EX-99.1 3 a09-12936_3ex99d1.htm EX-99.1

 

Exhibit 99.1

Item 6.  Selected Financial Data

 

The following table sets forth our selected consolidated financial information for the periods indicated. You should read this information together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and with the consolidated financial statements and notes to the consolidated financial statements included elsewhere in this Current Report on Form 8-K.

 

Our consolidated financial statements are prepared in U.S. dollars and in accordance with generally accepted accounting principles in the United States (U.S. GAAP). The consolidated statements of income and cash flow data for each of the three years ended December 31, 2008, 2007 and 2006 and the consolidated balance sheet data as of December 31, 2008 and 2007 are derived from our audited consolidated financial statements included in this Current Report on Form 8-K. The consolidated statements of income and cash flow data for the years ended December 31, 2005 and 2004 and the consolidated balance sheet data as of December 31, 2006, 2005 and 2004 are derived from our audited consolidated financial statements that are not included in this Current Report on Form 8-K.

 

 

 

Year Ended December 31,

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

 

(US$ in millions)

 

Consolidated Statements of Income Data:

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

52,574

 

$

37,842

 

$

26,274

 

$

24,377

 

$

25,234

 

Cost of goods sold

 

(48,538

)

(35,327

)

(24,703

)

(22,806

)

(23,348

)

Gross profit

 

4,036

 

2,515

 

1,571

 

1,571

 

1,886

 

Selling, general and administrative expenses

 

(1,613

)

(1,359

)

(978

)

(956

)

(871

)

Interest income

 

214

 

166

 

119

 

104

 

103

 

Interest expense

 

(361

)

(353

)

(280

)

(231

)

(214

)

Foreign exchange (loss) gain

 

(749

)

217

 

59

 

(22

)

(31

)

Other income (expense)—net

 

10

 

15

 

31

 

22

 

18

 

Income from operations before income tax

 

1,537

 

1,201

 

522

 

488

 

891

 

Income tax (expense) benefit

 

(245

)

(310

)

36

 

82

 

(289

)

Income from operations after income tax

 

1,292

 

891

 

558

 

570

 

602

 

Equity in earnings of affiliates

 

34

 

33

 

23

 

31

 

13

 

Net income

 

1,326

 

924

 

581

 

601

 

615

 

Net income attributable to noncontrolling interest

 

(262

)

(146

)

(60

)

(71

)

(146

)

Net income attributable to Bunge

 

1,064

 

778

 

521

 

530

 

469

 

Convertible preference share dividends

 

(78

)

(40

)

(4

)

—

 

—

 

Net income available to common shareholders

 

$

986

 

$

738

 

$

517

 

$

530

 

$

469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

 

(US$, except outstanding share data)

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share — basic(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings to Bunge common shareholders

 

$

8.11

 

$

6.11

 

$

4.32

 

$

4.73

 

$

4.42

 

Earnings per common share — diluted(2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings to Bunge common shareholders

 

$

7.73

 

$

5.95

 

$

4.28

 

$

4.43

 

$

4.10

 

Cash dividends declared per common share

 

$

.740

 

$

.670

 

$

.630

 

$

.560

 

$

.480

 

Weighted average common shares outstanding—basic

 

121,527,580

 

120,718,134

 

119,566,423

 

112,131,739

 

106,015,869

 

Weighted average common shares outstanding—diluted(2)(3)

 

137,591,266

 

130,753,807

 

120,849,357

 

120,853,928

 

115,674,056

 

 

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Year Ended December 31,

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

 

(US$ in millions)

 

Consolidated Cash Flow Data:

 

 

 

 

 

 

 

 

 

 

 

Cash provided by (used for) operating activities

 

$

2,543

 

$

(411

)

$

(289

)

$

382

 

$

802

 

Cash used for investing activities

 

(1,106

)

(794

)

(611

)

(480

)

(824

)

Cash (used for) provided by financing activities

 

(1,146

)

1,762

 

891

 

21

 

(91

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

 

(US$ in millions)

 

Consolidated Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,004

 

$

981

 

$

365

 

$

354

 

$

432

 

Inventories(4)

 

5,653

 

5,924

 

3,684

 

2,769

 

