EXHIBIT 99.1
[GRAPHIC OMITTED]
Bunge Reports First Quarter 2006 Results
White Plains, NY - April 27, 2006 - Bunge Limited (NYSE:BG).
> Financial Highlights
(In millions, except per share data and percentages)
- --------------------------------------------------------------------------------
First Quarter Ended
---------------------- Percent
3/31/06 3/31/05 Change
- --------------------------------------------------------------------------------
Volumes (metric tons) 24.9 26.5 (6)%
Net sales $5,601 $5,451 3%
Total segment operating profit(1) $54 $139 (61)%
Net income $58 $98 (41)%
Earnings per share(2) $0.48 $0.82 (41)%
- --------------------------------------------------------------------------------
Bunge's results included certain gains and charges that may be of interest to
investors. These charges totaled $18 million, or $0.15 per share, in the quarter
ended March 31, 2006. In the quarter ended March 31, 2005, the gains totaled $19
million, or $0.16 per share. Additional information is provided in the attached
schedule titled "Additional Financial Information."
_____________________
(1) Total segment operating profit is the consolidated segment operating profit
of Bunge's segments. Total segment operating profit is a non-GAAP measure and is
not intended to replace income from operations before income tax, the most
directly comparable GAAP measure. The information required by Regulation G under
the Securities Exchange Act of 1934, including a reconciliation to income from
operations before income tax, is included in the tables attached to this press
release.
(2) Earnings per share (EPS) are reported on a fully diluted basis. See Note 2
to the consolidated statements of income attached to this press release for more
information.
> Overview
Alberto Weisser, Bunge's Chairman and Chief Executive Officer stated: Overall,
we performed as expected in the first quarter of 2006, but with some shifts in
the relative performance of our segments. Agribusiness results were weaker than
anticipated due to freight management losses and reduced volumes in South
America and southern Europe. Results in fertilizer were better than expected due
to improved hedging of foreign currency. Milling and edible oils results were
better than expected due to higher margins. Many of the challenges
experienced in 2005 continue, but we remain focused on delivering results and
continue to forecast 2006 to be a year of improved operating performance for
Bunge.
"We are making progress managing a difficult Brazilian operating environment.
The measures we took at the end of last year to improve our performance began
providing benefits during the quarter. We took additional steps this quarter by
permanently closing three additional small oilseed processing plants and further
reducing our workforce.
"In the last six months, we have reduced our Brazilian staff by over 10%, closed
five oilseed processing plants and idled seven fertilizer facilities, among
other measures. We expect these steps to help offset the effects of a stronger
real and to improve the efficiency of our global footprint.
"A stronger real, high transport costs and large global stocks are contributing
to lower local soy prices in Brazil that will pressure farm economics through
2006. The agribusiness market is efficient, however. As current world commodity
stocks are reduced by steady demand growth for protein meal and vegetable oil,
the market will price crops at levels that encourage the Brazilian farmer to
expand production. The USDA forecasts that substantially all of the medium to
long-term growth in global soybean production will occur in South America,
especially Brazil.
"2006 will bring challenges, but the Bunge team is responding energetically to
deliver results. While we will always experience market fluctuations,
fundamental demand will drive long-term growth. We will continue to position
Bunge to benefit from it."
> First Quarter Results
Agribusiness
Volumes were lower due principally to slow farmer selling in South America and
reduced Argentine grain crops. Freight management results were negative. In
Brazil, a stronger real increased local costs and reduced results when
translated into U.S. dollars, despite lower local currency costs. The average
real-U.S. dollar exchange rate strengthened 18% when compared to the first
quarter of 2005. Soy volumes and margins in southern Europe were affected by
local outbreaks of avian influenza. Bunge's North American businesses
experienced good margins and produced stronger results, despite higher energy
costs.
First quarter 2006 results included $18 million of impairment charges related to
the closure of three oilseed processing plants in Brazil and $2 million of cash
restructuring charges. Agribusiness results for the first quarter of 2005
included a $27 million reversal of the remaining balance of the allowance for
recoverable taxes in Argentina.
Fertilizer
Fertilizer results rose in the quarter, despite flat sales volumes. Improved
foreign currency hedging offset the impact of a stronger real on margins and
costs. First quarter 2006 results included a $2 million cash restructuring
charge related to workforce reductions.
Edible Oil Products
Stronger results in Europe, due to higher volumes and better margins, more than
offset weaker results in the Americas. First quarter 2006 results included a $2
million impairment charge related to the closure of the refining and bottling
operations at two oilseed processing facilities in Brazil.
Milling Products
Results rose due to improved product mixes in wheat and corn milling.
