Bunge Limited Shows Improved Second Quarter Results; Income From Operations Up 81%; Gross Profit Up 30%.Business Editors WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Aug. 10, 2001 Bunge Limited Bunge Limited NYSE: BG (formerly Bunge International and prior to that Bunge Y Born) is a multinational food conglomerate. As well as being a leading global soybean exporter it is also involved in food processing, grain trading, and fertilizer. (NYSE NYSE See: New York Stock Exchange :BG) net income grew to $23 million, or $.36 per share, for the second quarter of 2001, compared to a net loss of $7 million, or $.11 per share, for the second quarter of 2000. In addition: - Income from operations grew by 81% - Gross profit increased by 30% - Non-operating income (expense) - net declined by 9% - Adjusted Net Financial Debt declined by $234 million from December 31, 2000 Improved operating results were primarily due to the expansion of oilseed oilseed the seeds of the linseed plant, rapeseed or canola, peanut, safflower (Carthamus tinctorius); biproduct oils from seeds include corn, grapeseed, olive, sesame, sunflower. processing margins, lower raw material costs in our fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. segment, increased sales volumes in our soy ingredients and nutraceuticals businesses and the ongoing effects of our cost reduction initiatives. The decline in our non-operating income (expense) - net resulted from lower interest and foreign exchange expenses due to lower short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. and a financial restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). that began in the fourth quarter of last year. During the first half of 2001, Adjusted Net Financial Debt declined due to increases in operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. and reductions in operating working capital particularly accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and recoverable taxes. A consolidated summary of financial data is included below.
Consolidated Summary of Financial Results and Other Financial Data
(Unaudited):
(US$ in millions, except volumes, per share data and ratios)
Second Quarter Ended Percent
06/30/2001 06/30/2000 Change
----------------- ---------------- -----------
Volumes (in millions
of metric tons) 17.8 17.6 1%
Net Sales $ 2,689 $ 2,284 18%
Gross Profit 210 162 30%
Income from Operations 98 54 81%
Net Income (Loss) 23 (7) 429%
Net Income (Loss)
Per Share .36 (.11) 427%
EBITDA (1) 138 94 47%
Adjusted EBITDA (2) 128 84 52%
Six Months Ended Percent
06/30/2001 06/30/2000 Change
----------------- ---------------- -----------
Volumes (in millions
of metric tons) 31.5 28.4 11%
Net Sales $ 5,161 $ 4,289 20%
Gross Profit 366 256 43%
Income from Operations 172 68 153%
Net Income (Loss) 29 (15) 293%
Net Income (Loss)
Per Share .45 (.23) 296%
EBITDA (1) 250 131 91%
Adjusted EBITDA (2) 229 107 114%
----------------------------------------------------------------------
June 30, 2001 December 31, 2000
----------------- ----------------------
Operating Working
Capital (3) $ 564 $ 843
Readily Marketable
Inventories (4) 1,307 876
Total Assets 5,585 5,854
Adjusted Net
Financial Debt (5) 931 1,165
Shareholder's Equity
plus Minority
Interest in
Subsidiaries 1,508 1,682
Adjusted Net Financial
Debt to Shareholder's
Equity plus Minority
Interest in
Subsidiaries .62 .69
----------------------------------------------------------------------
(1) Earnings before interest, taxes, depreciation, amortization
("EBITDA") equals income from operations plus depreciation,
depletion and amortization.
(2) EBITDA less interest expense on readily marketable inventories
(3) Current assets (excluding cash and cash equivalents, marketable
securities and readily marketable inventories) less current
liabilities (excluding short-term debt and current maturities of
long-term debt).
(4) Readily marketable inventories are agricultural commodities
inventories that are readily convertible to cash because of their
commodity characteristics, widely available markets and
international pricing mechanisms.
(5) Short-term debt, plus current maturities of long-term debt, plus
long-term debt less cash and cash equivalents, marketable
securities and readily marketable inventories.
About Bunge Bunge may refer to:
Bunge is an integrated, global agribusiness agribusiness Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts. and food company operating in the farm-to-consumer food chain with primary operations in North and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. and worldwide distribution capabilities. Cautionary Statement Concerning Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This document 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 a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "expect," "anticipate," "believe," "intend," "estimate" and "continue" and similar expressions. These forward-looking statements involve known and unknown 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 future results, causing them to differ materially from those expressed in our forward-looking statements: estimated demand for commodities and other products that we sell and use in our business; industry conditions, including the cyclicality of the agribusiness industry; economic conditions in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. and Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. ; and other economic, business, competitive and/or regulatory factors affecting our business generally. The forward-looking statements included in this document are made only as of the date of this document, 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . |
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