Bunge Ltd. (BG, Financial) filed Quarterly Report for the period ended 2011-09-30.
Bunge Ltd. has a market cap of $9.18 billion; its shares were traded at around $62.25 with a P/E ratio of 10.2 and P/S ratio of 0.2. The dividend yield of Bunge Ltd. stocks is 1.6%.
As of September 30, 2011, $716 million of receivables sold under the Program were derecognized from Bunges condensed consolidated balance sheet. Proceeds received in cash related to these transfers, including collection of the deferred purchase price and subordinated loan activity, totaled $3,755 million for the nine months ended September 30, 2011. Cash collections from customers on receivables previously sold were $3,014 million for the nine months ended September 30, 2011. As this is a revolving facility, cash collections from customers are reinvested in new receivable sales. Gross receivables sold under the program were approximately $2,915 million and $3,755 million for the three and nine months ended September 30, 2011, respectively. These sales resulted in a discount of $2 million for both the three and nine months ended September 30, 2011. Servicing fees under the program were not significant.
Income Tax Expense. In the quarter ended September 30, 2011, we recorded an income tax benefit of $1 million compared to income tax expense of $97 million in the quarter ended September 30, 2010. The effective tax rate for the three months ended September 30, 2011 was (1)%, compared to 33% for the three months ended September 30, 2010 and reflects the cumulative impact of a decrease in our projected full year effective tax rate based on the forecasted geographic mix of earnings for 2011. The significantly higher effective rate for the three months ended September 30, 2010 resulted from higher segment EBIT and the impact of foreign exchange gains of approximately $197 million related to permanently invested intercompany loans in Brazil.
Our operating activities generated cash of $1,363 million for the nine months ended September 30, 2011 compared to cash used of $1,620 million for the nine months ended September 30, 2010. The positive cash flow from operating activities for the nine months ended September 30, 2011 was principally due to net income adjusted for non-cash charges for depreciation and amortization. Operating cash flows in the first nine months of 2011 were impacted by the net proceeds of approximately $716 million from sales of accounts receivables under our new global accounts receivable sale program that we entered into in June. In addition, we repaid approximately $500 million of trade accounts payable related to fertilizer imports as we can more efficiently fund fertilizer imports through internal sources, and in September, we paid approximately $112 million of export tax obligations in Argentina, which had been accrued in prior periods. The negative cash flow from operating activities for the nine months ended September 30, 2010 was primarily due to $280 million of withholding taxes and $144 million of transaction closing costs paid related to the sale of our Brazilian fertilizer nutrients assets.
Interest earned on secured advances to suppliers of $5 million and $4 million for the three months ended September 30, 2011 and 2010, respectively, and $17 million and $19 million for the nine months ended September 30, 2011 and 2010, respectively, is included in net sales in the condensed consolidated statements of income.
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Bunge Ltd. has a market cap of $9.18 billion; its shares were traded at around $62.25 with a P/E ratio of 10.2 and P/S ratio of 0.2. The dividend yield of Bunge Ltd. stocks is 1.6%.
Highlight of Business Operations:
Interest earned on secured advances to suppliers of $5 million and $4 million for the three months ended September 30, 2011 and 2010, respectively, and $17 million and $19 million for the nine months ended September 30, 2011 and 2010, respectively, is included in net sales in the condensed consolidated statements of income.As of September 30, 2011, $716 million of receivables sold under the Program were derecognized from Bunges condensed consolidated balance sheet. Proceeds received in cash related to these transfers, including collection of the deferred purchase price and subordinated loan activity, totaled $3,755 million for the nine months ended September 30, 2011. Cash collections from customers on receivables previously sold were $3,014 million for the nine months ended September 30, 2011. As this is a revolving facility, cash collections from customers are reinvested in new receivable sales. Gross receivables sold under the program were approximately $2,915 million and $3,755 million for the three and nine months ended September 30, 2011, respectively. These sales resulted in a discount of $2 million for both the three and nine months ended September 30, 2011. Servicing fees under the program were not significant.
Income Tax Expense. In the quarter ended September 30, 2011, we recorded an income tax benefit of $1 million compared to income tax expense of $97 million in the quarter ended September 30, 2010. The effective tax rate for the three months ended September 30, 2011 was (1)%, compared to 33% for the three months ended September 30, 2010 and reflects the cumulative impact of a decrease in our projected full year effective tax rate based on the forecasted geographic mix of earnings for 2011. The significantly higher effective rate for the three months ended September 30, 2010 resulted from higher segment EBIT and the impact of foreign exchange gains of approximately $197 million related to permanently invested intercompany loans in Brazil.
Our operating activities generated cash of $1,363 million for the nine months ended September 30, 2011 compared to cash used of $1,620 million for the nine months ended September 30, 2010. The positive cash flow from operating activities for the nine months ended September 30, 2011 was principally due to net income adjusted for non-cash charges for depreciation and amortization. Operating cash flows in the first nine months of 2011 were impacted by the net proceeds of approximately $716 million from sales of accounts receivables under our new global accounts receivable sale program that we entered into in June. In addition, we repaid approximately $500 million of trade accounts payable related to fertilizer imports as we can more efficiently fund fertilizer imports through internal sources, and in September, we paid approximately $112 million of export tax obligations in Argentina, which had been accrued in prior periods. The negative cash flow from operating activities for the nine months ended September 30, 2010 was primarily due to $280 million of withholding taxes and $144 million of transaction closing costs paid related to the sale of our Brazilian fertilizer nutrients assets.
Interest earned on secured advances to suppliers of $5 million and $4 million for the three months ended September 30, 2011 and 2010, respectively, and $17 million and $19 million for the nine months ended September 30, 2011 and 2010, respectively, is included in net sales in the condensed consolidated statements of income.
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