Financial Costs
Interest income increased primarily due to higher levels of interest-bearing
accounts. Interest expense increased primarily due to higher short-term interest
rates, partially offset by lower average borrowings. Foreign exchange gains,
which helped offset currency effects on costs and margins in the first quarter
of 2006, resulted from the effects of the appreciation of the Brazilian real,
when compared to the U.S. dollar, at March 31, 2006 versus December 31, 2005 on
the net U.S. dollar-denominated monetary liability position of Bunge's Brazilian
subsidiaries.
Income Taxes
The effective tax rate for the first quarter of 2006 was 16% compared to 30% in
the same period in 2005. The decline in the tax rate from 2005 was primarily due
to higher earnings in lower tax jurisdictions and the effects of a legal
restructuring completed in 2005.
Minority Interest
Minority interest decreased when compared to 2006 due to lower earnings at
Fosfertil.
Cash Flow and Net Financial Debt(3)
Net financial debt at March 31, 2006 increased $141 million from December 31,
2005. Cash flow used by operations was $54 million for the quarter ended March
31, 2006 compared to $226 million used by operations in the first quarter of
2005. Cash flow from operations improved from last year primarily due to reduced
inventory levels.
__________________
(3) Net financial debt is a non-GAAP financial measure and is not intended to
replace total debt. A definition of net financial debt and the information
required by Regulation G under the Securities Exchange Act of 1934, including a
reconciliation of net financial debt to total debt, the most directly comparable
GAAP measure, is included in the tables attached to this press release.
> Outlook
Bill Wells, Chief Financial Officer, stated, "We are making progress managing
through a weak operating environment in Brazil. Slow farmer selling should
continue to affect agribusiness results. The Brazilian fertilizer industry
continues to expect flat retail sales. North America should have a good year,
but a difficult comparison to excellent results in 2005. A strong domestic
market for wheat milling and lower European seed costs benefiting edible oil
results should contribute to improved performance in our food products business.
"The agribusiness market, especially in Argentina and Southern Europe, will be
more difficult and freight results weaker than originally anticipated. These
factors should result in lower agribusiness operating profit, especially in the
first half of the year.
"Our enhanced foreign currency hedging programs are working well. Net income
effects of the continued appreciation of the Brazilian real should be mitigated
by our initiatives to improve margins, lower costs, decrease our effective tax
rate and reduce exposure to the real throughout our business.
"Our 2006 guidance is as follows:
o Depreciation, Depletion and Amortization: $310 million to $320
million
o Capital Expenditures (net of asset dispositions): $490 million to
$510 million
o $195 million to $215 million maintenance, safety and
environmental capital expenditures
o Effective Tax Rate: 14% to 18%
o Joint Venture Earnings: $40 million to $45 million
"This guidance assumes the following:
o Stable currencies in South America and Europe
o Normal crops
o Stable international fertilizer prices, and
o Flat Brazilian retail fertilizer market sales when compared to 2005.
"Based on these assumptions, our 2006 net income guidance is $495 million to
$515 million, representing $4.08 to $4.25 per share. This fully diluted per
share guidance is based on an estimated weighted average of 121.3 million shares
outstanding, and includes $0.06 per share for stock option expense, as well as
the effect of impairment and restructuring charges taken during the first
quarter.
"Due to a favorable recent court ruling in Brazil, we expect to be reimbursed
certain amounts owed to us by the local electric utility in 2006. The value of
these reimbursements has not yet been determined, and while likely to be
significant, is not included in our guidance."
Conference Call and Webcast Details
Bunge Limited's management will host a conference call at 10:00 a.m. EDT today
to discuss the company's results.
To listen to the conference call, please dial (888) 202-2422. If you are located
outside of the United States, dial (913) 981-5592. Please dial in five to 10
minutes before the scheduled start time. When prompted, enter passcode number
4801807. The conference call will also be available live on the company's Web
site at www.Bunge.com.
To access the webcast, click the "News and Information" link on the Bunge
homepage then select "Webcasts and Upcoming Events". Click the link for the "Q1
2006 Bunge Limited Conference Call," and follow the prompts to join the call.
Please go to the Web site at least 15 minutes prior to the call to register and
to download and install any necessary audio software.
For those who cannot listen to the live broadcast, a replay of the call will be
available beginning at 1:00 p.m. EDT on April 27, 2006 and continuing through
1:00 p.m. EDT May 27, 2006. To listen to the replay, please dial (888) 203-1112,
or, if located outside of the United States, dial (719) 457-0820. When prompted,
enter passcode number
4801807. A rebroadcast of the conference call will also be available on the
company's Web site beginning at 1:00 p.m. EDT on April 27, 2006 and continuing
through 12:00 p.m. EDT on May 27, 2006. To locate the rebroadcast on the Web
site, click the "News and Information" link on the Bunge homepage then select
"Audio Archives" from the left-hand menu. Select the link for the "Q1 2006 Bunge
Limited Conference Call." Follow the prompts to access the replay.
