ST. LOUIS, Oct. 28, 2020
/PRNewswire/ -- Bunge Limited (NYSE:BG) today reported third
quarter 2020 results.
- Q3 GAAP EPS of $1.84 vs.
$(10.57) in the prior year;
$2.47 vs. $1.28 on an adjusted basis excluding certain
gains/charges and mark-to-market timing differences
- Strong results driven by outstanding execution across
Bunge's global platform
- Exceptional Agribusiness performance driven by oilseed
processing, which benefited from higher margins and
volumes
- Edible Oils results better than expected; year to date
results higher than prior year despite COVID-19 impacts
- Increasing full-year adjusted EPS outlook to between
$6.25 and $6.75 based on strong Q3 results and improving
market trends
Greg Heckman, Bunge's Chief
Executive Officer, commented, "Our team delivered a strong third
quarter with outstanding execution across our global platform,
leveraging improving market trends. We achieved record crush
utilization and captured exceptionally strong margins while
supporting our customers and maintaining measures to protect the
health of our employees. These results, and our performance over
the past few quarters, reflect the meaningful changes we've made to
our operating model, portfolio and financial approach.
"Looking into next year, we expect many of the favorable trends
to continue with demand for our products remaining strong. We
also expect additional global demand for vegetable oil from the
growth of biofuels. With our strength in oilseed processing, in
addition to our global origination and distribution capabilities,
we believe we are well positioned to meet market demands and
capitalize on this growth."
|
Quarter
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
US$ in millions,
except per share data
|
2020
|
2019
|
|
2020
|
2019
|
|
Net income
attributable to Bunge
|
$
|
262
|
|
$
|
(1,488)
|
|
|
$
|
594
|
|
$
|
(1,229)
|
|
|
|
|
|
|
|
|
Net income per
common share-diluted
|
$
|
1.84
|
|
$
|
(10.57)
|
|
|
$
|
3.98
|
|
$
|
(8.87)
|
|
|
|
|
|
|
|
|
Mark-to-market timing
difference (a)
|
$
|
0.85
|
|
$
|
(0.13)
|
|
|
$
|
0.97
|
|
$
|
(0.25)
|
|
|
Certain (gains) and
charges (b)
|
$
|
(0.14)
|
|
$
|
11.30
|
|
|
$
|
0.32
|
|
$
|
11.50
|
|
|
Dilutive share basis
difference - GAAP vs Adjusted (c)
|
$
|
—
|
|
$
|
0.68
|
|
|
$
|
—
|
|
$
|
0.69
|
|
|
Adjustment of
redeemable noncontrolling interest (d)
|
$
|
(0.08)
|
|
$
|
—
|
|
|
$
|
(0.01)
|
|
$
|
—
|
|
|
Adjusted Net
income per common share-diluted (e)
|
$
|
2.47
|
|
$
|
1.28
|
|
|
$
|
5.26
|
|
$
|
3.07
|
|
|
|
|
|
|
|
|
Core Segment EBIT
(e) (f)
|
$
|
420
|
|
$
|
202
|
|
|
$
|
1,305
|
|
$
|
709
|
|
|
Mark-to-market timing
difference (a)
|
161
|
|
(25)
|
|
|
186
|
|
(47)
|
|
|
Certain (gains) &
charges (b)
|
—
|
|
110
|
|
|
—
|
|
123
|
|
|
Adjusted Core
Segment EBIT (e)
|
$
|
581
|
|
$
|
287
|
|
|
$
|
1,491
|
|
$
|
785
|
|
|
|
|
|
|
|
|
Corporate and Other
EBIT (e)
|
$
|
(92)
|
|
$
|
(99)
|
|
|
$
|
(274)
|
|
$
|
(77)
|
|
|
Certain (gains) &
charges (b)
|
—
|
|
30
|
|
|
71
|
|
45
|
|
|
Adjusted Corporate
and Other EBIT (e)
|
$
|
(92)
|
|
$
|
(69)
|
|
|
$
|
(203)
|
|
$
|
(32)
|
|
|
|
|
|
|
|
|
Non-core Segment
EBIT (e) (g)
|
$
|
23
|
|
$
|
(1,543)
|
|
|
$
|
(112)
|
|
$
|
(1,567)
|
|
|
Certain (gains) &
charges (b)
|
—
|
|
1,604
|
|
|
—
|
|
1,607
|
|
|
Adjusted Non-core
Segment EBIT (e)
|
$
|
23
|
|
$
|
61
|
|
|
$
|
(112)
|
|
$
|
40
|
|
|
|
|
|
|
|
|
Total Segment EBIT
(e)
|
$
|
351
|
|
$
|
(1,440)
|
|
|
$
|
919
|
|
$
|
(935)
|
|
|
Mark-to-market timing
difference (a)
|
161
|
|
$
|
(25)
|
|
|
$
|
186
|
|
$
|
(47)
|
|
|
Total Certain (gains)
& charges (b)
|
—
|
|
$
|
1,744
|
|
|
$
|
71
|
|
$
|
1,775
|
|
|
Adjusted Total
Segment EBIT (e)
|
$
|
512
|
|
$
|
279
|
|
|
$
|
1,176
|
|
$
|
793
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Mark-to-market
timing impact of certain commodity and freight contracts, readily
marketable inventories, and related hedges associated with
committed future operating capacity. See note 3 in the Additional
Financial information section of this release for
details.
|
|
(b)
|
Certain (gains)
& charges included in Total Segment EBIT. See Additional
Financial Information for details.
|
|
(c)
|
Dilutive share
basis difference - GAAP vs. Adjusted represents the impact of using
different weighted-average common shares outstanding in the
denominators of the respective GAAP and Adjusted EPS calculations.
See note 4 in the Additional Financial information section of this
release for for details.
|
|
(d)
|
Retained earnings
impact associated with an adjustment to the carrying amount of the
redeemable noncontrolling interest recorded in respect of our 70%
ownership interest in Loders. See note 5 in the Additional
Financial information section of this release for for
details.
|
|
(e)
|
Core Segment EBIT,
Adjusted Core Segment EBIT, Corporate and Other EBIT, Adjusted
Corporate and Other EBIT, Non-core Segment EBIT, Adjusted Non-core
Segment EBIT, Total Segment EBIT, Adjusted Total Segment EBIT, and
Adjusted Net income per common share-diluted 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.
|
|
(f)
|
Core Segment
earnings before interest and tax ("Core Segment EBIT") comprises
the aggregate earnings before interest and tax ("EBIT") of Bunge's
Agribusiness, Edible Oils Products, Milling Products and Fertilizer
reportable segments, and excludes Bunge's Sugar & Bioenergy
reportable segment and Corporate and Other
activities.
|
|
(g)
|
Non-core Segment
EBIT comprises Bunge's Sugar & Bioenergy reportable segment
EBIT, which reflects Bunge's share of the results of its 50/50
joint venture with BP p.l.c.
