Bunge Reports Fourth Quarter 2017 Results

WHITE PLAINS, N.Y., Feb. 14, 2018 /PRNewswire/ -- Bunge Limited (NYSE:BG)

    --  Q4 GAAP EPS of $(0.48) reflecting charges primarily related to
        restructuring and tax reform; $0.67 on an adjusted basis
    --  Agribusiness impacted by weak margins; Sugar & Bioenergy impacted by
        adverse weather
    --  Edible Oils finished the year strong with near record results
    --  Global Competitiveness Program exceeded expectations in 2017
    --  Expect Loders Croklaan acquisition to close in Q1
    --  2018 outlook includes year-over-year improvement in all segments



    Financial Highlights

                                                            Quarter Ended            Year Ended
                                                            December 31,            December 31,

    US$ in millions, except per share data              2017              2016    2017      2016
    --------------------------------------              ----              ----    ----      ----

    Net income (loss) attributable to Bunge                      $(60)                   $271              $160   $745


    Net income (loss) per common share from continuing         $(0.48)                  $1.83             $0.89  $5.07
    operations-diluted


    Net income (loss) per common share from continuing           $0.67                   $1.70             $1.94  $4.67
    operations-diluted, adjusted (a)


    Total Segment EBIT (a)                                         $55                    $403              $436 $1,143

    Certain gains & (charges) (b)                      (100)                   41                (141) 43

    Total Segment EBIT, adjusted (a)                              $155                    $362              $577 $1,100
                                                                  ====                    ====              ==== ======

    Agribusiness (c)                                               $78                    $237              $332   $782

    Oilseeds                                                       $34                    $134              $216   $407

    Grains                                                         $44                    $103              $116   $375

    Food & Ingredients (d)                                         $70                     $70              $223   $229

    Sugar & Bioenergy                                             $(8)                    $30                $3    $51

    Fertilizer                                                     $15                     $25               $19    $38
    ----------                                                     ---                     ---               ---    ---


    (a) Total Segment earnings before interest and tax ("Total
        Segment EBIT"); Total Segment EBIT, adjusted; net
        income (loss) per common share from continuing
        operations-diluted, adjusted; adjusted funds from
        operations and ROIC 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) Certain gains & (charges) included in Total Segment EBIT.
         See Additional Financial Information for detail.


    (c) See footnote 11 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, commented, "While industry headwinds persisted through the end of the year, we made good progress in 2017 towards our strategic objectives by taking proactive steps to improve our cost structure and create a more balanced business.

"Fourth quarter oilseed margins did not recover as quickly as expected, and sugarcane milling results were negatively impacted by a sustained period of rain late in the quarter. Food & Ingredients finished the year on a strong note with Edible Oils closing out a near-record year. Looking ahead, we are seeing positive signs that soy processing conditions are improving, supporting our expectation that all segments will show year-over-year earnings growth in 2018. We expect a soft first quarter with improving conditions throughout the remainder of the year."

Schroder continued, "Our Global Competitiveness Program is off to a strong start, putting us on a good trajectory to achieve our $250 million target by the end of 2019. We also delivered $110 million of industrial cost savings in 2017, exceeding our target by $10 million. In addition, we continue to work toward the separation of our sugarcane milling business and are in the process of exiting from our global sugar trading activities and our renewable oils joint venture.

"We expect our acquisition of Loders Croklaan to close during the first quarter. Loders will greatly advance our strategy to expand downstream into higher margin products closely tied to our global oils and crushing footprint. This will accelerate our move to become the leading global B2B edible oils company."

    --  Fourth Quarter Results

Agribusiness

Grains and Oilseeds results were lower than last year, as margins overall remained weak.

In Grains, results in North America were lower than expected, but higher than last year, primarily due to effective positioning, which helped overcome weaker structural margins and lower volumes due to increased exports out of South America. Lower origination results in South America were driven by the combination of weak margins and farmers' delayed pricing of 2018 crops. Results in global grain trading & distribution were similar to last year; however, margins remained under pressure due to limited dislocation opportunities.

In Oilseeds, structural processing margins overall remained depressed during the quarter, primarily due to an oversupply of soymeal in destinations. Compared to last year, higher soy crushing results in Brazil were more than offset by lower crushing results in Europe, Argentina and Asia. However, conditions improved toward the end of the quarter as Argentine crushers reduced production, bringing global soymeal supply into better balance with demand. This is having a particularly positive impact on soy crush margins in Western Europe and Vietnam. In the U.S., structural margins were good and generally as expected, but slightly lower than last year. Softseed processing results were lower than last year as higher results in Canada were more than offset by lower results in Europe. Results in global oilseeds trading & distribution were similar to last year.

Edible Oil Products

Edible Oils had a strong finish to the year. In North America, improved performance was driven by higher margins and lower costs. In Brazil, higher volume and lower costs were partially offset by lower margins as industry players continued to aggressively compete for price sensitive consumers. In Europe, margins and volumes benefitted from our new value-added acquisitions. In Asia, improved volumes and sales mix drove results with both India and China contributing strongly.

Milling Products

The decline in segment results was primarily in Brazil, where margins were negatively impacted by consumers trading down on value and where the small bakery channel continued to experience soft demand. Also impacting results in Brazil, was aggressive pricing by small mills, which increased production in response to the above average Brazilian wheat crop. In the U.S., margins and volumes were higher. In Mexico, results benefitted from higher volumes reflecting new customer wins. This was the third straight quarter of sequential volume improvement in Mexico and reflects a new quarterly high for the business.