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 23,500 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
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.
Additional Financial Information
The following table provides a summary of certain gains and charges that may be
of interest to investors. The table includes a description of these items and
their effect on total segment operating profit, income from operations before
income tax, net income and earnings per share for the quarter ended March 31,
2006 and 2005.
- ----------------------------------------------------------------------------------------------------------------------------------
Income From
Total Segment Operations Before Earnings Per
(In millions, except per share data) Operating Profit Income Tax Net Income Share Diluted
- ------------------------------------ ----------------- ---------- ---------- ----------------
Quarter Ended March 31: 2006 2005 2006 2005 2006 2005 2006 2005
---- ---- ---- ---- ---- ---- ---- ----
Impairment and restructuring
charges (1) $(24) $ - $(24) $ - $(16) $ - $(0.13) $ -
Reversal of recoverable
tax valuation allowance (2) - 27 - 27 - 19 - 0.16
Incremental share-based
compensation expense (3) (3) - (3) - (2) - (0.02) -
--------------------------------------------------------------------------------------------
Total $(27) $27 $(27) $27 $(18) $19 $(0.15) $0.16
============================================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
(1) Impairment and restructuring changes in the quarter ended March 31, 2006
consisted of $20 million in the agribusiness segment, $2 million in the
fertilizer segment and $2 million in the edible oil products segment.
(2) Represents the reversal of the remaining Argentine recoverable tax
valuation allowance in the agribusiness segment.
(3) In the first quarter 2006, Bunge adopted Financial Accounting Standards No.
123R - Share-Based Payments (SFAS No. 123R) and began expensing stock
options. Prior to the adoption of SFAS No. 123R, Bunge accounted for
stock-based compensation using the intrinsic value method under Accounting
Principles Board Opinion No. 25, Accounting for Stock Issued to Employees
(APB 25), and Financial Accounting Standards Board Interpretation No. 28,
Accounting for Stock Appreciation Rights and Other Variable Stock Option or
Award Plans (FIN 28) with pro forma disclosure in accordance with the
provisions of SFAS No. 123, Accounting for Stock-Based Compensation.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data and percentages)
(Unaudited)
Quarter Ended
March 31,
----------------------------- Percent
2006 2005 Change
-------------- ------------- ---------
Net sales $5,601 $5,451 3%
Cost of goods sold (5,317) (5,066) 5%
-------------- -------------
Gross profit 284 385 (26)%
Selling, general and administrative expenses (227) (196) 16%
Interest income 28 23 22%
Interest expense (48) (50) (4)%
Interest expense on readily marketable inventories (13) (7) 86%
Foreign exchange gain (loss) 43 (16)
Other income (expense)-net (Note 1) 1 8 (88)%
-------------- -------------
Income from operations before income tax 68 147 (54)%
Income tax expense (11) (44) (75)%
-------------- -------------
Income from operations after income tax 57 103 (45)%
Minority interest (11) (15) (27)%
Equity in earnings of affiliates (Note 1) 12 10 20%
-------------- -------------
Net income $ 58 $ 98 (41)%
============== =============
Earnings per common share - diluted:
Net income per share - diluted $ 0.48 $ 0.82 (41)%
============== =============
Weighted-average common shares outstanding - diluted 120,596,824 120,638,146
============== =============
________________________________________________________________________________
Note 1: In the first quarter of 2006, Bunge reclassified certain earnings on
investments in affiliates from other income (expense) - net to equity
in earnings of affiliates. As a result, amounts for the quarter ended
March 31, 2005 have been reclassified to conform to the quarter ended
March 31, 2006 presentation.
CONSOLIDATED SEGMENT INFORMATION
(In millions, except volumes and percentages)
(Unaudited) (Note 1)
Set forth below is a summary of certain items in our consolidated statements of
income and volumes by reportable segment.
