Bunge notes from conf. (68.29)
- A solid Q4 to end a challenging year
- Agribusiness finished the year on a positive note
- Significant improvement in Food & Ingredients
- Record results in Sugar & Bioenergy
- Agribusiness-Foods ROIC continues to exceed WACF
- Strong cash generation Co has ~$4 billion of long term debt (BBB rated)
- Committed credit facilities of ~$5 billion, all of which was unused and available at 12/31/2016
- There's a huge corn crop coming
- Co expects to see an improvement in farmer prices BG is not expecting the Brazilian economy to really help them out In co's 2017 outlook, they are starting a
- Agribusiness:
- Expect EBIT to return to historical range of $895 to $1,050 million vs 2016 adjusted EBIT of $782 million
- South America expecting record crops, which aligns well with our footprint
- Brazil farmers have only priced relatively small percentages of 2017 soy and corn production
- Expect return to normal levels of soy meal inclusion in feed rations as year progresses
- Higher softseedcrush margins due to greater seed supply from large crops and robust vegetable oil demand
- Expect slow start to the year with progressive improvement as volumes and margins pick up in South America
- Food & Ingredients:
- Expect EBIT of $270 to $290 million vs. 2016 adjusted EBIT of $229 million
- Sugar & Bioenergy:
Expect EBIT of $100 to $120 million vs 2016 adjusted EBIT of $51 million - Have hedged much of our 2017 sugar production at higher year-over-year prices
Fertilizer: Expect EBIT of ~$30 million vs. 2016 adjusted EBIT of $38 million