Sugar & Bioenergy

Fourth quarter results in sugarcane milling were significantly below our expectations, primarily due to a sustained period of rain late in the quarter that reduced crush by approximately 700,000 metric tons, negatively impacting sales and unit costs. Compared to last year, the decline in sugarcane milling results was primarily due to lower ethanol and sugar prices, which were down on average by 15% and 18%, respectively, as well as reduced crush volume. Despite these headwinds, this marks the third straight year that full-year results in sugarcane milling were profitable and free cash flow positive. Trading & distribution results in the quarter were approximately breakeven compared to a loss last year. Results in the quarter were impacted by a $5 million loss from our renewable oils joint venture.

As discussed during the last quarter, we remain committed to the separation of our sugarcane milling business. We are also in the process of exiting our global sugar trading operation and are in late stage discussions to sell our interest in our renewable oils joint venture to our partner. Collectively, these two businesses negatively impacted 2017 Sugar & Bioenergy results by approximately $40 million.

Fertilizer

Higher volumes and lower costs in our Argentine fertilizer business were offset by a decrease in margins. Results in the fourth quarter 2016 had an $11 million benefit from the reversal of a provision related to tariffs on natural gas consumption.

Global Competitiveness Program

The Global Competitiveness Program ("GCP") announced in July 2017 is expected to rationalize Bunge's cost structure and reengineer the way we operate, reducing our 2017 addressable baseline SG&A of $1.35 billion to $1.1 billion by 2020.

The company reduced addressable SG&A by $40 million in 2017 as compared to the baseline, exceeding its $15 million target by approximately $25 million, and incurred $55 million of severance and program-related SG&A costs during the year.

Cash Flow

Cash generated by operations in the year ended December 31, 2017 was $1,006 million compared to cash generated of $1,904 million in 2016. Adjusted funds from operations was $884 million for the year ended December 31, 2017. Our cash cycle was down 3.5 days compared to last year, reflecting disciplined capital management. This allowed us to grow our volume by approximately 10 million metric tons while holding our working capital relatively constant with last year levels. Total capex of $662 million was $188 million below our original 2017 target of $850 million.

Income Taxes

Adjusting for all notable items, the effective tax rate for the year ended December 31, 2017 was approximately 13%. As a result of tax law changes in the U.S. and Argentina during the fourth quarter, we recognized a non-cash charge of $66 million, which included taxes on accumulated foreign earnings and withholding taxes related to the future repatriation of those earnings, partially offset by adjustments for deferred tax assets and liabilities.

    --  Outlook

In 2018, we will continue to focus on execution of our strategic priorities.

Savings from the Global Competitiveness Program are expected to total $100 million versus our 2017 addressable SG&A baseline. We expect an additional $80 million of savings in industrial and supply chain initiatives. Savings from these programs are reflected in the segment EBIT ranges below.

In Agribusiness, we are not expecting a quick turnaround; however, oilseed crush margins are showing signs of improvement. We are entering South American harvests with increased flexibility. We have reduced forward logistics and sales commitments in Brazil and Argentina, providing more optionality to adapt to farmer marketing and customer buying patterns. In each of the past two years, unusually low priced feed wheat and DDGS have taken share from soybean meal in feed formulations, negatively impacting soy crush margins. With soymeal more competitively priced and expectations that Argentine processors will crush in alignment with the pace of farmer selling, we see a better balance in the supply and demand of soymeal during the year. Based on these factors, which should improve origination and crush margins, we see segment EBIT improving to a range of $550 to $700 million. We expect results to be weighted to the second half of the year with a soft first quarter.

In Food & Ingredients, we expect segment results to improve sequentially as we progress through the year, resulting in EBIT of $260 to $280 million. Our outlook for year-over-year growth reflects increased volume of higher value-added products, growth in sales to key accounts and higher results in Brazil wheat milling. The EBIT range does not reflect contributions from Loders Croklaan, which we expect to close in the first quarter.

In Sugar & Bioenergy, we expect 2018 EBIT of $50 to $70 million. Results are expected to be seasonally weak in the first half of the year. We expect a loss of approximately $40 million in the first quarter, due to carrying over an exceptionally low inventory balance from 2017 into the intercrop period due to the reduced crush volume.

In Fertilizer, we expect EBIT of approximately $25 million.

Additionally, we expect the following for 2018 (excluding the Loders Croklaan acquisition): a tax rate range of 18% to 22% reflecting the impacts of U.S. and Argentina tax reform; net interest expense in the range of $225 to $245 million; capital expenditures of approximately $650 million, of which approximately $150 million is related to sugarcane milling; and depreciation, depletion and amortization of approximately $625 million.

    --  Conference Call and Webcast Details

Bunge Limited's management will host a conference call at 8:00 a.m. Eastern on Wednesday, February 14, 2018 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 (877) 883-0383. If you are located outside the United States or Canada, dial (412) 902-6506. Please dial in five to 10 minutes before the scheduled start time. When prompted, enter confirmation code 2101973. The call will also be webcast live at www.bunge.com.

To access the webcast, go to "Webcasts and presentations" in the "Investors" section of the company's website. Select "Q4 2017 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 February 14, 2018, continuing through March 14, 2018. To listen to it, please dial (877) 344-7529 in the United States, (855) 669-9658 in Canada, or (412) 317-0088 in other locations. When prompted, enter confirmation code 10115948. A replay will also be available in "Past events" at "Webcasts and presentations" in the "Investors" section of the company's website.

    --  Website Information

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.

    --  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 32,000 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 statements include our expectations regarding industry trends and our future financial performance, the completion and timing of acquisitions and dispositions, our assumptions and expectations for the Global Competitiveness Program and other efficiency initiatives and similar statements that are not historical facts. These forward-looking statements 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, 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 quarters ended December 31, 2017 and 2016.


