Bunge Reports First Quarter Results
(Posted on 02/05/18)
Bunge Limited has reported a Q1 GAAP EPS of $(0.20); $(0.06) on an adjusted basis that includes $120 million of
negative mark-to-market on forward oilseed crushing contracts.
Higher Food and Ingredients results was driven by lower costs and stronger demand
Soren Schroder, Bunge's Chief Executive Officer, commented, "During the first quarter, we saw a
dramatic change in the global soy crush market environment as margins expanded significantly from
2017 levels. Our teams managed the rapidly changing environment well and positioned the company for
a strong performance for the balance of the year. In times like these, when trade flows and capacities
shift among regions, the value of our global footprint and capabilities are demonstrated. In Food &
Ingredients, results were better than expected with improvement in most regions. Looking ahead, we
expect significant growth in Company earnings and returns in 2018.
Schroder continued, “We closed on Loders Croklaan during the quarter, which now positions us as a
global leader in B2B oils, and when fully integrated will nearly double the size of our Edible Oils business.
We also strengthened our milling footprint in the U.S. with the acquisition of two corn masa mills. These
investments increase results from value added activities closer towards our targeted level of 35 percent.
In addition, we continue to progress towards the separation of our Brazilian sugarcane milling business.
We have recently secured debt financing for the business and are now in a position where the business
could operate on a stand-alone basis.
“We also made solid progress on our cost objectives. Our Global Competitiveness Program is on track
towards our target of $100 million this year. And, over the course of the year, we expect an additional $80
million of savings from industrial and supply chain initiatives."
The agribusiness environment improved dramatically from conditions seen last year with reduced
soybean supplies in Argentina and tightening global grain supplies, leading to increased volatility and
improved margins, especially in soy crushing.
In Grains, higher results were driven by global trading & distribution, which benefitted from increased
margins and effective risk management. Origination results were comparable to last year as improved
performance in Brazil, which benefitted from increased farmer commercialisation as local soy prices rose,
offset lower results in North America and Argentina.
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