approximately 25% will be invested in maintenance, safety and
environmental projects. -- Tax Rate: 18% to 22%. The guidance
provided above excludes the fertilizer nutrients business and the
gain on the sale of that business, which is expected to close in
the second quarter of the year." Conference Call and Webcast
Details Bunge Limited's management will host a conference call at
10:00 a.m. EST on February 4 to discuss the company's results.
Additionally, a slide presentation to accompany the discussion of
the fourth 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) 874-1565. If you are located outside of the United
States or Canada, dial (719) 325-4757. Please dial in five to 10
minutes before the scheduled start time. When prompted, enter
confirmation code 3899649. 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 "Q4 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 February 4, 2010, and continuing through March 6,
2010. 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 3899649. 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, (loss) income from
operations before income tax, net income (loss) attributable to
Bunge and (loss) earnings per share for the quarter and year ended
December 31, 2009 and 2008. (Loss) Income From Net Income (Loss)
Total Operations (Loss) Earnings (In millions, except Segment
Before Attributable Per per share data) EBIT Income Tax to Bunge
Share-Diluted -------------------- ---------- ---------- ----------
------------- Quarter Ended December 31: 2009 2008 2009 2008 2009
2008 2009 2008 ---- ---- ---- ---- ---- ---- ---- ---- Impairment
and restructuring charges (1) $(26) $(20) $(26) $(20) $(20) $(18)
$(0.15) $(0.15) Gain on asset acquisitions / dispositions (2) 66 15
- 15 66 11 0.49 0.09 --- --- --- --- --- --- ---- ---- Total $40
$(5) $(26) $(5) $46 $(7) $0.34 $(0.06) === === ==== === === ===
===== ====== (Loss) Income From Net Income (Loss) Total Operations
(Loss) Earnings (In millions, except Segment Before Attributable
Per per share data) EBIT Income Tax to Bunge Share-Diluted
-------------------- ---------- ---------- ---------- -------------
Year Ended December 31: 2009 2008 2009 2008 2009 2008 2009 2008
---- ---- ---- ---- ---- ---- ---- ---- Transactional tax credit
(3) $32 $190 $32 $190 $21 $131 $0.16 $0.95 Impairment and
restructuring charges (1) (26) (20) (26) (20) (20) (18) (0.16)
(0.13) Gain on asset acquisitions / dispositions (2) 66 29 66 29 66
20 0.52 0.15 --- --- --- --- --- --- ---- ---- Total $72 $199 $72
$199 $67 $133 $0.52 $0.97 === === === === == === ==== ===== (1)
Impairment pretax charges recorded in selling, general and
administrative expenses in the quarter and year ended December 31,
2009 consisted of $10 million, which related to an equity
investment in biodiesel, and $16 million, which related to real
estate, in the agribusiness segment. Impairment and restructuring
pretax charges recorded in cost of goods sold in the quarter and
year ended December 31, 2008 consisted of $18 million in the
agribusiness segment and $2 million in the edible oil products
segment. (2) In the fourth quarter of 2009, Bunge recorded a gain
of $66 million, net of tax of $3 million, in equity in earnings of
affiliates on the sale of its 33.34% interest in Saipol, a joint
venture in its edible oil products segment. In 2008, Bunge recorded
a gain of $14 million on a sale of land in its edible oil products
segment and a gain of $15 million related to the acquisition of
certain sugar assets in its agribusiness segment. (3) 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 related
to certain transactional taxes in Brazil, which were accrued and
paid in past years, in 2008 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. CONSOLIDATED STATEMENTS OF