Quarter Ended
March 31,
---------------------- Percent
2006 2005 Change
------------ ---------- ----------
Volumes (in thousands of metric tons):
Agribusiness 21,252 22,791 (7)%
Fertilizer 1,718 1,729 (1)%
Edible oil products 1,005 998 1%
Milling products 950 985 (4)%
--------- ---------
Total 24,925 26,503 (6)%
========= =========
Net sales:
Agribusiness $4,162 $4,056 3%
Fertilizer 420 403 4%
Edible oil products 786 798 (2)%
Milling products 233 194 20%
--------- ---------
Total $5,601 $5,451 3%
========= =========
Gross profit:
Agribusiness $126 $219 (42)%
Fertilizer 50 70 (29)%
Edible oil products 76 71 7%
Milling products 32 25 28%
--------- ---------
Total $284 $385 (26)%
========= =========
Selling, general and administrative expenses:
Agribusiness $(104) $(95) 9%
Fertilizer (54) (43) 26%
Edible oil products (54) (47) 15%
Milling products (15) (11) 36%
--------- ---------
Total $(227) $(196) 16%
========= =========
Foreign exchange gain (loss):
Agribusiness $ 1 $ 4
Fertilizer 33 (17)
Edible oil products 1 (1)
Milling products - -
--------- ---------
Total $35 $ (14)
========= =========
Interest income:
Agribusiness $7 $4 75%
Fertilizer 16 13 23%
Edible oil products - 1 (100)%
Milling products - - -%
--------- ---------
Total $23 $18 28%
========= =========
Interest expense:
Agribusiness $(38) $(29) 31%
Fertilizer (14) (14) -%
Edible oil products (7) (9) (22)%
Milling products (2) (2) -%
--------- ---------
Total $(61) $(54) 13%
========= =========
Quarter Ended
March 31,
---------------------- Percent
2006 2005 Change
------------ ---------- ----------
Segment operating profit (loss):
Agribusiness $ (8) $103 (108)%
Fertilizer 31 9 244%
Edible oil products 16 15 7%
Milling products 15 12 25%
--------- ---------
Total (Note 2) $54 $139 (61)%
========= =========
Income from operations before income tax :
Segment operating profit $54 $139
Unallocated income - net (Note 3) 14 8
--------- ---------
Income from operations before income tax $68 $147
========= =========
Depreciation, depletion and amortization:
Agribusiness $30 $25 20%
Fertilizer 31 23 35%
Edible oil products 13 12 8%
Milling products 4 3 33%
--------- ---------
Total $78 $63 24%
========= ========= ---------
________________________________________________________________________________
Note 1: In the first quarter of 2006, Bunge reclassified certain product lines
in its agribusiness segment to its edible oil products segment. As a
result, amounts for the quarter ended March 31, 2005 have been
reclassified to conform to the quarter ended March 31, 2006
presentation.
Note 2: Total segment operating profit is the consolidated segment operating
profit of all of Bunge's operating segments. Total segment operating
profit is a non-GAAP measure and is not intended to replace income from
operations before income tax, the most directly comparable GAAP
measure. The information required by Regulation G under the Securities
Exchange Act of 1934, including the reconciliation to income from
operations before income tax, is included under the caption
"Reconciliation of Non-GAAP Measures".
Note 3: Includes interest income, interest expense and foreign exchange
gains and losses and other income and expenses not directly
attributable to Bunge's operating segments.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
March 31, December 31, March 31,
2006 2005 2005
----------------- ------------------ ----------------
ASSETS
Current assets:
Cash and cash equivalents $ 280 $ 354 $ 339
Trade accounts receivable 1,611 1,702 1,799
Inventories 2,698 2,769 2,866
Deferred income taxes 110 102 106
Other current assets 1,672 1,637 1,660
----------------- ------------------ ----------------
Total current assets 6,371 6,564 6,770
Property, plant and equipment, net 3,024 2,900 2,550
Goodwill 185 176 166
Other intangible assets, net 132 132 170
Investments in affiliates 613 585 577
Deferred income taxes 550 462 260
Other non-current assets 704 627 557
----------------- ------------------ ----------------
Total assets $11,579 $11,446 $11,050
================= ================== ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 555 $ 411 $ 661
Current portion of long-term debt 175 178 144
Trade accounts payable 1,666 1,803 1,839
Deferred income taxes 34 38 38
Other current liabilities 1,053 1,187 1,170
----------------- ------------------ ----------------
Total current liabilities 3,483 3,617 3,852
Long-term debt 2,485 2,557 2,728
Deferred income taxes 151 145 221
Other non-current liabilities 607 576 541
Minority interest in subsidiaries 351 325 289
Shareholders' equity 4,502 4,226 3,419
----------------- ------------------ ----------------
Total liabilities and shareholders' equity $11,579 $11,446 $11,050
================= ================== ================
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Quarter Ended
March 31,
---------------------------------
2006 2005
------------- ----------------
OPERATING ACTIVITIES
Net income $58 $98
Adjustments to reconcile net income to cash provided by operating
activities:
Foreign exchange (gain) loss on debt (42) 13
Impairment of assets 20 -
Bad debt expense 14 5
Depreciation, depletion and amortization 78 63
Decrease in the allowance for recoverable taxes (6) (27)
Deferred income taxes (32) 9