    (US$ in millions, except per share data)                    Net Income (Loss)           Earnings               Total Segment

                                                                 Attributable to            Per Share                 EBIT(7)

                                                                      Bunge                  Diluted
    ---                                                               -----

    Quarter Ended December 31,                                 2017      2016       2017  2016      2017 2016
    --------------------------                                 ----      ----       ----  ----      ---- ----


    Agribusiness: (1)                                                  $(42)                     $71                    $(0.29)                 $0.48           $(52)           $105
                                                                        ----                      ---                     ------                  -----            ----            ----

    Severance, employee benefit, and other costs               (29)                  -        (0.20)                -            (42)               -

    Impairment charges                                         (19)               (15)        (0.13)           (0.10)            (19)            (15)

    Gain on disposition of equity interests/subsidiaries          6                  86           0.04             0.58                9              120


    Edible Oil Products: (2)                                           $(18)              $        -                   $(0.13)           $         -          $(22)     $        -
                                                                        ----             ---      ---                    ------          ---       ---           ----    ---      ---

    Severance, employee benefit, and other costs                (9)                  -        (0.06)                -            (13)               -

    Acquisition costs                                           (9)                  -        (0.07)                -             (9)               -


    Milling Products: (3)                                               $(3)              $        -                   $(0.02)           $         -           $(5)     $        -
                                                                         ---             ---      ---                    ------          ---       ---            ---    ---      ---

    Severance, employee benefit, and other costs                (3)                  -        (0.02)                -             (5)               -


    Sugar & Bioenergy: (4)                                              $(4)                   $(53)                   $(0.03)               $(0.35)           $(5)          $(55)
                                                                         ---                     ----                     ------                 ------             ---            ----

    Severance, employee benefit, and other costs                (2)                  -        (0.02)                -             (3)               -

    Impairment charges                                          (4)               (42)        (0.03)           (0.28)             (4)            (44)

    Indirect tax credits                                          8                   -          0.06                -               8                -

    Sugar restructuring charges                                 (6)                (3)        (0.04)           (0.02)             (6)             (3)

    Provision for long-term receivables in Brazil                 -                (8)             -          (0.05)               -             (8)


    Fertilizer: (5)                                                    $(10)                    $(6)                   $(0.07)               $(0.04)          $(16)           $(9)
                                                                        ----                      ---                     ------                 ------            ----             ---

    Severance, employee benefit, and other costs                (9)                  -        (0.06)                -            (14)               -

    Impairment charges                                          (1)                (6)        (0.01)           (0.04)             (2)             (9)


    Interest and Income Taxes: (6)                                     $(86)                      $5                    $(0.61)                 $0.04     $         -     $        -
                                                                        ----                      ---                     ------                  -----   ---       ---   ---      ---

    Income tax benefits (charges)                              (86)                (5)        (0.61)           (0.03)               -               -

    Reversal of interest related to ICMS tax credits in Brazil    -                 10              -            0.07                -               -


    Total                                                             $(163)                     $17                    $(1.15)                 $0.13          $(100)            $41
    -----                                                              -----                      ---                     ------                  -----           -----             ---

The following table provides 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 years ended December 31, 2017 and 2016.


    (US$ in millions, except per share data)                    Net Income (Loss)           Earnings               Total Segment

                                                                 Attributable to            Per Share                 EBIT(7)

                                                                      Bunge                  Diluted
    ---                                                               -----

    Year Ended December 31,                                    2017      2016       2017  2016      2017 2016
    -----------------------                                    ----      ----       ----  ----      ---- ----


    Agribusiness: (1)                                                  $(61)                     $63                    $(0.43)                 $0.43           $(76)            $93
                                                                        ----                      ---                     ------                  -----            ----             ---

    Severance, employee benefit, and other costs               (33)                  -        (0.23)                -            (49)               -

    Impairment charges                                         (34)               (23)        (0.24)           (0.15)            (36)            (27)

    Gain on disposition of equity interests/subsidiaries          6                  86           0.04             0.58                9              120


    Edible Oil Products: (2)                                           $(21)              $        -                   $(0.15)           $         -          $(26)     $        -
                                                                        ----             ---      ---                    ------          ---       ---           ----    ---      ---

    Severance, employee benefit, and other costs               (11)                  -        (0.07)                -            (16)               -

    Impairment charges                                          (1)                  -        (0.01)                -             (1)               -

    Acquisition costs                                           (9)                  -        (0.07)                -             (9)               -


    Milling Products: (3)                                               $(5)                      $9                    $(0.04)                 $0.06            $(8)            $14
                                                                         ---                      ---                     ------                  -----             ---             ---

    Severance, employee benefit, and other costs                (5)                  -        (0.04)                -             (7)               -

    Impairment charges                                            -                  -             -               -             (1)               -

    Brazilian wheat import tax contingency                        -                  9              -            0.06                -              14


    Sugar & Bioenergy: (4)                                             $(14)                   $(53)                   $(0.10)               $(0.35)          $(15)          $(55)
                                                                        ----                     ----                     ------                 ------            ----            ----

    Severance, employee benefit, and other costs                (3)                  -        (0.02)                -             (4)               -

    Impairment charges                                          (5)               (42)        (0.04)           (0.28)             (5)            (44)

    Indirect tax credits                                         16                   -          0.11                -              16                -

    Sugar restructuring charges                                (22)                (3)        (0.15)           (0.02)            (22)             (3)

    Provision for long-term receivables in Brazil                 -                (8)             -          (0.05)               -             (8)