|
Core Segments
Agribusiness
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
US$ in millions,
except per share data
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Volumes (in
thousand metric tons)
|
35,887
|
|
36,554
|
|
|
107,222
|
|
104,992
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
7,108
|
|
$
|
7,008
|
|
|
$
|
20,247
|
|
$
|
20,995
|
|
|
|
|
|
|
|
|
Gross
Profit
|
$
|
355
|
|
$
|
249
|
|
|
$
|
1,229
|
|
$
|
791
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expense
|
$
|
(147)
|
|
$
|
(113)
|
|
|
$
|
(367)
|
|
$
|
(351)
|
|
|
|
|
|
|
|
|
Foreign exchange
gains (losses)
|
$
|
59
|
|
$
|
(57)
|
|
|
$
|
76
|
|
$
|
(76)
|
|
|
|
|
|
|
|
|
Income (loss) from
affiliates
|
$
|
18
|
|
$
|
10
|
|
|
$
|
43
|
|
$
|
24
|
|
|
|
|
|
|
|
|
Segment
EBIT
|
$
|
299
|
|
$
|
107
|
|
|
$
|
1,015
|
|
$
|
457
|
|
|
Mark-to-market timing
difference
|
168
|
|
(25)
|
|
|
175
|
|
(47)
|
|
|
Certain (gains) &
charges
|
—
|
|
92
|
|
|
—
|
|
102
|
|
|
Adjusted Segment
EBIT
|
$
|
467
|
|
$
|
174
|
|
|
$
|
1,190
|
|
$
|
512
|
|
|
|
|
|
|
|
|
Certain (gains) &
charges, Net Income (Loss)
Attributable to Bunge
|
$
|
—
|
|
$
|
85
|
|
|
$
|
—
|
|
$
|
95
|
|
|
Certain (gains) &
charges, Earnings Per Share
|
$
|
—
|
|
$
|
0.56
|
|
|
$
|
—
|
|
$
|
0.63
|
|
Oilseeds (2)
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
US$ in millions,
except per share data
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Oilseeds
EBIT
|
$
|
230
|
|
$
|
69
|
|
|
$
|
622
|
|
$
|
349
|
|
|
Mark-to-market timing
difference
|
162
|
|
(25)
|
|
|
154
|
|
(47)
|
|
|
Certain (gains) &
charges
|
—
|
|
68
|
|
|
—
|
|
77
|
|
|
Adjusted Oilseed
EBIT
|
$
|
392
|
|
$
|
112
|
|
|
$
|
776
|
|
$
|
379
|
|
In Oilseeds, soy processing results were higher in South America, Europe and Asia, where margins increased from strong meal
and vegetable oil demand, partially offset by slightly lower
results in the U.S. Softseed processing results increased in all
regions. Lower variable per unit costs also contributed to improved
performance. Higher results in trading and distribution operations
were due to increased margins and favorable positioning.
Grains (2)
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
US$ in millions,
except per share data
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Grains
EBIT
|
$
|
69
|
|
$
|
38
|
|
|
$
|
393
|
|
$
|
108
|
|
|
Mark-to-market timing
difference
|
6
|
|
—
|
|
|
21
|
|
—
|
|
|
Certain (gains) &
charges
|
—
|
|
24
|
|
|
—
|
|
25
|
|
|
Adjusted Grains
EBIT
|
$
|
75
|
|
$
|
62
|
|
|
$
|
414
|
|
$
|
133
|
|
In Grains, higher results were primarily driven by origination
in South America, which benefited
from strong execution and farmer selling as crop prices in local
currency increased during the quarter.
Edible Oil Products
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
US$ in millions,
except per share data
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Volumes (in
thousand metric tons)
|
2,473
|
|
2,462
|
|
|
7,101
|
|
7,099
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
2,434
|
|
$
|
2,319
|
|
|
$
|
6,886
|
|
$
|
6,764
|
|
|
|
|
|
|
|
|
Gross
Profit
|
$
|
177
|
|
$
|
160
|
|
|
$
|
451
|
|
$
|
450
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expense
|
$
|
(96)
|
|
$
|
(86)
|
|
|
$
|
(278)
|
|
$
|
(262)
|
|
|
|
|
|
|
|
|
Foreign exchange
gains (losses)
|
$
|
(3)
|
|
$
|
5
|
|
|
$
|
—
|
|
$
|
4
|
|
|
|
|
|
|
|
|
Income (loss) from
affiliates
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
Segment
EBIT
|
$
|
76
|
|
$
|
59
|
|
|
$
|
173
|
|
$
|
161
|
|
|
Mark-to-market timing
difference
|
(9)
|
|
—
|
|
|
8
|
|
—
|
|
|
Certain (gains) &
charges
|
—
|
|
13
|
|
|
—
|
|
14
|
|
|
Adjusted Segment
EBIT
|
$
|
67
|
|
$
|
72
|
|
|
$
|
181
|
|
$
|
175
|
|
|
|
|
|
|
|
|
Certain (gains) &
charges, Net Income (Loss)
Attributable to Bunge
|
$
|
—
|
|
$
|
13
|
|
|
$
|
—
|
|
$
|
14
|
|
|
Certain (gains) &
charges, Earnings Per Share
|
$
|
—
|
|
$
|
0.08
|
|
|
$
|
—
|
|
$
|
0.09
|
|
|
|
|
|
|
|
Edible Oil Products Summary
Results improved significantly from the second quarter, but were
down from a strong prior year. Higher earnings in Brazil and Asia from improved demand in food processor
and consumer retail channels were more than offset by lower
earnings in North America and
Europe.
Milling Products
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
US$ in millions,
except per share data
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Volumes (in
thousand metric tons)
|
1,180
|
|
1,131
|
|
|
3,455
|
|
3,349
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
416
|
|
$
|
437
|
|
|
$
|
1,213
|
|
$
|
1,293
|
|
|
|
|
|
|
|
|
Gross
Profit
|
$
|
38
|
|
$
|
41
|
|
|
$
|
135
|
|
$
|
130
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expense
|
$
|
(22)
|
|
$
|
(24)
|
|
|
$
|
(70)
|
|
$
|
(75)
|
|
|
|
|
|
|
|
|
Foreign exchange
gains (losses)
|
$
|
1
|
|
$
|
—
|
|
|
$
|
1
|
|
$
|
3
|
|
|
|
|
|
|
|
|
Income (loss) from
affiliates
|
$
|
(1)
|
|
$
|
—
|
|
|
$
|
(1)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
Segment
EBIT
|
$
|
16
|
|
$
|
14
|
|
|
$
|
64
|
|
$
|
61
|
|
|
Mark-to-market timing
difference
|
2
|
|
—
|
|
|
3
|
|
—
|
|
|
Certain (gains) &
charges
|
—
|
|
5
|
|
|
—
|
|
7
|
|
|
Adjusted Segment
EBIT
|
$
|
18
|
|
$
|
19
|
|
|
$
|
67
|
|
$
|
68
|
|
|
|
|
|
|
|
|
Certain (gains) &
charges, Net Income (Loss)
Attributable to Bunge
|
$
|
—
|
|
$
|
4
|
|
|
$
|
—
|
|
$
|
5
|
|
|
Certain (gains) &
charges, Earnings Per Share
|
$
|
—
|
|
$
|
0.03
|
|
|
$
|
—
|
|
$
|
0.04
|
|
Milling Products Summary
Higher results in Brazil, which
were primarily driven by increased volumes, were slightly offset by
lower margins in Mexico. Results
in the U.S. were comparable to last year.
Fertilizer
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
US$ in millions,
except per share data
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Volumes (in
thousand metric tons)
|
485
|
|
512
|
|
|
1,036
|
|
1,013
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
153
|
|
$
|
178
|
|
|
$
|
324
|
|
$
|
355
|
|
|
|
|
|
|
|
|
Gross
Profit
|
$
|
30
|
|
$
|
28
|
|
|
$
|
61
|
|
$
|
44
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expense
|
$
|
—
|
|
$
|
(5)
|
|
|
$
|
(7)
|
|
$
|
(12)
|
|
|
|
|
|
|
|
|
Foreign exchange
gains (losses)
|
$
|
1
|
|
$
|
—
|
|
|
$
|
1
|
|
$
|
—
|
|
|
|
|
|
|
|
|
Income (loss) from
affiliates
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
Segment
EBIT
|
$
|
29
|
|
$
|
22
|
|
|
$
|
53
|
|
$
|
30
|
|
|
Certain (gains) &
charges
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
Adjusted Segment
EBIT
|
$
|
29
|
|
$
|
22
|
|
|
$
|
53
|
|
$
|
30
|
|
|
|
|
|
|
|
|
Certain (gains) &
charges, Net Income (Loss)
Attributable to Bunge
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
Certain (gains) &
charges, Earnings Per Share
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
Fertilizer Summary
Higher segment results reflected improved performance in our
Argentine operation driven by higher margins, partially offset by
lower volumes.