INCOME (In millions, except per share data and percentages)
(Unaudited) Quarter Ended Year Ended ------------- ----------
December 31, December 31, ------------ Percent ------------ Percent
2009 2008 Change 2009 2008 Change ---- ---- ------ ---- ---- ------
Net sales $10,436 $10,943 (5)% $41,926 $52,574 (20)% Cost of goods
sold (10,122) (10,434) 3% (40,722) (48,538) 16% Gross profit 314
509 (38)% 1,204 4,036 (70)% Selling, general and administrative
expenses (390) (369) (6)% (1,342) (1,613) 17% Interest income 26 55
(53)% 122 214 (43)% Interest expense (Note 1) (71) (76) 7% (283)
(361) 22% Foreign exchange gain (loss) (1) (543) 469 (749) Other
income (expense)-net (13) 23 (25) 10 (Loss) income from operations
before income tax (135) (401) 66% 145 1,537 (91)% Income tax
benefit (expense) 58 214 110 (245) (Loss) income from operations
after income tax (77) (187) 59% 255 1,292 (80)% Equity in earnings
of affiliates 69 7 886% 80 34 135% Net (loss) income (8) (180) 96%
335 1,326 (75)% Net loss (income) attributable to noncontrolling
interest 19 (30) 26 (262) Net income (loss) attributable to Bunge
11 (210) n/m 361 1,064 (66)% Convertible preference share dividends
(39) (20) (78) (78) Net (loss) income available to Bunge common
shareholders $(28) $(230) 88% $283 $986 (71)% (Loss) Earnings per
common share - diluted (Note 2): (Loss) Earnings to Bunge common
shareholders $(0.21) $(1.89) 89% $2.22 $7.73 (71)% Weighted-average
common shares outstanding- diluted (Note 2) 134,084,639 121,627,504
127,669,822 137,591,266 Note 1: Includes interest expense on
readily marketable inventories of $22 million and $19 million for
the quarter ended December 31, 2009 and 2008, respectively, and $84
million and $112 million for the year ended December 31, 2009 and
2008, respectively. Note 2: Weighted-average common shares
outstanding-diluted for the quarter and year ended December 31,
2009 excludes 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 not have been dilutive.
Weighted-average common shares outstanding-diluted for the quarter
ended December 31, 2009 also excludes the dilutive effect of
approximately 2 million outstanding stock options and contingently
issuable restricted stock units because the effect of the
conversion would not have been dilutive. Weighted-average common
shares outstanding- diluted for the quarter and twelve months ended
December 31, 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 Ended Year Ended December 31, December 31,
------------ Percent ------------ Percent 2009 2008 Change 2009
2008 Change ---- ---- ------ ---- ---- ------ Volumes (in thousands
of metric tons): Agribusiness 27,924 31,160 (10)% 119,647 117,661
2% Fertilizer 3,333 2,386 40% 11,634 11,134 4% Edible oil products
1,447 1,455 (1)% 5,688 5,736 (1)% Milling products 998 960 4% 4,332
3,932 10% --- --- ----- ----- Total 33,702 35,961 (6)% 141,301
138,463 2% ====== ====== ======= ======= Net sales: Agribusiness
$7,441 $7,794 (5)% $30,511 $36,688 (17)% Fertilizer 974 985 (1)%
3,704 5,860 (37)% Edible oil products 1,650 1,805 (9)% 6,184 8,216
(25)% Milling products 371 359 3% 1,527 1,810 (16)% --- --- -----
----- Total $10,436 $10,943 (5)% $41,926 $52,574 (20)% =======
======= ======= ======= Gross profit: Agribusiness $308 $286 8%
$1,379 $2,029 (32)% Fertilizer (172) 135 n/m (739) 1,449 n/m Edible
oil products 138 50 176% 412 356 16% Milling products 40 38 5% 152
202 (25)% --- --- --- --- Total $314 $509 (38)% $1,204 $4,036 (70)%
==== ==== ====== ====== Selling, general and administrative
expenses: Agribusiness $(241) $(217) (11)% $(758) $(858) 12%
Fertilizer (41) (41) -% (192) (284) 32% Edible oil products (85)
