Bunge (BG) reported earnings on Wed 31 Oct 18 (b/o)

• Oct. 30: #15 

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Bunge beats by $0.13, misses on revs; will form strategic review committee of the board focused on enhancing shareholder value

Reports Q3 (Sep) earnings of $2.52 per share, $0.13 better than the S&P Capital IQ Consensus of $2.39; revenues fell 0.1% year/year to $11.41 bln vs the $11.95 bln S&P Capital IQ Consensus.

Outlook

• Business conditions are expected to remain favorable for the balance of 2018 and into 2019 driven by strong oilseeds processing margins and improving conditions in Edible Oils.
• In Agribusiness, we expect our full-year 2018 EBIT results to be in the upper half of the range of $800 million to $1.0 billion, with fourth quarter results to be driven primarily by our Northern Hemisphere oilseeds operations

Will Form Strategic Review Committee of the Board Focused on Enhancing Shareholder Value

• Additionally, co announced that its Board of Directors has appointed the following three new board members: Paul Fribourg, Chairman and Chief Executive Officer of Continental Grain Company; Gregory Heckman, founding partner of Flatwater Partners; and Henry Winship, President of Pacific Point Capital, LLC. The appointments are effective today.
• With the addition of the three new directors, the Board has expanded to 14 directors. Bunge, the D. E. Shaw group and Continental Grain reached an agreement to appoint the three directors as well as a fourth, mutually agreeable independent director to be appointed by year end.

=Glencore makes takeover approach to Bunge (BG)?

• Glencore PLC has approached grain trader Bunge Ltd. about combining, a deal that would give the Swiss miner a major presence in the U.S. agriculture market at a time when low crop prices have forced farming giants to scale up through mergers.

(Thomson Reuters) Shares of agriculture-trading giant Bunge jumped by as much as 16% on Tuesday following a report that mining giant Glencore approached the company for a takeover.

The Wall Street Journal reported, citing people familiar with the matter, that Switzerland-based Glencore aims to gain a presence in the US agriculture market through a deal with Bunge. There's no assurance that talks will lead to a deal, the report noted.

After Bunge's stock-price move — the biggest intraday rise in eight years — its market cap was about $11.25 billion. Glencore, which trades on the London Stock Exchange, was worth approximately £42.3 billion ($55 billion.)

Glencore was squeezed two years ago when commodity prices plunged amid an economic slowdown in China. Investors also became concerned about Glencore's ability to pay its debt, and sent its shares down by as much as 90% from their initial public offering level.

A deal would signal that Glencore has recovered from the episode, the WSJ noted.

Bunge reported a net loss in the first quarter and earlier in May cut its profits outlook for the year.

=Bunge (BG) reported earnings on Wed 15 Feb 2017 (b/o)

Bunge beats by $0.11, beats on revs; provides FY17 segment EBITDA guidance & outlook :

• Reports Q4 (Dec) earnings of $1.70 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $1.59; revenues rose 8.3% year/year to $12.06 bln vs the $11.41 bln Capital IQ Consensus.
• Outlook:
  • "Our full-year 2017 outlook remains largely consistent with the assumptions that we provided at our December investor day. In Agribusiness, we expect EBIT to return to historical range of $895 to $1,050 million, driven by large crops in South America, of which Brazilian farmers have a significant percentage remaining to price; a return to more normal levels of soy meal inclusion in feed rations; and higher softseed crush margins due to the combination of greater seed supply and robust vegetable oil demand. We expect Agribusiness to start the year slow and progressively improve as volumes and margins pick up in South America."
  • "In Food & Ingredients, we expect segment results to improve sequentially as we progress through the year, resulting in EBIT of $270 to $290 million. Our outlook for year-over-year improvement reflects higher margins and volumes resulting from our performance improvement initiatives, more favorable product mix of higher value added products and full year contributions from our new wheat mills in Brazil."
  • "In Sugar & Bioenergy, we expect 2017 EBIT of $100 to $120 million."
  • In Sugar & Bioenergy, our sugar is hedged at higher prices and Brazilian ethanol prices should be supported by favorable supply and demand. Importantly, we will also continue to drive our performance improvement programs, expecting $100 million of incremental benefits in 2017."
  • "In Fertilizer, we expect EBIT of approximately $30 million."