Corporate and Other
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
US$ in millions,
except per share data
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Gross
Profit
|
$
|
(3)
|
|
$
|
(1)
|
|
|
$
|
(2)
|
|
$
|
10
|
|
|
|
|
|
|
|
|
Selling, general
and administrative
expense
|
$
|
(87)
|
|
$
|
(91)
|
|
|
$
|
(270)
|
|
$
|
(239)
|
|
|
|
|
|
|
|
|
Foreign exchange
gains (losses)
|
$
|
(4)
|
|
$
|
1
|
|
|
$
|
(3)
|
|
$
|
2
|
|
|
|
|
|
|
|
|
Other income
(expense) - net
|
$
|
2
|
|
$
|
(8)
|
|
|
$
|
1
|
|
$
|
150
|
|
|
|
|
|
|
|
|
Segment EBIT
(a)
|
$
|
(92)
|
|
$
|
(99)
|
|
|
$
|
(274)
|
|
$
|
(77)
|
|
|
Certain (gains) &
charges
|
—
|
|
30
|
|
|
71
|
|
45
|
|
|
Adjusted Segment
EBIT
|
$
|
(92)
|
|
$
|
(69)
|
|
|
$
|
(203)
|
|
$
|
(32)
|
|
|
|
|
|
|
|
|
Certain (gains) &
charges, Net Income (Loss)
Attributable to Bunge
|
$
|
(21)
|
|
$
|
(6)
|
|
|
$
|
48
|
|
$
|
6
|
|
|
Certain (gains) &
charges, Earnings Per Share
|
$
|
(0.14)
|
|
$
|
(0.04)
|
|
|
$
|
0.32
|
|
$
|
0.05
|
|
Corporate
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
US$ in millions,
except per share data
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Corporate
EBIT
|
$
|
(94)
|
|
$
|
(95)
|
|
|
$
|
(220)
|
|
$
|
(235)
|
|
|
Certain (gains) &
charges
|
—
|
|
30
|
|
|
5
|
|
45
|
|
|
Adjusted Corporate
EBIT
|
$
|
(94)
|
|
$
|
(65)
|
|
|
$
|
(215)
|
|
$
|
(190)
|
|
Other
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
US$ in millions,
except per share data
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Other EBIT
|
$
|
2
|
|
$
|
(4)
|
|
|
$
|
(54)
|
|
$
|
158
|
|
|
Certain (gains) &
charges
|
—
|
|
—
|
|
|
66
|
|
—
|
|
|
Adjusted Other
EBIT
|
$
|
2
|
|
$
|
(4)
|
|
|
$
|
12
|
|
$
|
158
|
|
Corporate and Other Summary
Corporate includes salaries and overhead for corporate
functions, and Other comprises the results of Bunge Ventures and
the Company's securitization, captive insurance and other
activities. Total adjusted segment EBIT for Corporate and Other was
comprised of $(94) million from
Corporate and $2 million from Other
for the quarter ended September 30,
2020. This compares to $(65)
million from Corporate and $(4)
million from Other for the prior year period. The increase
in Corporate expenses during the quarter primarily related to
higher performance-based compensation driven by strong financial
performance.
Non-core Segments
Sugar & Bioenergy
|
Quarter
Ended
|
|
Nine Months
Ended
|
|
US$ in millions,
except per share data
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Volumes (in
thousand metric tons)
|
96
|
|
1,083
|
|
|
244
|
|
2,727
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
48
|
|
$
|
381
|
|
|
$
|
124
|
|
$
|
950
|
|
|
|
|
|
|
|
|
Gross
Profit
|
$
|
5
|
|
$
|
(1,455)
|
|
|
$
|
7
|
|
$
|
(1,454)
|
|
|
|
|
|
|
|
|
Selling, general
and administrative
expense
|
$
|
—
|
|
$
|
(10)
|
|
|
$
|
(1)
|
|
$
|
(30)
|
|
|
|
|
|
|
|
|
Foreign exchange
gains (losses)
|
$
|
—
|
|
$
|
(78)
|
|
|
$
|
—
|
|
$
|
(80)
|
|
|
|
|
|
|
|
|
Income (loss) from
affiliates
|
$
|
18
|
|
$
|
(2)
|
|
|
$
|
(118)
|
|
$
|
(3)
|
|
|
|
|
|
|
|
|
Segment
EBIT
|
$
|
23
|
|
$
|
(1,543)
|
|
|
$
|
(112)
|
|
$
|
(1,567)
|
|
|
Certain (gains) &
charges
|
—
|
|
1,604
|
|
|
—
|
|
1,607
|
|
|
Adjusted Segment
EBIT
|
$
|
23
|
|
$
|
61
|
|
|
$
|
(112)
|
|
$
|
40
|
|
|
|
|
|
|
|
|
Certain (gains) &
charges, Net Income (Loss)
Attributable to Bunge
|
$
|
—
|
|
$
|
1,604
|
|
|
$
|
—
|
|
$
|
1,607
|
|
|
Certain (gains) &
charges, Earnings Per Share
|
$
|
—
|
|
$
|
10.67
|
|
|
$
|
—
|
|
$
|
10.69
|
|
Sugar & Bioenergy Summary
Segment results for this quarter reflected our share of the
results of the 50/50 joint venture with BP. By contrast,
third quarter 2019 reflected our 100 percent ownership of the
Brazilian sugar and bioenergy operations that we contributed to the
joint venture in December 2019.
Additionally, results of the joint venture are reported on a
one-month lag.
Results in the quarter benefited from higher year-over-year
average sugar and ethanol prices in local currency, as well as
improved industrial efficiency and costs. Earnings in the third
quarter of last year benefited from $32
million of lower depreciation due to our Brazilian sugar and
bioenergy operations being classified as held for sale.
Cash Flow
|
Nine Months
Ended
|
|
Sep 30,
2020
|
Sep 30,
2019
|
|
Cash used for
operating activities
|
$
|
(2,128)
|
|
$
|
(1,313)
|
|
|
Proceeds from
beneficial interest in securitized trade receivables
|
1,164
|
|
800
|
|
|
Cash used for
operating activities, adjusted
|
$
|
(964)
|
|
$
|
(513)
|
|
Cash used for operations in the nine months ended September 30, 2020 was $2,128 million compared to cash used of
$1,313 million in the same period
last year. Adjusting for the proceeds from beneficial interest in
securitized trade receivables, cash used by operating activities
was $964 million compared with cash
used for operating activities of $513
million in the prior year. This increase in cash used for
operations was primarily driven by higher working capital levels,
reflecting higher commodity prices and increased purchases of
readily marketable inventory.
Income Taxes
For the three and nine months ended September 30, 2020,
income tax expense was $38 million
and $151 million, respectively,
compared to $(28) million and
$70 million, respectively, for the
three and nine months ended September 30,
2019. The increase in income tax expense during 2020 is
primarily due to higher pre-tax income in 2020.
Bunge continues to take proactive steps to protect the health
and safety of its employees, their families and the communities in
which it operates. Through an internal task force, the Company
closely monitors developments related to the pandemic and provides
guidance to its facilities worldwide. Each of Bunge's facilities
around the globe is taking steps to respond to COVID-19 based on
the nature of its operations and the actions being taken by local
governments. The Company has continued to restrict travel, follow
upgraded cleaning practices at its facilities and offices, require
remote work arrangements for teammates wherever possible, reduce
staffing in its production facilities and keep social distancing
and other safety related measures in place.