2,636

 

Working capital

 

5,102

 

5,684

 

3,878

 

2,947

 

2,766

 

Total assets

 

20,230

 

21,991

 

14,347

 

11,446

 

10,907

 

Short-term debt, including current portion of long-term debt

 

551

 

1,112

 

610

 

589

 

681

 

Long-term debt

 

3,032

 

3,435

 

2,874

 

2,557

 

2,600

 

Mandatory convertible preference shares(2)

 

863

 

863

 

—

 

—

 

—

 

Convertible perpetual preference shares(2)

 

690

 

690

 

690

 

—

 

—

 

Common shares and additional paid-in-capital

 

2,850

 

2,761

 

2,691

 

2,631

 

2,362

 

Total equity

 

$

8,128

 

$

8,697

 

$

6,078

 

$

4,551

 

$

3,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

 

(in millions of metric tons)

 

Other Data:

 

 

 

 

 

 

 

 

 

 

 

Volumes:

 

 

 

 

 

 

 

 

 

 

 

Agribusiness

 

117.7

 

114.4

 

99.8

 

97.5

 

88.6

 

Fertilizer

 

11.1

 

13.1

 

11.6

 

11.5

 

11.6

 

Food products:

 

 

 

 

 

 

 

 

 

 

 

Edible oil products

 

5.7

 

5.5

 

4.8

 

4.3

 

4.7

 

Milling products

 

3.9

 

4.0

 

3.9

 

3.9

 

4.0

 

Total food products

 

9.6

 

9.5

 

8.7

 

8.2

 

8.7

 

Total volume

 

138.4

 

137.0

 

120.1

 

117.2

 

108.9

 

 

(1)                                  Earnings per common share basic is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period.

 

(2)                                  Bunge has 862,455 5.125% cumulative mandatory convertible preference shares outstanding as of December 31, 2008. The annual dividend on each mandatory convertible preference share is $51.25, payable quarterly. Each mandatory convertible preference share has an initial liquidation preference of $1,000, plus accumulated and unpaid dividends. As a result of adjustments to the initial conversion rates because cash dividends paid on Bunge Limited’s common shares exceeded certain specified thresholds, each mandatory convertible preference share will automatically convert on December 1, 2010 into between 8.2208 and 9.7005 Bunge Limited common shares. Each mandatory convertible preference share is also convertible at any time before December 1, 2010, at the holder’s option, into 8.2208 Bunge Limited common shares. These conversion rates are subject to certain additional anti-dilutive adjustments. Bunge also has 6,900,000 4.875% cumulative convertible perpetual preference shares outstanding. Each cumulative convertible preference share has an initial liquidation preference of $100 per share plus accumulated and unpaid dividends up to a maximum of an additional $25 per share. As a result of adjustments made to the initial conversion price because cash dividends paid on Bunge Limited’s common shares exceeded certain specified thresholds, each cumulative convertible preference share is convertible, at the holder’s option, at any time, into approximately 1.0854 Bunge Limited common shares (7,488,970 Bunge Limited common shares), subject to certain additional anti-dilution adjustments. The calculation of diluted earnings per common share for the year ended December 31, 2006 does not include the weighted

 

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average common shares that were issuable upon conversion of the preference shares as they were not dilutive for such period.

 

(3)                                  In October 2005, Bunge announced its intention to redeem for cash the remaining approximately $242 million principal amount outstanding of its 3.75% convertible notes. In accordance with the terms of the notes, substantially all of the then outstanding convertible notes were converted into 7,532,542 common shares of Bunge Limited at the option of the holders prior to the redemption date of November 22, 2005. The calculation of diluted earnings per common share for the year ended December 31, 2005 includes the weighted average common shares that were issuable upon conversion of the convertible notes through the date of redemption. The calculation of diluted earnings per common share for the year ended December 31, 2004 includes the weighted average common shares that were issuable upon conversion of the convertible notes during this period.

 

(4)                                  Included in inventories were readily marketable inventories of $2,741 million, $3,358 million, $2,325 million, $1,534 million and $1,264 million at December 31, 2008, 2007, 2006, 2005 and 2004, respectively. Readily marketable inventories are agricultural commodity inventories that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms.

 

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