=Bunge (BG) reported earnings on Wed 2 Nov 2016 (b/o)

Bunge reports EPS in-line, beats on revs :

• Reports Q3 (Sep) earnings of $0.73 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.73; revenues rose 6.1% year/year to $11.42 bln vs the $10.26 bln Capital IQ Consensus.
• Outlook:
  • Drew Burke, Chief Financial Officer, stated, "The agribusiness environment has improved with the arrival of harvests in the Northern Hemisphere, driving higher margins and utilizations in our North American and European oilseed processing and grain handling operations. Soybean meal demand should increase as feed formulations normalize, reflecting robust underlying demand for proteins. Slow farmer selling in South America is likely to persist through the end of the year.
  • "In Food & Ingredients, we expect 2016 EBIT of $230 to $240 million. Our improved outlook reflects higher margins and volumes resulting from our performance improvement initiatives and a more stable economic environment in Brazil.
  • "In Sugar & Bioenergy, we expect 2016 EBIT of $60 to $70 million. Our improved outlook reflects better than expected ethanol prices and assumes normal seasonal weather patterns.
  • "In Fertilizer, we expect 2016 EBIT to be approximately $30 million, which is slightly down from our earlier expectation due to lower margins.
  • "With this year's turnaround in Food & Ingredients, Sugar & Bioenergy and Fertilizer, we see the potential for significant earnings growth in 2017 as Agribusiness returns to historical levels of performance, supported by growing protein demand, record crops in South America, and the fact that Brazilian farmers have only priced small percentages of their next year's soy and corn crops."

=Bunge (BG) reported earnings on Thur 28 Jul 2016 (b/o)

Bunge beats by $0.40, beats on revs; reaffirms earnings growth for FY16  :

• Reports Q2 (Jun) earnings of $0.79 per share, excluding non-recurring items, $0.40 better thanthe Capital IQ Consensus of $0.39; revenues fell 2.2% year/year to $10.54 bln vs the $9.96 bln Capital IQ Consensus. 
• "Second quarter earnings were better than expected due to strong performance in Grains and favorable soy processing mark-to-market, which pulled some earnings forward. Our Agribusiness team and footprint allowed us to manage through a period of significant volatility in both prices and margins. In Food & Ingredients, Milling results were higher in all regions, reflecting better market conditions in Brazil and operational and commercial improvements. Edible Oils grew volumes, but margins continued to be under pressure in Brazil and parts of Eastern Europe. Sugar & Bioenergy results came in as expected with an outlook for a strong second half of the year. Our performance improvement programs have delivered approximately $60 million of savings year-to-date toward the full year estimate of $125 million."
• "We continue to expect earnings growth in 2016 with returns on capital well above WACC; however, second half earnings will be weighted to the fourth quarter coinciding with Northern Hemisphere harvests."
• "We also expect the mark-to-market gains we benefitted from in the second quarter to largely reverse in the third quarter. "In Food & Ingredients, we expect 2016 segment EBIT to be $10 to $30 million higher than last year's adjusted result of $192 million, primarily driven by our operational and commercial excellence initiatives and recent acquisitions. We have lowered the range of our previous outlook to reflect the continued challenging conditions in certain Edible Oils markets. Milling is on track and should continue to benefit from a very competitive footprint. "In Fertilizer, there is no change to our outlook, and we continue to expect 2016 segment EBIT to be ~$30 million higher than last year's result of $5 million, driven by improved farmer economics in Argentina, which should result in increased purchases of crop inputs. "In Sugar & Bioenergy, we are entering the seasonally strong period of the year when ATR yields rapidly increase. Our sugarcane milling operations are trending well, and the segment remains on target to grow segment EBIT by $70 to $80 million, assuming normal weather patterns, compared to last year's adjusted loss of $22 million."