Numerous countries around the globe, including places where
Bunge operates production facilities or maintains offices, have
continued to impose quarantines and significant restrictions,
including shelter-in-place or stay-at-home orders. Additionally,
the rise in the number of observed COVID-19 cases in many parts of
the world may lead to governments re-imposing travel and work
restrictions or imposing additional restrictions. In locations
where such restrictions are in place, Bunge has been deemed an
essential or life-sustaining operation. To date, the Company has
not seen a significant disruption in its supply chain, has been
able to mitigate logistics and distribution issues that have
arisen, and substantially all of its facilities around the world
have continued to operate at or near normal levels. Bunge continues
to monitor local, regional and national governmental actions that
could limit or restrict the movement of agricultural commodities or
products or otherwise disrupt physical product flows or its ability
to operate in the future.
Excluding notable items and mark-to-market timing differences,
we now expect full-year adjusted earnings of between $6.25 and $6.75 per
share.
In Agribusiness, our improved outlook reflects our third quarter
year-to-date results, the current market environment and forward
curves.
In Edible Oils, we now expect adjusted results to be up compared
to last year due to the strong performance of our consumer
businesses and growing biofuel demand. Expected full-year adjusted
results in Milling continue to be in line with last year.
In Fertilizer, we now expect full-year adjusted results to be
slightly higher than last year.
Corporate and Other is expected to be comparable to last year,
excluding Bunge Ventures.
For 2020, the Company expects an adjusted annual effective tax
rate in the range of 20% to 22%; net interest expense of
approximately $230 million; capital
expenditures in the range of $375 to
$400 million; and depreciation and
amortization of approximately $430
million.
- Conference Call and Webcast Details
Bunge Limited's management will host a conference call at
8:00 a.m. Eastern (7:00 a.m. Central) on Wednesday, October 28, 2020 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 1 (844) 735-3666. If you are
located outside the United States or Canada, dial +1
(412) 317-5706. Please dial in five to 10 minutes before the
scheduled start time. The call will also be webcast live at
www.bunge.com.
To access the webcast, go to "Events and presentations" in the
"Investors" section of the company's website. Select "Q3 2020 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
October 28, 2020, continuing through
November 28, 2020. To listen to it,
please dial 1 (877) 344-7529 in the United States, 1 (855) 669-9658
in Canada, or +1 (412) 317-0088 in other locations. When
prompted, enter confirmation code 10148043. A replay will also
be available in "Past events" at "Events and presentations" in the
"Investors" section of the company's website.
Bunge (www.bunge.com, NYSE: BG) is a world leader in sourcing,
processing and supplying oilseed and grain products and
ingredients. Founded in 1818, Bunge's expansive network feeds and
fuels a growing world, creating sustainable products and
opportunities for more than 70,000 farmers and the consumers they
serve across the globe. The company is headquartered in
St. Louis, Missouri and has
approximately 25,000 employees who stand behind more than 350 port
terminals, oilseed processing plants, grain silos, and food and
ingredient production and packaging facilities around the
world.
We routinely post important information for investors on our
website, www.bunge.com, in the "Investors" section. We may use
this website as a means of disclosing material, non-public
information and for complying with our disclosure obligations under
Regulation FD. Accordingly, investors should monitor the Investors
section of our website, in addition to following our press
releases, SEC filings, public conference calls, presentations and
webcasts. The information contained on, or that may be accessed
through, our website is not incorporated by reference into, and is
not a part of, this document.
- 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 (Exchange Act). 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 cause actual results to differ from these forward-looking
statements: 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; competitive developments in our industries; the
effects of weather conditions and the outbreak of crop and animal
disease on our business; global and regional economic,
agricultural, financial and commodities market, political, social
and health conditions; the impacts of pandemic outbreaks, including
COVID-19; 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, operational excellence
and other business optimization initiatives; changes in government
policies, laws and regulations affecting our business, including
agricultural and trade policies and environmental, tax and biofuels
regulation; our capital allocation plans, funding needs and
financing sources; changes in foreign exchange policy or rates; the
outcome of our portfolio rationalization initiatives; the
effectiveness of our risk management strategies; our ability to
attract and retain executive management and key personnel;
operational risks, including industrial accidents, natural
disasters and cybersecurity incidents; 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
Certain gains and (charges), quarter-to-date
The following tables provide a summary of certain gains and
(charges) that may be of interest to investors, including a
description of these items and their effect on net income (loss)
attributable to Bunge, earnings per share diluted and segment EBIT
for the three month periods ended September 30, 2020 and
2019.
|
(US$ in millions,
except per share data)
|
Net Income
(Loss)
Attributable
to
Bunge
|
Earnings
Per
Share
Diluted
|
Segment
EBIT
|
|
Quarter Ended
September 30,
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
|
Core
Segments:
|
$
|
—
|
|
$
|
(102)
|
|
$
|
—
|
|
$
|
(0.67)
|
|
$
|
—
|
|
$
|
(110)
|
|
|
Agribusiness
|
$
|
—
|
|
$
|
(85)
|
|
$
|
—
|
|
$
|
(0.56)
|
|
$
|
—
|
|
$
|
(92)
|
|
|
Severance, employee
benefit, and other costs
|
—
|
|
(2)
|
|
—
|
|
(0.01)
|
|
—
|
|
(2)
|
|
|
Impairment
charges
|
—
|
|
(72)
|
|
—
|
|
(0.48)
|
|
—
|
|
(79)
|
|
|
Expired
indemnification asset
|
—
|
|
(11)
|
|
—
|
|
(0.07)
|
|
—
|
|
(11)
|
|
|
|
|
|
|
|
|
|
Edible Oil
Products
|
$
|
—
|
|
$
|
(13)
|
|
$
|
—
|
|
$
|
(0.08)
|
|
$
|
—
|
|
$
|
(13)
|
|
|
Severance, employee
benefit, and other costs
|
—
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
(1)
|
|
|
Impairment
charges
|
—
|
|
(12)
|
|
—
|
|
(0.08)
|
|
—
|
|
(12)
|
|
|
|
|
|
|
|
|
|
Milling
Products
|
$
|
—
|
|
$
|
(4)
|
|
$
|
—
|
|
$
|
(0.03)
|
|
$
|
—
|
|
$
|
(5)
|
|
|
Impairment
charges
|
—
|
|
(4)
|
|
—
|
|
(0.03)
|
|
—
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fertilizer
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other:
|
$
|
21
|
|
$
|
6
|
|
$
|
0.14
|
|
$
|
0.04
|
|
$
|
—
|
|
$
|
(30)
|
|
|
Severance, employee
benefit, and other costs
|
—
|
|
(5)
|
|
—
|
|
(0.04)
|
|
—
|
|
(8)
|
|
|
Income tax
benefits
|
21
|
|
30
|
|
0.14
|
|
0.20
|
|
—
|
|
—
|
|
|
Impairment
charges
|
—
|
|
(19)
|
|
—
|
|
(0.12)
|
|
—
|
|
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-core
Segment:
|
$
|
—
|
|
$
|
(1,604)
|
|
$
|
—
|
|
$
|
(10.67)
|
|
$
|
—
|
|
$
|
(1,604)
|
|
|
Sugar &
Bioenergy
|
$
|
—
|
|
$
|
(1,604)
|
|
$
|
—
|
|
$
|
(10.67)
|
|
$
|
—
|
|
$
|
(1,604)
|
|
|
Sugar restructuring
charges
|
—
|
|
(1)
|
|
—
|
|
(0.01)
|
|
—
|
|
(1)
|
|
|
Charges related to
assets classified as held for sale
|
—
|
|
(1,603)
|
|
—
|
|
(10.66)
|
|
—
|
|
(1,603)
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
21
|
|
$
|
(1,700)
|
|
$
|
0.14
|
|
$
|
(11.30)
|
|
$
|
—
|
|
$
|
(1,744)
|
|
|
|
|
|
|
|
|
|
|
See Definition and
Reconciliation of Non-GAAP Measures.
|
Core Segments
Agribusiness
EBIT for the quarter ended September 30, 2019 included
$1 million of severance and other
employee benefit costs related to the Company's Global
Competitiveness Plan (GCP), recorded in SG&A, a further
$1 million of severance and other
employee benefit costs related to other industrial initiatives,
recorded in COGS, $79 million of
PP&E impairment charges at certain facilities subject to the
Company's portfolio rationalization initiatives, recorded in COGS,
and an $11 million charge related to
the reversal of an expired indemnification asset in connection with
an uncertain tax position, recorded in SG&A.