    Fertilizer: (5)                                                    $(10)                    $(6)                   $(0.07)               $(0.04)          $(16)           $(9)
                                                                        ----                      ---                     ------                 ------            ----             ---

    Severance, employee benefit, and other costs                (9)                  -        (0.06)                -            (14)               -

    Impairment charges                                          (1)                (6)        (0.01)           (0.04)             (2)             (9)


    Interest and Income Taxes: (6)                                     $(37)                     $44                    $(0.26)                 $0.30     $         -     $        -
                                                                        ----                      ---                     ------                  -----   ---       ---   ---      ---

    Income tax benefits (charges)                              (37)                 34         (0.26)             0.23                -               -

    Reversal of interest related to ICMS tax credits in Brazil    -                 10              -            0.07                -               -


    Total                                                             $(148)                     $57                    $(1.05)                 $0.40          $(141)            $43
    -----                                                              -----                      ---                     ------                  -----           -----             ---


    Consolidated Earnings Data (Unaudited)


                                                                                                                                                                        Quarter Ended                         Year Ended
                                                                                                                                                                         December 31,                        December 31,

    (US$ in millions, except per share data)                                                                                                                        2017        2016         2017          2016
    ---------------------------------------                                                                                                                         ----        ----         ----          ----

    Net sales                                                                                                                                                               $11,605                              $11,799                              $45,794      $42,679

    Cost of goods sold                                                                                                                                          (11,146)               (11,095)                (44,030)                  (40,269)
                                                                                                                                                                 -------                 -------                  -------                   -------

    Gross profit                                                                                                                                                     459                     704                    1,764                     2,410

    Selling, general and administrative expenses                                                                                                                   (399)                  (345)                 (1,445)                  (1,286)

    Foreign exchange gains (losses)                                                                                                                                 (13)                   (17)                      95                       (8)

    Other income (expense) - net                                                                                                                                      12                      14                       49                        12

    Gain on disposition of equity interests/subsidiaries                                                                                                               9                     122                        9                       122

    Equity investment impairments                                                                                                                                    (4)                   (59)                    (17)                     (59)

    Intangible asset impairment                                                                                                                                        -                      -                       -                     (12)

    EBIT attributable to noncontrolling interest (a) (8)                                                                                                             (9)                   (16)                    (19)                     (36)
                                                                                                                                                                     ---                     ---                      ---                       ---

    Total Segment EBIT (7)                                                                                                                                            55                     403                      436                     1,143

    Interest income                                                                                                                                                    9                      14                       38                        51

    Interest expense                                                                                                                                                (72)                   (45)                   (263)                    (234)

    Income tax (expense) benefit (6)                                                                                                                                (54)                  (102)                    (56)                    (220)

    Noncontrolling interest share of interest and tax (a) (8)                                                                                                          2                       2                        5                        14
                                                                                                                                                                     ---                     ---                      ---                       ---

    Income (loss) from continuing operations, net of tax                                                                                                            (60)                    272                      160                       754

    Income (loss) from discontinued operations, net of tax                                                                                                             -                    (1)                       -                      (9)
                                                                                                                                                                     ---                    ---                      ---                      ---

    Net income (loss) attributable to Bunge (8)                                                                                                                     (60)                    271                      160                       745

    Convertible preference share dividends and other obligations                                                                                                     (9)                    (9)                    (34)                     (36)

    Net income (loss) available to Bunge common shareholders                                                                                                                  $(69)                                $262                                 $126         $709
                                                                                                                                                                               ====                                 ====                                 ====         ====


    Net income (loss) per common share diluted attributable to Bunge
    common shareholders (9)

    Continuing operations                                                                                                                                                   $(0.48)                               $1.83                                $0.89        $5.07

    Discontinued operations                                                                                                                                            -                 (0.01)                       -                   (0.06)

    Net income (loss) per common share - diluted                                                                                                                            $(0.48)                               $1.82                                $0.89        $5.01
                                                                                                                                                                             ======                                =====                                =====        =====

    Weighted-average common shares outstanding - diluted                                                                                                             141                     148                      141                       148
                                                                                                                                                                     ---                     ---                      ---                       ---



    (a) The line items "EBIT attributable to noncontrolling interest" and "Noncontrolling interest share of interest and tax" when combined, represent consolidated Net (income) loss attributed to noncontrolling interests on a U.S. GAAP basis of presentation.


    Consolidated Segment Information (Unaudited)


    Set forth below is a summary of certain earnings data and volumes by reportable segment.


                                                                                                   Quarter Ended            Year Ended
                                                                                                    December 31,           December 31,

    (US$ in millions, except volumes)                                                          2017        2016     2017 2016
    --------------------------------                                                           ----        ----     ---- ----

    Volumes (in thousands of metric tons):

    Agribusiness                                                                             34,343              32,829         142,855  134,605

    Edible Oil Products                                                                       2,050               1,883           7,731    6,989

    Milling Products                                                                          1,160               1,103           4,460    4,498

    Sugar & Bioenergy                                                                         2,712               2,504           9,389    8,847

    Fertilizer                                                                                  499                 440           1,329    1,272


    Net sales:

    Agribusiness                                                                                        $7,904                  $8,191             $31,741     $30,061

    Edible Oil Products                                                                       2,141               1,901           8,018    6,859

    Milling Products                                                                            406                 404           1,575    1,647

    Sugar & Bioenergy                                                                         1,002               1,168           4,054    3,709

    Fertilizer                                                                                  152                 135             406      403

    Total                                                                                              $11,605                 $11,799             $45,794     $42,679
                                                                                                       =======                 =======             =======     =======

    Gross profit:

    Agribusiness                                                                                          $236                    $451                $932      $1,490

    Edible Oil Products                                                                         140                 123             499      439