(90) 6% (296) (368) 20% Milling products (23) (21) (10)% (96) (103)
7% --- --- --- ---- Total $(390) $(369) (6)% $(1,342) $(1,613) 17%
===== ===== ======= ======= Foreign exchange gain (loss):
Agribusiness $(8) $(165) $218 $(198) Fertilizer 10 (361) 256 (530)
Edible oil products (3) (18) (4) (22) Milling products - 1 (1) 1
--- --- --- --- Total $(1) $(543) $469 $(749) === ===== ==== =====
Equity in earnings of affiliates: Agribusiness $10 $(3) n/m $3 $6
(50)% Fertilizer (14) 1 n/m (13) 7 n/m Edible oil products 72 8
800% 86 17 406% Milling products 1 1 -% 4 4 -% --- --- --- ---
Total $69 $7 886% $80 $34 135% === === === === Noncontrolling
interest: Agribusiness $(8) $(1) $(20) $(24) Fertilizer 51 (29) 87
(323) Edible oil products (4) (1) (10) (8) Milling products - - - -
--- --- --- --- Total $39 $(31) $57 $(355) === ==== === =====
Quarter Ended Year Ended December 31, December 31, ------------
Percent ------------ Percent 2009 2008 Change 2009 2008 Change ----
---- ------ ---- ---- ------ Other income/(expense): Agribusiness
$(1) $14 $(2) $(6) Fertilizer (8) 6 (15) 2 Edible oil products (4)
4 (7) 14 Milling products - (1) (1) - --- --- --- --- Total $(13)
$23 $(25) $10 ==== === ==== === Segment earnings before interest
and tax: Agribusiness $60 $(86) n/m $820 $949 (14)% Fertilizer
(174) (289) 40% (616) 321 n/m Edible oil products 114 (47) n/m 181
(11) n/m Milling products 18 18 -% 58 104 (44)% --- --- --- ---
Total (Note 1) $18 $(404) n/m $443 $1,363 (67)% === ===== ====
====== Reconciliation of total segment earnings before interest and
tax: Total segment earnings before interest and tax $18 $(404) $443
$1,363 Interest income 26 55 122 214 Interest expense (71) (76)
(283) (361) Income tax benefit (expense) 58 214 110 (245)
Noncontrolling interest share of interest and tax (20) 1 (31) 93
--- --- --- --- Net income (loss) attributable to Bunge $11 $(210)
$361 $1,064 === ===== ==== ====== Depreciation, depletion and
amortization: Agribusiness $(53) $(42) (26)% $(194) $(186) (4)%
Fertilizer (43) (31) (39)% (149) (161) 7% Edible oil products (21)
(18) (17)% (73) (74) 1% Milling products (7) (4) (75)% (27) (18)
(50)% --- --- --- --- Total $(124) $(95) (31)% $(443) $(439) (1)%
===== ==== ===== ===== 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) December 31,
December 31, 2009 2008 ---- ---- ASSETS Current assets: Cash and
cash equivalents $553 $1,004 Trade accounts receivable 2,363 2,350
Inventories (1) 4,862 5,653 Deferred income taxes 506 268 Other
current assets (2) 3,499 3,901 ----- ----- Total current assets
11,783 13,176 Property, plant and equipment, net 5,347 3,969
Goodwill 407 325 Other intangible assets, net 190 107 Investments
in affiliates 622 761 Deferred income taxes 979 864 Other
non-current assets 1,958 1,028 ----- ----- Total assets $21,286
$20,230 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities: Short-term debt $166 $473 Current portion of
long-term debt 31 78 Trade accounts payable 3,275 4,158 Deferred
income taxes 100 104 Other current liabilities 2,635 3,261 -----
----- Total current liabilities 6,207 8,074 Long-term debt 3,618
3,032 Deferred income taxes 183 132 Other non-current liabilities
913 864 Total Bunge shareholders' equity 9,494 7,436 Noncontrolling
interest 871 692 --- --- Total equity 10,365 8,128 ------ -----
Total liabilities and shareholders' equity $21,286 $20,230 =======
======= Note 1: Includes readily marketable inventories of $3,380
million and $2,741 million at December 31, 2009 and December 31,
2008, respectively. Note 2: Includes marketable securities of $15
million and $14 million at December 31, 2009 and December 31, 2008,
respectively. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In