Edible Oil Products
EBIT for the quarter ended September 30, 2019 included
$1 million of severance and other
employee benefit costs related to the GCP, recorded in SG&A,
and $12 million of PP&E
impairment charges at certain facilities subject to the Company's
portfolio rationalization initiatives, recorded in COGS.
Milling Products
EBIT for the quarter ended September 30, 2019 included
$5 million of PP&E impairment
charges at certain facilities subject to the Company's portfolio
rationalization initiatives, recorded in COGS.
Corporate and Other
Net Income for the quarter ended September 30, 2020
included a $21 million benefit
related to the reversal of a deferred tax asset valuation allowance
in Europe.
EBIT for the quarter ended September 30, 2019 included
$8 million of severance and other
employee benefit costs related to the GCP, included in SG&A,
and $22 million of impairment charges
related to the relocation of the Company's global headquarters,
recorded in SG&A. Net Income also included income tax benefits
of $30 million during the quarter
ended September 30, 2019, of which $19
million related to the favorable resolution of uncertain tax
positions in Asia, and
$11 million related to the lapse of
statutes of limitations on unrecognized tax benefits in
Europe.
Non-core Segment
Sugar & Bioenergy
EBIT for the quarter ended September 30, 2019 included
$1,524 million of impairment charges,
recorded in COGS, and $79 million of
foreign currency losses on intercompany loans no longer classified
as permanently invested, recorded in Foreign exchange gains
(losses). Both such items related to the classification of the
Company's Brazilian sugar and bioenergy operations as held for
sale. EBIT for the quarter ended September 30, 2019 also
included $1 million of restructuring
charges, recorded in COGS.
Certain gains and (charges), year-to-date
The following tables provide a summary of certain gains and
(charges) that may be of interest to investors, including a
description of these items and their effect on net income (loss)
attributable to Bunge, earnings per share diluted and total segment
EBIT for the nine month periods ended September 30, 2020 and
2019.
|
(US$ in millions,
except per share data)
|
Net Income
(Loss)
Attributable
to
Bunge
|
Earnings
Per Share
Diluted
|
Segment
EBIT
|
|
Nine Months Ended
September 30,
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
|
Core
Segments:
|
$
|
—
|
|
$
|
(114)
|
|
$
|
—
|
|
$
|
(0.76)
|
|
$
|
—
|
|
$
|
(123)
|
|
|
Agribusiness
|
$
|
—
|
|
$
|
(95)
|
|
$
|
—
|
|
$
|
(0.63)
|
|
$
|
—
|
|
$
|
(102)
|
|
|
Severance, employee
benefit, and other costs
|
—
|
|
(6)
|
|
—
|
|
(0.04)
|
|
—
|
|
(6)
|
|
|
Impairment
charges
|
—
|
|
(78)
|
|
—
|
|
(0.52)
|
|
—
|
|
(85)
|
|
|
Expired
indemnification asset
|
—
|
|
(11)
|
|
—
|
|
(0.07)
|
|
—
|
|
(11)
|
|
|
|
|
|
|
|
|
|
Edible Oil
Products
|
$
|
—
|
|
$
|
(14)
|
|
$
|
—
|
|
$
|
(0.09)
|
|
$
|
—
|
|
$
|
(14)
|
|
|
Impairment
charges
|
—
|
|
(12)
|
|
—
|
|
(0.08)
|
|
—
|
|
(12)
|
|
|
Acquisition and
integration costs
|
—
|
|
(1)
|
|
—
|
|
(0.01)
|
|
—
|
|
(1)
|
|
|
Severance, employee
benefit, and other costs
|
—
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
(1)
|
|
|
|
|
|
|
|
|
|
Milling
Products
|
$
|
—
|
|
$
|
(5)
|
|
$
|
—
|
|
$
|
(0.04)
|
|
$
|
—
|
|
$
|
(7)
|
|
|
Impairment
charges
|
—
|
|
(12)
|
|
—
|
|
(0.09)
|
|
—
|
|
(16)
|
|
|
Gain on arbitration
settlement
|
—
|
|
7
|
|
—
|
|
0.05
|
|
—
|
|
9
|
|
|
|
|
|
|
|
|
|
Fertilizer
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other:
|
$
|
(48)
|
|
$
|
(6)
|
|
$
|
(0.32)
|
|
$
|
(0.05)
|
|
$
|
(71)
|
|
$
|
(45)
|
|
|
Severance, employee
benefit, and other costs
|
(3)
|
|
(15)
|
|
(0.02)
|
|
(0.11)
|
|
(5)
|
|
(21)
|
|
|
Acquisition and
integration costs
|
—
|
|
(2)
|
|
—
|
|
(0.01)
|
|
—
|
|
(2)
|
|
|
Commercial claim
provision
|
(66)
|
|
—
|
|
(0.44)
|
|
—
|
|
(66)
|
|
—
|
|
|
Income tax
benefits
|
21
|
|
30
|
|
0.14
|
|
0.20
|
|
—
|
|
—
|
|
|
Impairment
charges
|
—
|
|
(19)
|
|
—
|
|
(0.13)
|
|
—
|
|
(22)
|
|
|
|
|
|
|
|
|
|
Non-core
Segment:
|
$
|
—
|
|
$
|
(1,607)
|
|
$
|
—
|
|
$
|
(10.69)
|
|
$
|
—
|
|
$
|
(1,607)
|
|
|
Sugar &
Bioenergy
|
$
|
—
|
|
$
|
(1,607)
|
|
$
|
—
|
|
$
|
(10.69)
|
|
$
|
—
|
|
$
|
(1,607)
|
|
|
Sugar restructuring
charges
|
—
|
|
(4)
|
|
—
|
|
(0.03)
|
|
—
|
|
(4)
|
|
|
Charges related to
assets classified as held for sale
|
—
|
|
(1,603)
|
|
—
|
|
(10.66)
|
|
—
|
|
(1,603)
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
(48)
|
|
$
|
(1,727)
|
|
$
|
(0.32)
|
|
$
|
(11.50)
|
|
$
|
(71)
|
|
$
|
(1,775)
|
|
|
|
|
|
|
|
|
|
|
See Definition and
Reconciliation of Non-GAAP Measures.
|
Core Segments
Agribusiness
EBIT for the nine months ended September 30, 2019 included
$5 million of program costs related
to the GCP, included in SG&A, $1
million of severance and other employee benefit costs
related to other industrial initiatives, recorded in COGS,
$85 million of PP&E impairment
charges at certain facilities subject to the Company's portfolio
rationalization initiatives, recorded in COGS, and an $11 million charge related to the reversal of an
expired indemnification asset in connection with an uncertain tax
position, recorded in SG&A.