    Milling Products                                                                             54                  57             209      269

    Sugar & Bioenergy                                                                            21                  51              99      159

    Fertilizer                                                                                    8                  22              25       53

    Total                                                                                                 $459                    $704              $1,764      $2,410
                                                                                                          ====                    ====              ======      ======

    Selling, general and administrative expenses:

    Agribusiness                                                                                        $(225)                 $(195)             $(810)     $(706)

    Edible Oil Products                                                                       (104)               (82)          (362)   (320)

    Milling Products                                                                           (36)               (30)          (139)   (127)

    Sugar & Bioenergy                                                                          (28)               (32)          (115)   (112)

    Fertilizer                                                                                  (6)                (6)           (19)    (21)

    Total                                                                                               $(399)                 $(345)           $(1,445)   $(1,286)
                                                                                                         =====                   =====             =======     =======

    Foreign exchange gains (losses):

    Agribusiness                                                                                          $(8)                  $(20)                $85        $(7)

    Edible Oil Products                                                                         (1)                  1               3      (1)

    Milling Products                                                                            (2)                (2)            (3)     (7)

    Sugar & Bioenergy                                                                             1                   4              11        9

    Fertilizer                                                                                  (3)                  -            (1)     (2)

    Total                                                                                                $(13)                  $(17)                $95        $(8)
                                                                                                          ====                    ====                 ===         ===

    Segment EBIT:

    Agribusiness                                                                                           $26                    $342                $256        $875

    Edible Oil Products                                                                          28                  46             126      112

    Milling Products                                                                             15                  24              63      131

    Sugar & Bioenergy                                                                          (13)               (25)           (12)     (4)

    Fertilizer                                                                                  (1)                 16               3       29

    Total Segment EBIT (7)                                                                                 $55                    $403                $436      $1,143
                                                                                                           ===                    ====                ====      ======


    Condensed Consolidated Balance Sheets (Unaudited)


                                       December 31,   December 31,

    (US$ in millions)                          2017            2016
    ----------------                           ----            ----

    Assets

    Cash and cash
     equivalents                                              $601            $934

    Time deposits under
     trade structured
     finance program                              -                    64

    Trade accounts
     receivable, net                          1,501                  1,676

    Inventories (10)                          5,074                  4,773

    Other current assets                      3,227                  3,645
                                              -----                  -----

    Total current assets                     10,403                 11,092

    Property, plant and
     equipment, net                           5,310                  5,099

    Goodwill and other
     intangible assets,
     net                                        838                    709

    Investments in
     affiliates                                 461                    373

    Time deposits under
     trade structured
     finance program                            315                    464

    Other non-current
     assets                                   1,544                  1,451

    Total assets                                           $18,871         $19,188
                                                           =======         =======


    Liabilities and Equity

    Short-term debt                                           $304            $257

    Current portion of
     long-term debt                              15                    938

    Letter of credit
     obligations under
     trade structured
     finance program                            315                    528

    Trade accounts payable                    3,395                  3,485

    Other current
     liabilities                              2,186                  2,476
                                              -----                  -----

    Total current
     liabilities                              6,215                  7,684

    Long-term debt                            4,160                  3,069

    Other non-current
     liabilities                              1,139                  1,092
                                              -----                  -----

    Total liabilities                        11,514                 11,845

    Total equity                              7,357                  7,343

    Total liabilities and
     equity                                                $18,871         $19,188
                                                           =======         =======


    Condensed Consolidated Statements of Cash Flows (Unaudited)


                                                     Year Ended
                                                    December 31,

    (US$ in millions)                           2017      2016
    ----------------                            ----      ----

    Operating Activities

    Net income (8)                                       $174           $767

    Adjustments to reconcile net
     income (loss) to cash provided
     by (used for) operating
     activities:

       Impairment charges                         52                 87

       Foreign exchange (gain) loss on
        net debt                                  21                 80

       Depreciation, depletion and
        amortization                             609                547

       Deferred income tax                      (23)               126

       Other, net                                 72               (50)

    Changes in operating assets and
     liabilities, excluding the
     effects of acquisitions:

       Trade accounts receivable                  95              (131)

       Inventories                             (130)             (269)

       Secured advances to suppliers             172                 38

       Trade accounts payable and
        accrued liabilities                       50                560

       Advances on sales                          11                 36

       Net unrealized gain (loss) on
        derivative contracts                     105               (84)

       Margin deposits                           (5)               199

       Marketable securities                   (128)                76

       Other, net                               (69)              (78)
                                                 ---                ---

        Cash provided by (used for)
         operating activities                  1,006              1,904

    Investing Activities

    Payments made for capital
     expenditures                              (662)             (784)

    Acquisitions of businesses (net
     of cash acquired)                         (369)              (34)

    Settlement of net investment
     hedges                                     (20)             (375)

    Proceeds from investments                    961                802

    Payments for investments                   (944)             (553)

    Payments for investments in
     affiliates                                (126)              (40)

    Other, net                                   (2)                58
                                                 ---                ---

        Cash provided by (used for)
         investing activities                (1,162)             (926)

    Financing Activities

    Net borrowings (repayments) of
     short-term debt                              42              (255)

    Net proceeds (repayments) of
     long-term debt                               44                316

    Repurchases of common shares                   -             (200)

    Proceeds from the exercise of
     options for common shares                    59                  -

    Dividends paid                             (297)             (282)

    Other, net                                  (28)              (67)
                                                 ---                ---

        Cash provided by (used for)
         financing activities                  (180)             (488)

    Effect of exchange rate changes
     on cash and cash equivalents                  3                 33
                                                 ---                ---

    Net increase (decrease) in cash
     and cash equivalents                      (333)               523

    Cash and cash equivalents,
     beginning of period                         934                411

    Cash and cash equivalents, end of
     period                                              $601           $934
                                                         ====           ====

    --  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 Total Segment EBIT, adjusted

Bunge uses total segment earnings before interest and taxes ("Total Segment EBIT") to evaluate Bunge's operating performance. Total Segment EBIT is the aggregate of each of our five reportable segments' earnings before interest and taxes. Total Segment EBIT, adjusted, is calculated by excluding certain gains and charges as described above in "Additional Financial Information" from Total Segment EBIT. Total Segment EBIT and Total Segment EBIT, adjusted 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.

