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Investor Susie Ter-Jung Media Stewart Lindsay
Contact: Bunge Limited Contact: Bunge Limited
1-914-684-3398 1-914-684-3369
Susie.Ter-Jung@Bunge.com Stewart.Lindsay@Bunge.com
Bunge Provides Updates on Second-Half 2005 Business Performance
White Plains, NY - September 7, 2005 - Bunge Limited (NYSE: BG) today will
update the Prudential Back-to-School Conference on the Company's performance in
the second half of 2005:
o Weak operating conditions in the Brazilian fertilizer industry are
expected to persist for the remainder of the year. ANDA, the Brazilian
fertilizer association, now estimates that annual retail NPK
fertilizer volumes will be 12 percent below 2004 levels. A stronger
Brazilian real has contributed to a combination of high input costs
and lower income from crop sales for farmers. A severe drought in the
southern region of the country and a lack of promised economic relief
from the government to drought-affected farmers have also put pressure
on farm economics.
o Conditions are affecting this calendar year. The long-term, positive
fundamentals of the Brazilian fertilizer industry remain unchanged.
o As a result of the expected completion of a legal restructuring
initiated with the 2004 buyout of minority interests, Bunge expects to
realize approximately $40 million in tax benefits in the fourth
quarter of 2005, assuming a stable Dollar/real exchange rate.
o Due to this legal restructuring, and initiatives taken to reduce
exposure to a stronger Brazilian real, the company is revising
guidance for its 2005 effective tax rate to a range of between 18 and
22 percent from a range of between 28 and 33 percent.
o As a result of these factors, and assuming stable currencies in South
America and Europe and normal 2005/2006 North American and European
crops, Bunge is maintaining its 2005 net income guidance of $485 to
$505 million, which represents fully diluted per share earnings of
$4.05 to $4.22 per share, based on an estimated weighted average of
120.9 million shares outstanding.
o Unlike 2004, and current analyst consensus, the company does not
expect to earn the majority of its second-half net income in the third
quarter.
Bunge's presentation will begin at 3:45 p.m. Eastern time and will be webcast
live on Bunge.com.
Webcast Information
To access the webcast, go to the Bunge Web site (www.Bunge.com) and select the
"News and Information" link at the bottom left. Select "Webcasts and Upcoming
Events," and follow the prompts for the "Prudential Back-to-School Conference."
A replay of the webcast, available later in the day on September 7, will be
archived on the Bunge Web site. To access the replay, go to "News & Information"
and select the "Audio Archive" link. Click on the "Replay" link, and follow the
prompts to access the presentation.
About Bunge Limited
Bunge Limited (http://www.Bunge.com) is an integrated, global agribusiness and
food company operating in the farm-to-consumer food chain. Founded in 1818 and
headquartered in White Plains, New York, Bunge has 25,000 employees and
locations in 32 countries. Bunge is the world's leading oilseed processor, the
largest producer and supplier of fertilizers to farmers in South America and the
world's leading seller of bottled vegetable oils to consumers.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All
statements, other than statements of historical fact are, or may be deemed to
be, forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. These forward-looking statements are not based on
historical facts, but rather reflect our current expectations and projections
about our future results, performance, prospects and opportunities. We have
tried to identify these forward-looking statements by using words including
"may," "will," "expect," "anticipate," "believe," "intend," "estimate,"
"continue" and similar expressions. These forward-looking statements are subject
to a number of risks, uncertainties and other factors that could cause our
actual results, performance, prospects or opportunities, as well as those of the
markets we serve or intend to serve, to differ materially from those expressed
in, or implied by, these forward-looking statements. The following important
factors, among others, could affect our business and financial performance: our
ability to complete, integrate and benefit from acquisitions, divestitures,
joint ventures and strategic alliances; estimated demand for the commodities and
other products that we sell and use in our business; industry conditions,
including the cyclicality of the agribusiness industry and unpredictability of
the weather; agricultural, economic and political conditions in the primary
markets where we operate; and other economic, business, competitive and/or
regulatory factors affecting our business generally. The forward-looking
statements included in this release are made only as of the date of this
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release, and except as otherwise required by federal securities law, we do not
have any obligation to publicly update or revise any forward-looking statements
to reflect subsequent events or circumstances.
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