Edible Oil Products
EBIT for the nine months ended September 30, 2019 included
$12 million of PP&E impairment
charges at certain facilities subject to the Company's portfolio
rationalization initiatives, recorded in COGS, $1 million of severance and other employee
benefit costs related to the GCP, recorded in SG&A, and
$1 million of acquisition and
integration costs related to the acquisition of IOI Loders Croklaan
(Loders), included in SG&A.
Milling Products
EBIT for the nine month ended September 30, 2019 included
$16 million of impairment charges at
certain facilities subject to the Company's portfolio
rationalization initiatives, recorded in COGS, and a $9 million gain related to an arbitration
settlement in the U.S.
Corporate and Other
EBIT for the nine months ended September 30, 2020 included
$5 million of severance and other
employee benefit costs related to the GCP, recorded in SG&A,
and $66 million in charges, primarily
related to a provision against an aged receivable dating from 2015
that is now deemed uncollectable due to an anticipated legal
settlement, of which $51 million was
recorded in SG&A, and $15 million
was recorded in Other income (expense) - net. Net Income for the
nine months ended September 30, 2020 also included a
$21 million income tax benefit
related to the reversal of a deferred tax asset valuation allowance
in Europe.
EBIT for the nine months ended September 30, 2019 included
$21 million of severance and other
employee benefit costs related to the GCP, included in SG&A,
$2 million of acquisition and
integration costs related to the acquisition of IOI Loders
Croklaan, included in SG&A, and $22
million of impairment charges related to the relocation of
the Company's global headquarters, recorded in SG&A. Net Income
also included income tax benefits of $30
million for the nine months ended September 30, 2019,
of which $19 million related to the
favorable resolution of uncertain tax positions in Asia, and $11
million related to the lapse of statutes of limitations on
unrecognized tax benefits in Europe.
Non-core Segments
Sugar & Bioenergy
EBIT for the nine months ended September 30, 2019 included
$1,524 million of impairment charges,
recorded in COGS, and $79 million of
foreign currency losses on intercompany loans no longer classified
as permanently invested, recorded in Foreign exchange gains
(losses). Both such items related to the classification of the
Company's Brazilian sugar and bioenergy operations as held for
sale. EBIT for the nine months ended September 30, 2019
also included restructuring charges of $4
million, recorded in COGS.
|
• Consolidated Earnings Data
(Unaudited)
|
|
Quarter
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
(US$ in millions,
except per share data)
|
2020
|
2019
|
|
2020
|
2019
|
|
Net sales
|
$
|
10,159
|
|
$
|
10,323
|
|
|
$
|
28,794
|
|
$
|
30,357
|
|
|
Cost of goods
sold
|
(9,557)
|
|
(11,301)
|
|
|
(26,913)
|
|
(30,386)
|
|
|
Gross
profit
|
602
|
|
(978)
|
|
|
1,881
|
|
(29)
|
|
|
Selling, general and
administrative expenses
|
(352)
|
|
(329)
|
|
|
(993)
|
|
(969)
|
|
|
Foreign exchange
gains (losses)
|
54
|
|
(129)
|
|
|
75
|
|
(147)
|
|
|
Other income
(expense) – net
|
17
|
|
(4)
|
|
|
37
|
|
201
|
|
|
Income (loss) from
affiliates
|
35
|
|
8
|
|
|
(76)
|
|
21
|
|
|
EBIT attributable to
noncontrolling interest (a) (1)
|
(5)
|
|
(8)
|
|
|
(5)
|
|
(12)
|
|
|
Total Segment EBIT
(1)
|
351
|
|
(1,440)
|
|
|
919
|
|
(935)
|
|
|
Interest
income
|
5
|
|
8
|
|
|
18
|
|
22
|
|
|
Interest
expense
|
(56)
|
|
(86)
|
|
|
(195)
|
|
(249)
|
|
|
Income tax (expense)
benefit
|
(38)
|
|
28
|
|
|
(151)
|
|
(70)
|
|
|
Noncontrolling
interest share of interest and tax (a) (1)
|
—
|
|
2
|
|
|
3
|
|
3
|
|
|
Income (loss) from
continuing operations, net of tax
|
262
|
|
(1,488)
|
|
|
594
|
|
(1,229)
|
|
|
Income (loss) from
discontinued operations, net of tax
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
Net income (loss)
attributable to Bunge (1)
|
262
|
|
(1,488)
|
|
|
594
|
|
(1,229)
|
|
|
Convertible
preference share dividends
|
(8)
|
|
(8)
|
|
|
(25)
|
|
(25)
|
|
|
Adjustment of
redeemable noncontrolling interest
|
12
|
|
—
|
|
|
2
|
|
—
|
|
|
Net income (loss)
available to Bunge common shareholders -
basic and diluted
|
$
|
266
|
|
$
|
(1,496)
|
|
|
$
|
571
|
|
$
|
(1,254)
|
|
|
Add back convertible
preference share dividends (b)
|
8
|
|
—
|
|
|
25
|
|
—
|
|
|
Net income (loss)
available to Bunge common shareholders
- diluted
|
$
|
274
|
|
$
|
(1,496)
|
|
|
$
|
596
|
|
$
|
(1,254)
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share diluted attributable to
Bunge common shareholders
|
$
|
1.84
|
|
$
|
(10.57)
|
|
|
$
|
3.98
|
|
$
|
(8.87)
|
|
|
Weighted–average
common shares outstanding - diluted (b)
|
149
|
|
142
|
|
|
150
|
|
141
|
|
|
|
|
|
|
|
|
|
(a) The line items
"EBIT attributable to noncontrolling interest" and "Noncontrolling
interest share of interest and tax" when combined, represent
consolidated Net (income) loss attributable to noncontrolling
interests on a U.S. GAAP basis of presentation.
|
|
|
(b)
Approximately 8 million common shares that are issuable upon
conversion of the convertible preference shares were not dilutive
and not included in the weighted-average number of shares
outstanding for the three and nine month periods ended September
30, 2019. Accordingly, the related convertible preference share
dividends were excluded from Net income (loss) available to Bunge
common shareholders - diluted for the three and nine month periods
ended September 30, 2019.
|
|
• Condensed Consolidated Balance Sheets
(Unaudited)
|
|
September
30,
|
December
31,
|
|
(US$ in
millions)
|
2020
|
2019
|
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
291
|
|
$
|
320
|
|
|
Trade accounts
receivable, net
|
1,623
|
|
1,705
|
|
|
Inventories
(a)
|
6,463
|
|
5,038
|
|
|
Assets held for
sale
|
395
|
|
72
|
|
|
Other current
assets
|
4,729
|
|
3,113
|
|
|
Total current
assets
|
13,501
|
|
10,248
|
|
|
Property, plant and
equipment, net
|
3,720
|
|
4,132
|
|
|
Operating lease
assets
|
871
|
|
796
|
|
|
Goodwill and other
intangible assets, net
|
1,083
|
|
1,194
|
|
|
Investments in
affiliates
|
583
|
|
827
|
|
|
Other non-current
assets
|
1,003
|
|
1,120
|
|
|
Total
assets
|
$
|
20,761
|
|
$
|
18,317
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term
debt
|
$
|
1,610
|
|
$
|
771
|
|
|
Current portion of
long-term debt
|
509
|
|
507
|
|
|
Trade accounts
payable
|
2,708
|
|
2,842
|
|
|
Current operating
lease obligations
|
233
|
|
216
|
|
|
Liabilities held for
sale
|
283
|
|
4
|
|
|
Other current
liabilities
|
3,589
|
|
2,255
|
|
|
Total current
liabilities
|
8,932
|
|
6,595
|
|
|
Long-term
debt
|
4,419
|
|
3,716
|
|
|
Non-current operating
lease obligations
|
584
|
|
539
|
|
|
Other non-current
liabilities
|
972
|
|
1,040
|
|
|
Total
liabilities
|
14,907
|
|
11,890
|
|
|
Redeemable
noncontrolling interest
|
403
|
|
397
|
|
|
Total
equity
|
5,451
|
|
6,030
|
|
|
Total liabilities,
redeemable noncontrolling interest and equity
|
$
|
20,761
|
|
$
|
18,317
|
|
|
|
|
(a)
|
Includes readily
marketable inventories of $5,354 million and $3,934 million at
September 30, 2020 and December 31, 2019, respectively.