Below is a reconciliation of Net income attributable to Bunge to Total Segment EBIT, adjusted:


                                                              Quarter Ended          Year Ended
                                                               December 31,         December 31,

    (US$ in millions)                                      2017      2016     2017 2016
    ----------------                                       ----      ----     ---- ----

    Net income (loss) attributable to Bunge                        $(60)                 $271            $160   $745

    Interest income                                         (9)             (14)         (38)    (51)

    Interest expense                                         72                45           263      234

    Income tax expense (benefit)                             54               102            56      220

    (Income) loss from discontinued operations, net of tax    -                1             -       9

    Noncontrolling interest share of interest and tax       (2)              (2)          (5)    (14)

    Total Segment EBIT                                       55               403           436    1,143

    Certain (gains) and charges                             100              (41)          141     (43)

    Total Segment EBIT, adjusted                                    $155                  $362            $577 $1,100
                                                                    ====                  ====            ==== ======

    --  Net Income (loss) per common share from continuing operations-diluted,
        adjusted

Net income (loss) per common share from continuing operations-diluted, adjusted, excludes certain gains and charges and discontinued operations and is a non-GAAP financial measure. This measure 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. Net income (loss) per common share from continuing operations-diluted, adjusted is a useful measure of the Company's profitability.

Below is a reconciliation of Net income attributable to Bunge to Net income (loss) - adjusted (excluding certain gains & charges and discontinued operations).


                                                                 Quarter Ended               Year Ended
                                                                  December 31,              December 31,

    (US$ in millions, except per share data)                  2017             2016       2017              2016
    ---------------------------------------                   ----             ----       ----              ----

    Net Income (loss) attributable to Bunge                           $(60)                      $271             $160   $745

    Adjusted for certain gains and charges:

         Severance, employee benefit, and other costs           52                      -                   61        -

         Impairment charges                                     24                     63                    41       71

         Sugar restructuring charges                             6                      3                    22        3

         Indirect tax credits                                  (8)                     -                 (16)       -

         Acquisition costs                                       9                      -                    9        -

         Brazilian wheat import tax contingency                  -                     -                    -     (9)

         Gain on disposition of equity interests/subsidiaries  (6)                  (86)                  (6)    (86)

         Provision for long-term receivables in Brazil           -                     8                     -       8

         Interest and Income tax charges (benefits)             86                    (5)                   37     (44)
                                                                                     ---                           ---

    Adjusted Net Income attributable to Bunge                  103                    254                   308      688

         Discontinued Operations                                 -                     1                     -       9

         Other Redeemable Obligations                            -                     -                    -     (2)

         Convertible Preference shares dividends               (9)                     -                 (34)       -
                                                                                                                  ---

    Net income (loss) - adjusted (excluding certain gains &             $94                       $255             $274   $695
    charges and discontinued operations)


    Weighted-average common shares outstanding - diluted       141                    148                   141      148

    Net income (loss) per common share - diluted, adjusted            $0.67                      $1.70            $1.94  $4.67
    (excluding certain gains & charges and discontinued
    operations)

Below is a reconciliation of Net income (loss) per common share from continuing operations - diluted, adjusted (excluding certain gains & charges and discontinued operations) to Net income (loss) per common share-diluted:


                                                                        Quarter Ended                Year Ended
                                                                        December 31,                December 31,
                                                                                                    ------------

                                                                    2017              2016        2017               2016
                                                                    ----              ----        ----               ----

    Continuing operations:

    Net income (loss) per common share - diluted adjusted                    $0.67                       $1.70               $1.94  $4.67
    (excluding certain gains & charges and discontinued
    operations)

    Certain gains & charges (see Additional Financial Information (1.15)                     0.13                (1.05)      0.40
    section)


    Net income (loss) per common share - continuing operations    (0.48)                     1.83                  0.89       5.07

    Discontinued operations:                                           -                   (0.01)                    -    (0.06)

    Net income (loss) per common share - diluted                           $(0.48)                      $1.82               $0.89  $5.01
                                                                            ======                       =====               =====  =====

    --  Severance, Employee Benefit and Other Costs

The following table summarizes the costs incurred as part of the Global Competitiveness Program and other associated cost reduction and strategic initiatives.


                                                   Quarter Ended December 31, 2017        Year Ended December 31, 2017

                                                Severance     Other   Total Costs      Severance        Other     Total Costs
                                                    and       Costs                       and           Costs
                                                 Employee                               Employee
                                              Benefit Costs                          Benefit Costs
                                              -------------                          -------------

    Global Competitiveness Program:

         Agribusiness                                           $23                    $7                                  $30      $27     $10   $37

         Edible Oil Products                              6                      2       8                                    6  4     10

         Milling Products                                 1                      1       2                                    2  1      3

         Sugar & Bioenergy                                1                      2       3                                    1  3      4

         Fertilizer                                       1                      -      1                                    1  -     1

    Costs included in Selling, general                          $32                   $12                                  $44      $37     $18   $55
    and administrative expenses

    Other associated cost reduction and
    strategic initiatives:

         Costs included in Cost of goods sold                   $20                $    -                                 $20      $22    $  -  $22

    Total GCP and Other costs                                   $52                   $12                                  $64      $59     $18   $77
                                                                ===                   ===                                  ===      ===     ===   ===

2017 baseline total SG&A was $1.45 billion. There was $100 million of SG&A determined not to be addressable through the GCP, leaving 2017 addressable baseline SG&A of $1.35 billion ("Addressable Baseline"). The items that are not addressable by the GCP relate to costs other than direct spending and personnel costs, such as amortization, bad debt charges and recoveries and financing fees and taxes.