millions) (Unaudited) Year Ended December 31, ------------ 2009
2008 ---- ---- OPERATING ACTIVITIES Net income $335 $1,326
Adjustments to reconcile net income to cash (used for) provided by
operating activities: Foreign exchange (gain) loss on debt (606)
472 Impairment of assets 31 18 Bad debt expense 55 69 Depreciation,
depletion and amortization 443 439 Stock-based compensation expense
17 66 Gain on sale of assets (4) (14) Recoverable taxes provision
61 (9) Deferred income taxes (204) (251) Equity in earnings of
affiliates (80) (34) Changes in operating assets and liabilities,
excluding the effects of acquisitions: Trade accounts receivable
242 (338) Inventories 1,636 (905) Prepaid commodity purchase
contracts 86 300 Secured advances to suppliers 221 (143) Trade
accounts payable (1,427) 1,161 Advances on sales (8) (106)
Recoverable taxes (471) (428) Unrealized net gain/loss on
derivative contracts (175) 184 Margin deposits (229) 8 Accrued
liabilities (56) 207 Other-net (235) 521 ---- --- Cash (used for)
provided by operating activities (368) 2,543 INVESTING ACTIVITIES
Payments made for capital expenditures (918) (896) Acquisitions of
businesses (net of cash acquired) (136) (131) Investments in
affiliates (8) (71) Related party (loans) repayments (22) 47
Proceeds from disposal of property, plant and equipment 36 39
Proceeds from (payments for) investments 96 (94) --- --- Cash used
for investing activities (952) (1,106) FINANCING ACTIVITIES Net
repayments in short-term debt with maturities of 90 days or less
(342) (687) Proceeds from short-term debt with maturities greater
than 90 days 1,140 1,887 Repayments of short-term debt with
maturities greater than 90 days (1,164) (1,206) Proceeds from
long-term debt 2,899 1,967 Repayment of long-term debt (2,367)
(2,819) Proceeds from sale of common shares 763 7 Dividends paid to
preference shareholders (78) (81) Dividends paid to common
shareholders (103) (87) Dividends paid to noncontrolling interest
(17) (154) Capital contributions from noncontrolling interest 87 27
Return of capital to noncontrolling interest (44) - --- --- Cash
provided by (used for) financing activities 774 (1,146) Effect of
exchange rate changes on cash and cash equivalents 95 (268) ---
---- Net (decrease) increase in cash and cash equivalents (451) 23
Cash and cash equivalents, beginning of period 1,004 981 ----- ---
Cash and cash equivalents, end of period $553 $1,004 ==== ======
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 (loss) 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 (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 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. In addition, interest
income and expense have become less meaningful to the segments'
operating activities. 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) attributable to Bunge or any other
measure of consolidated operating results under U.S. GAAP. Below is
a reconciliation of total segment EBIT to net income (loss)
attributable to Bunge: Quarter Ended Year Ended --------------
---------- December 31, December 31, ------------ ------------ (In
millions) 2009 2008 2009 2008 ------------- ---- ---- ---- ----
Total segment EBIT $18 $(404) $443 $1,363 Interest income 26 55 122
214 Interest expense (71) (76) (283) (361) Income tax benefit
(expense) 58 214 110 (245) Noncontrolling interest share of
interest and tax (20) 1 (31) 93 --- --- --- --- Net income (loss)
attributable to Bunge $11 $(210) $361 $1,064 === ===== ==== ======
DATASOURCE: Bunge Limited CONTACT: Investors, Mark Haden,
+1-914-684-3398, ; Media, Susan Burns, +1-914-684-3246, , both of
Bunge Limited Web Site: http://www.bunge.com/
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