Of these amounts, $4,166 million and $2,589 million, respectively,
can be attributable to merchandising activities.
|
|
• Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
Nine Months Ended
September
30,
|
|
(US$ in
millions)
|
2020
|
2019
|
|
Operating
Activities
|
|
|
|
Net income (loss)
(1)
|
$
|
596
|
|
$
|
(1,220)
|
|
|
Adjustments to
reconcile net income (loss) to cash provided by (used for)
operating activities:
|
|
|
|
Foreign
exchange (gain) loss on net debt
|
(126)
|
|
152
|
|
|
Depreciation, depletion and amortization
|
323
|
|
428
|
|
|
Deferred
income tax (benefit)
|
51
|
|
(19)
|
|
|
Impairment charges
|
8
|
|
1,664
|
|
|
Other,
net
|
177
|
|
1
|
|
|
Changes in operating
assets and liabilities, excluding the effects of
acquisitions:
|
|
|
|
Trade
accounts receivable
|
(237)
|
|
(314)
|
|
|
Inventories
|
(1,679)
|
|
(55)
|
|
|
Secured
advances to suppliers
|
(296)
|
|
(302)
|
|
|
Trade
accounts payable and accrued liabilities
|
260
|
|
(298)
|
|
|
Advances
on sales
|
(119)
|
|
(172)
|
|
|
Net
unrealized (gain) loss on derivative contracts
|
173
|
|
(320)
|
|
|
Margin
deposits
|
(360)
|
|
145
|
|
|
Marketable securities
|
98
|
|
(309)
|
|
|
Beneficial interest in securitized trade receivables
|
(1,178)
|
|
(767)
|
|
|
Other,
net
|
181
|
|
73
|
|
|
Cash provided by (used for) operating activities
|
(2,128)
|
|
(1,313)
|
|
|
Investing
Activities
|
|
|
|
Payments made for
capital expenditures
|
(230)
|
|
(378)
|
|
|
Proceeds from
investments
|
270
|
|
373
|
|
|
Payments for
investments
|
(293)
|
|
(342)
|
|
|
Settlement of net
investment hedges
|
67
|
|
(45)
|
|
|
Proceeds from
beneficial interest in securitized trade receivables
|
1,164
|
|
800
|
|
|
Payments for
investments in affiliates
|
(14)
|
|
(9)
|
|
|
Other, net
|
16
|
|
25
|
|
|
Cash provided by (used for) investing activities
|
980
|
|
424
|
|
|
Financing
Activities
|
|
|
|
Net borrowings
(repayments) of short-term debt
|
683
|
|
1,069
|
|
|
Net proceeds
(repayments) of long-term debt
|
796
|
|
(27)
|
|
|
Proceeds from the
exercise of options for common shares
|
2
|
|
8
|
|
|
Repurchases of common
shares
|
(100)
|
|
—
|
|
|
Dividends paid to
common and preference shareholders
|
(237)
|
|
(237)
|
|
|
Other, net
|
(15)
|
|
(17)
|
|
|
Cash provided by (used for) financing activities
|
1,129
|
|
796
|
|
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
5
|
|
(7)
|
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
(14)
|
|
(100)
|
|
|
Cash and cash
equivalents and restricted cash - beginning of
period
|
322
|
|
393
|
|
|
Cash and cash
equivalents and restricted cash - end of period
|
$
|
308
|
|
$
|
293
|
|
- Definition and 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 and Adjusted Total Segment EBIT
Bunge uses segment earnings before interest and tax ("Segment
EBIT") to evaluate the operating performance of its individual
segments. Segment EBIT excludes EBIT attributable to noncontrolling
interests. Bunge also uses Core Segment EBIT, Non-Core Segment EBIT
and Total Segment EBIT to evaluate the operating performance of
Bunge's Core reportable segments, Non-Core reportable segments, and
Total reportable segments together with its corporate and other
activities, respectively. Core Segment EBIT is the aggregate of the
earnings before interest and taxes of each of Bunge's Agribusiness,
Edible Oil Products, Milling Products, and Fertilizer segments.
Non-Core Segment EBIT is the earnings before interest and taxes of
Bunge's Sugar & Bioenergy segment. Total Segment EBIT is the
aggregate of the earnings before interest and taxes of Bunge's Core
and Non-Core reportable segments, together with its corporate and
other activities.
Adjusted Core Segment EBIT, Adjusted Non-Core Segment EBIT, and
Adjusted Total Segment EBIT, are calculated by excluding temporary
mark-to-market timing differences as defined in note 3 below, and
certain gains and (charges), as described in "Additional Financial
Information" above, from Core Segment EBIT, Non-Core Segment EBIT,
and Total Segment EBIT, respectively.
Core Segment EBIT, Non-Core Segment EBIT, Total Segment EBIT,
Adjusted Core Segment EBIT, Adjusted Non-Core Segment EBIT, and
Adjusted Total Segment EBIT are non-GAAP financial measures and are
not intended to replace Net income (loss) attributable to Bunge,
the most directly comparable U.S. GAAP financial measure. Bunge's
management believes these non-GAAP measures are a useful measure of
its reportable segments' operating profitability, since the
measures allow for an evaluation of segment performance without
regard to their financing methods or capital structure. For this
reason, operating performance measures such as these non-GAAP
measures are widely used by analysts and investors in Bunge's
industries. These non-GAAP measures are 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.
Net Income (loss) attributable to Bunge to Adjusted Net
Income (loss) available for common shareholders
Adjusted Net Income (loss) excludes certain gains and (charges)
and temporary mark-to-market timing differences as defined in note
3 below, and is a non-GAAP financial measure. This measure is not a
measure of net income (loss) attributable to Bunge, the most
directly comparable U.S. GAAP financial measure. It should not be
considered as an alternative Net Income (loss) attributable to
Bunge, Net Income (loss) or any other measure of consolidated
operating results under U.S. GAAP. Adjusted Net income (loss)
is a useful measure of the Company's profitability.
We also have presented projected adjusted net income per common
share for 2020. This information is provided only on a non-GAAP
basis without reconciliation to projected net income per common
share for 2020, the mostly directly comparable GAAP measure, due to
the inability at this time to quantify certain amounts necessary
for such reconciliation, including but not limited to future market
price movements over the remainder of the year.