GCP savings are determined by comparing Adjusted Actual Addressable SG&A to the Addressable Baseline. Adjusted Actual Addressable SG&A is equal to the total reported SG&A minus the items not addressable by the GCP, plus or minus items such as:

    --  GCP program costs which include severance and related employee costs,
        consulting and professional costs and other costs specifically
        designated to the program,
    --  Changes in inflation and foreign exchange rates as compared to
        Addressable Baseline assumptions,
    --  Perimeter changes relating to acquisitions and divestitures and
        corporate transactions,
    --  Changes in variable compensation relating to business performance as
        compared to the Addressable Baseline assumptions, and
    --  Identified investments in new or enhanced capabilities.

We expect to reduce Actual Addressable SG&A from the Addressable Baseline level of $1.35 billion to $1.1 billion by 2020, achieving $250 million in run-rate savings by the end of 2019.


    (1) Agribusiness:


               2017 fourth quarter EBIT includes
                charges related to the Company's Global
                Competitiveness Program of $(30)
                million [$(23) million for severance
                and other employee benefit costs and
                $(7) million for other program costs],
                all of which was included in Selling,
                general and administrative expenses.
                2017 fourth quarter EBIT also includes
                $(12) million for severance and other
                employee benefits related to other
                industrial initiatives recorded in Cost
                of goods sold.    Additionally, $(19)
                million of impairment charges
                [comprised of $(10) million associated
                with the sale of feedmills in China and
                $(9) million related to port assets in
                Poland] and a $9 million gain on the
                sale of a subsidiary in Brazil were
                recorded.  Of these amounts, $(3)
                million was included within Selling,
                general and administrative expenses.


               2016 fourth quarter EBIT includes $90
                million and $30 million gains related
                to disposition of equity interests of
                operations in Brazil and Asia,
                respectively, as well as a $(15)
                million impairment charge related to an
                equity investment in Asia.  Of these
                amounts, $0 million was included within
                Selling, general and administrative
                expenses.


               2017 full year EBIT includes charges
                related to the Company's Global
                Competitiveness Program of $(37)
                million [$(27) million for severance
                and other employee benefit costs and
                $(10) million for other program costs],
                all of which was included in Selling,
                general and administrative expenses.
                2017 full year EBIT also includes $(12)
                million for severance and other
                employee benefits related to other
                industrial initiatives recorded in Cost
                of goods sold.  Additionally, $(36)
                million of impairment charges
                [comprised of $(13) million for our
                palm oil plantation joint venture, $(4)
                million for on intangible assets
                related to patents, $(10) million
                associated with the sale of feedmills
                in China, and $(9) million related to
                port assets in Poland] and a $9 million
                gain on the sale of a subsidiary in
                Brazil were recorded. Of these amounts,
                $(7) million was included within
                Selling, general and administrative
                expenses.


               2016 full year EBIT includes a $90
                million and $30 million gain related to
                disposition of equity interests of
                operations in Brazil and Asia,
                respectively, as well as a $(15)
                million impairment charge related to an
                equity investment in Asia and $(12)
                million impairment charge related to
                remaining unamortized carrying value of
                certain patents in the United States.
                Of these amounts, $0 million was
                included within Selling, general and
                administrative expenses.


    (2) Edible Oil Products:


               2017 fourth quarter EBIT includes
                charges related to the Company's Global
                Competitiveness Program of $(8) million
                [$(6) million for severance and other
                employee benefit costs and $(2) million
                for other program costs], all of which
                was included in Selling, general and
                administrative expenses.  2017 fourth
                quarter EBIT also includes $(5) million
                for severance and other employee
                benefits related to other industrial
                initiatives recorded in Cost of goods
                sold.  Additionally, $(9) million of
                acquisition costs related to Loders
                were incurred, all of which were
                included within Selling, general and
                administrative expenses.


               2017 full year EBIT includes charges
                related to the Company's Global
                Competitiveness Program of $(10)
                million [$(6) million for severance and
                other employee benefit costs and $(4)
                million for other program costs], all
                of which was included in Selling,
                general and administrative expenses.
                2017 full year EBIT also includes $(6)
                million for severance and other
                employee benefits related to other
                industrial initiatives recorded in Cost
                of goods sold.  Additionally, $(1)
                million of impairment charges for
                intangible assets related to patents,
                and $(9) million of acquisition costs
                related to Loders were incurred.  Of
                these amounts, $(10) million was
                included within Selling, general and
                administrative expenses.


    (3) Milling Products:


               2017 fourth quarter EBIT includes
                charges related to the Company's Global
                Competitiveness Program of $(2) million
                [$(1) million for severance and other
                employee benefit costs and $(1) million
                for other program costs], all of which
                was included in Selling, general and
                administrative expenses.  2017 fourth
                quarter EBIT also includes $(3) million
                for severance and other employee
                benefits related to other industrial
                initiatives recorded in Cost of goods
                sold.