Below is a reconciliation of Net income attributable to Bunge,
to Total Segment EBIT, and Adjusted Total Segment EBIT:
|
Quarter
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
(US$ in
millions)
|
2020
|
2019
|
|
2020
|
2019
|
|
Net income (loss)
attributable to Bunge
|
$
|
262
|
|
$
|
(1,488)
|
|
|
$
|
594
|
|
$
|
(1,229)
|
|
|
Interest
income
|
(5)
|
|
(8)
|
|
|
(18)
|
|
(22)
|
|
|
Interest
expense
|
56
|
|
86
|
|
|
195
|
|
249
|
|
|
Income tax expense
(benefit)
|
38
|
|
(28)
|
|
|
151
|
|
70
|
|
|
Noncontrolling
interest share of interest and tax
|
—
|
|
(2)
|
|
|
(3)
|
|
(3)
|
|
|
Total Segment
EBIT
|
$
|
351
|
|
$
|
(1,440)
|
|
|
$
|
919
|
|
$
|
(935)
|
|
|
|
|
|
|
|
|
Agribusiness
EBIT
|
$
|
299
|
|
$
|
107
|
|
|
$
|
1,015
|
|
$
|
457
|
|
|
Edible Oil Products
EBIT
|
76
|
|
59
|
|
|
173
|
|
$
|
161
|
|
|
Milling
EBIT
|
16
|
|
14
|
|
|
64
|
|
$
|
61
|
|
|
Fertilizer
EBIT
|
29
|
|
22
|
|
|
53
|
|
$
|
30
|
|
|
Core Segment
EBIT
|
$
|
420
|
|
$
|
202
|
|
|
$
|
1,305
|
|
$
|
709
|
|
|
|
|
|
|
|
|
Corporate and Other
EBIT
|
$
|
(92)
|
|
$
|
(99)
|
|
|
$
|
(274)
|
|
$
|
(77)
|
|
|
|
|
|
|
|
|
Sugar & Bioenergy
EBIT
|
23
|
|
(1,543)
|
|
|
(112)
|
|
(1,567)
|
|
|
Non-Core Segment
EBIT
|
$
|
23
|
|
$
|
(1,543)
|
|
|
$
|
(112)
|
|
$
|
(1,567)
|
|
|
|
|
|
|
|
|
Total Segment
EBIT
|
$
|
351
|
|
$
|
(1,440)
|
|
|
$
|
919
|
|
$
|
(935)
|
|
|
Mark-to-market timing
difference
|
161
|
|
(25)
|
|
|
186
|
|
(47)
|
|
|
Certain (gains) &
charges
|
—
|
|
1,744
|
|
|
71
|
|
1,775
|
|
|
Adjusted Total
Segment EBIT
|
$
|
512
|
|
$
|
279
|
|
|
$
|
1,176
|
|
$
|
793
|
|
|
|
|
|
|
|
Below is a reconciliation of Net income attributable to Bunge,
to Adjusted Net income (loss):
|
Quarter
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
(US$ in millions,
except per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net income (loss)
attributable to Bunge
|
$
|
262
|
|
|
$
|
(1,488)
|
|
|
$
|
594
|
|
|
$
|
(1,229)
|
|
|
Adjustment for
Mark-to-market timing difference
|
126
|
|
|
(20)
|
|
|
146
|
|
|
(38)
|
|
|
Adjusted for certain
(gains) and charges:
|
|
|
|
|
|
|
|
|
Severance, employee benefit,
and other
|
—
|
|
|
8
|
|
|
3
|
|
|
22
|
|
|
Impairment
charges
|
—
|
|
|
107
|
|
|
—
|
|
|
121
|
|
|
Sugar restructuring
charges
|
—
|
|
|
1
|
|
|
—
|
|
|
4
|
|
|
Expired
indemnification asset
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
Gain on arbitration
settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
(7)
|
|
|
Acquisition
integration costs
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
Charges related to
assets classified as held for sale
|
—
|
|
|
1,603
|
|
|
—
|
|
|
1,603
|
|
|
Commercial claim
provision
|
—
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
Income tax (benefits)
charges and Interest
|
(21)
|
|
|
(30)
|
|
|
(21)
|
|
|
(30)
|
|
|
Adjusted Net
income (loss) available for common shareholders
|
$
|
367
|
|
|
$
|
192
|
|
|
$
|
788
|
|
|
$
|
460
|
|
|
Weighted-average
common shares outstanding - diluted, adjusted
(a)
|
149
|
|
|
150
|
|
|
150
|
|
|
150
|
|
|
Adjusted Net
income (loss) per common share - diluted
|
$
|
2.47
|
|
|
$
|
1.28
|
|
|
$
|
5.26
|
|
|
$
|
3.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - diluted
|
149
|
|
|
142
|
|
|
150
|
|
|
141
|
|
|
Adjustment for stock
options, restricted stock units, and convertible
preference shares
|
—
|
|
|
8
|
|
|
—
|
|
|
9
|
|
|
Weighted-average
common shares outstanding - diluted, adjusted
|
149
|
|
|
150
|
|
|
150
|
|
|
150
|
|
|
|
(a) Approximately
6 million and 8 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
quarters ended September 30, 2020 and 2019, respectively, and
approximately 6 million and 8 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 nine month periods ended September 30,
2020 and 2019, respectively.
|
|
(1)
|
A reconciliation of
Net income (loss) attributable to Bunge, to Net income (loss) is as
follows:
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
Net income (loss)
attributable to Bunge
|
$
|
594
|
|
|
$
|
(1,229)
|
|
|
|
|
|
EBIT attributable to
noncontrolling interest
|
5
|
|
|
12
|
|
|
|
|
|
Noncontrolling
interest share of interest and tax
|
(3)
|
|
|
(3)
|
|
|
|
|
|
Net income
(loss)
|
$
|
596
|
|
|
$
|
(1,220)
|
|
|
|
|
|
|
|
|
(2)
|
The Oilseed business
included in our Agribusiness segment consists of; global oilseed
processing activities, primarily 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 partially conducted through joint ventures.
|
|
|
|
|
|
The Grains business
included in our Agribusiness segment primarily consists of; 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;
logistical services for the 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.
|
|
|
|
|
|
(3)
|
Mark-to-market timing
difference comprises the estimated net temporary impact resulting
from unrealized period-end gains/losses associated with the fair
valuation of certain forward contracts, readily marketable
inventories (RMI), and related futures contracts associated with
our committed future operating capacity. The impact of these
mark-to-market timing differences, which is expected to reverse
over time due to the forward contracts, RMI, and related futures
contracts being part of an economically hedged position, is not
representative of the operating performance of our
business.
|
|
|
|
|
|
(4)
|
Dilutive share basis
difference - GAAP vs. Adjusted represents the impact of using
different weighted-average common shares outstanding in the
denominators of the respective EPS calculations. The use of
different denominators is necessary as, on a GAAP basis, the
Company was in a net loss position, and as such no additional
dilutive shares were included in the GAAP EPS calculation, as such
inclusion would be antidilutive. However, on an adjusted basis,
after excluding certain gains and charges, the Company is in an
adjusted net income position, which necessitates the inclusion of
additional dilutive shares associated with stock options,
restricted stock units, and shares issuable upon the conversion of
the convertible preference shares, in the Adjusted EPS
calculation.
|
|
|
|
|
|
(5)
|
In the reconciliation
of Net income (loss) per common share - diluted ("GAAP EPS") to
Adjusted Net income (loss) per common share - diluted ("Adjusted
EPS"), the item "Adjustment of redeemable noncontrolling interest"
represents the impact on GAAP EPS of a retained earnings adjustment
associated with the carrying amount of the redeemable
noncontrolling interest recorded in respect of our 70% ownership
interest in Loders. The carrying amount of redeemable
noncontrolling interests is the greater of: (i) the initial
carrying amount, increased or decreased for the noncontrolling
interests' share of net income or loss, equity capital
contributions and distributions or (ii) the redemption value. Any
resulting increases in the redemption value, in excess of the
initial carrying amount, increased or decreased for the
noncontrolling interests' share of net income or loss, equity
capital contributions and distributions, are affected by
corresponding charges against retained earnings. Additionally, any
such charges to retained earnings will affect Net income (loss)
available to Bunge common shareholders as part of Bunge's
calculation of GAAP EPS.
|
|
|
|
|
|
Bunge's management
excludes the "Adjustment of redeemable noncontrolling interest"
from its calculation of Adjusted EPS, on the basis that it is
independent of the Company's operations. However, such charges
reverse only to the extent that Loders' net income levels result in
the carrying amount of redeemable noncontrolling interests,
calculated as described above, exceeding the redemption
value.
|
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SOURCE Bunge Limited