               2017 full year EBIT includes charges
                related to the Company's Global
                Competitiveness Program of $(3) million
                [$(2) million for severance and other
                employee benefit costs and $(1) million
                for other program costs], all of which
                was included in Selling, general and
                administrative expenses.  2017 full
                year EBIT also includes $(4) million
                for severance and other employee
                benefits related to other industrial
                initiatives recorded in Cost of goods
                sold.  Additionally, $(1) million of
                impairment charges for intangible
                assets related to patents were
                incurred.  Of these amounts, $(1)
                million was included within Selling,
                general and administrative expenses.


               2016 full year EBIT includes a gain of
                $14 million related to a wheat import
                tax contingency settlement in Brazil.
                Of these amounts, $0 million was
                included within Selling, general and
                administrative expenses.


    (4) Sugar & Bioenergy:


               2017 fourth quarter EBIT includes
                charges related to the Company's Global
                Competitiveness Program of $(3) million
                [$(1) million for severance and other
                employee benefit costs and $(2) million
                for other program costs], all of which
                was included in Selling, general and
                administrative expenses.  Additionally,
                $(4) million of impairment charges
                related to an equity investment in
                Brazil were incurred.


               2017 fourth quarter and full year
                charges also include Sugar
                restructuring charges of $(6) million
                and $(22) million, that were recorded
                in the quarter and year ended December
                31, 2017, respectively.   Of these
                amounts, $0 million and $(1) million,
                were included within Selling, general
                and administrative expenses during the
                quarter and year ended December 31,
                2017, respectively.  EBIT for the
                fourth quarter and year ended December
                31, 2017 also includes gains of $8
                million and $16 million, respectively,
                related to indirect tax credits.  Of
                these amounts, $0 million was included
                within Selling, general and
                administrative expenses.


               2017 full year EBIT includes charges
                related to the Company's Global
                Competitiveness Program of $(4) million
                [$(1) million for severance and other
                employee benefit costs and $(3) million
                for other program costs], all of which
                was included in Selling, general and
                administrative expenses].
                Additionally, $(5) million of
                impairment charges were incurred
                [comprised of $(4) million related to
                an equity investment in Brazil and $(1)
                million for intangible assets related
                to patents].  Of these amounts, $(1)
                million was included within Selling,
                general and administrative expenses.


               2016 fourth quarter and full year EBIT
                includes a $(44) million impairment
                charge of an equity investment in
                Brazil, an $(8) million provision for
                long-term receivables in Brazil, and a
                $(3) million restructuring charge.


    (5) Fertilizer:


               2017 fourth quarter and full year EBIT
                includes charges related to the
                Company's Global Competitiveness
                Program of $(1) million for severance
                and other employee benefit costs, all
                of which was included in Selling,
                general and administrative expenses.
                2017 fourth quarter and full year EBIT
                also includes $(13) million for
                severance and other employee benefits
                related to other industrial initiatives
                recorded in Cost of goods sold.
                Additionally, $(2) million of
                impairment and other charges related to
                the closure of a plant were incurred.
                Of these amounts, $0 million was
                included within Selling, general and
                administrative expenses.


                2016 fourth quarter and full year EBIT
                includes a $(9) million impairment
                charge related to property, plant and
                equipment in Argentina.


    (6) Interest and Income Taxes:


               2017 fourth quarter income tax benefits
                (charges) include charges for tax
                reform impacts in the U.S. and
                Argentina of $(66) million, and
                valuation allowances in Europe offset
                by a valuation allowance release in
                Asia, for a net charge of $(20)
                million.   Additionally, in the second
                quarter, a benefit of $32 million for
                the favorable resolution of an
                uncertain tax position in Asia and a
                benefit of $17 million as a result of a
                tax election in South America were
                recorded.


               2016 interest and income tax benefits
                (charges) of $(44) million include
                benefits of $60 million, net of
                reserves, relates to a change in a tax
                election in North America, recorded in
                the first quarter, $11 million tax
                credits in Europe recorded in the
                second quarter and $19 million to Sugar
                & Bioenergy deferred tax valuation
                allowance release recorded in the
                fourth quarter, offset by a charges of
                $(32) million and $(24) million for
                uncertain tax positions related to
                Asia, recorded in the first and fourth
                quarters, respectively.  Additionally,
                2016 interest expense and income tax
                benefits (charges) includes pre-tax
                interest benefits of $16 million ($10
                million after tax) related to the
                reversal of interest related to ICMS
                tax credits in Brazil resulting from a
                tax amnesty program recorded in the
                fourth quarter.


    Notes to Financial Tables:


    (7)                See Definition and Reconciliation of Non-GAAP Measures.


    (8)                 A reconciliation of Net income (loss) attributable to Bunge to Net income
                        (loss) is as follows:


                                                                                                       Year Ended
                                                                                                      December 31,

                                                                                                    2017           2016
                                                                                                    ----           ----

                       Net income (loss) attributable to Bunge                                               $160             $745

                       EBIT attributable to noncontrolling interest                                   19                   36

                       Noncontrolling interest share of interest and tax                             (5)                (14)

                       Net income (loss)                                                                     $174             $767
                                                                                                             ====             ====


    (9)                 Approximately 4 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 quarter and year ended
                        December 31, 2017. Additionally, 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 shares outstanding for the quarter and year ended
                        December 31, 2017.


                        Approximately 4 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 quarter and year ended
                        December 31, 2016.


    (10)                Includes readily marketable inventories of $4,056 million and $3,855
                        million at December 31, 2017 and 2016, respectively. Of these amounts,
                        $2,767 million and $2,657 million, respectively, can be attributable to
                        merchandising activities.


    (11)                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.

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SOURCE Bunge Limited