Minority interest 11 15
Changes in operating assets and liabilities, excluding the effects of
acquisitions:
Trade accounts receivable 144 92
Inventories 135 (267)
Prepaid commodity purchase contracts (22) (42)
Advances to suppliers 50 40
Trade accounts payable (213) (40)
Advances on sales (49) (57)
Unrealized (gain) loss on derivative contracts (85) 76
Accrued liabilities (36) (71)
Other - net (79) (133)
------------- ----------------
Cash used by operating activities (54) (226)
INVESTING ACTIVITIES
Payments made for capital expenditures (70) (94)
Investments in affiliates (33) -
Acquisitions of businesses and other intangible assets - (24)
Return of capital from affiliate 6 8
Investments in related party loans 1 (6)
------------- ----------------
Cash used for investing activities (96) (116)
FINANCING ACTIVITIES
Net change in short-term debt 145 120
Proceeds from long-term debt 16 241
Repayments of long-term debt (66) (86)
Proceeds from sale of common shares 2 3
Dividends paid to shareholders (18) (14)
Dividends paid to minority interest (17) (8)
------------- ----------------
Cash provided by financing activities 62 256
Effect of exchange rate changes on cash and cash equivalents 14 (7)
------------- ----------------
Net decrease in cash and cash equivalents (74) (93)
Cash and cash equivalents, beginning of period 354 432
------------- ----------------
Cash and cash equivalents, end of period $280 $339
============= ================
Reconciliation of Non-GAAP Measures
This earnings release contains total segment operating profit, net financial
debt and net financial debt less readily marketable inventories, which are
"non-GAAP financial measures" as this term is defined in Regulation G of the
Securities Exchange Act of 1934. In accordance with Regulation G, Bunge has
reconciled these non-GAAP financial measures to the most directly comparable
U.S. GAAP measures.
Total Segment Operating Profit
Total segment operating profit, which is the consolidated segment operating
profit of all of Bunge's operating segments, is Bunge's consolidated income from
operations before income tax that includes an allocated portion of the foreign
exchange gains and losses relating to debt financing operating working capital,
including readily marketable inventories. Also included in total segment
operating profit is an allocation of interest income and interest expense
attributable to the financing of operating working capital.
Total segment operating profit is a non-GAAP financial measure and is not
intended to replace income from operations before income tax, the most directly
comparable GAAP financial measure. Total segment operating profit is a key
performance measurement used by Bunge's management to evaluate whether operating
activities cover the financing costs of its business. Bunge believes total
segment operating profit is a more complete measure of its operating
profitability, since it allocates foreign exchange gains and losses and the cost
of debt financing working capital to the appropriate operating segments.
Additionally, Bunge believes total segment operating profit assists investors by
allowing them to evaluate changes in the operating results of its portfolio of
businesses before non-operating factors that affect net income. Total segment
operating profit is not a measure of consolidated operating results under U.S.
GAAP and should not be considered as an alternative to income from operations
before income tax or any other measure of consolidated operating results under
U.S. GAAP.
Below is a reconciliation of income from operations before income tax to total
segment operating profit:
Quarter Ended March 31,
-------------------------
(In millions) 2006 2005
------------- ----------- ----------
Income from operations before income tax
$68 $147
Minus: Unallocated income - net (1) (14) (8)
----------- ----------
Total segment operating profit $54 $139
=========== ==========
_______________
(1) Includes interest income, interest expense and foreign exchange gains
and losses and other income and expenses not directly attributable to
Bunge's operating segments.
Net Financial Debt
Net financial debt is the sum of short-term debt, current maturities of
long-term debt and long-term debt, less cash and cash equivalents and marketable
securities. Net financial debt is presented because management believes it
represents a meaningful measure of Bunge's leverage capacity and solvency. Net
financial debt is not a measure of solvency under U.S. GAAP and should not be
considered as an alternative to total debt as a measure of solvency.
Net financial debt less readily marketable inventories (RMI), or net financial
debt less RMI, is the sum of short-term debt, current maturities of long-term
debt and long-term debt, less cash and cash equivalents, marketable securities
and readily marketable inventories. Net financial debt less RMI is presented
because management believes it represents a more complete picture of Bunge's
leverage capacity and solvency since it adjusts for readily marketable
inventories. Readily marketable inventories are agricultural inventories that
are readily convertible to cash because of their commodity characteristics,
widely available markets and international pricing mechanisms. Net financial
debt less RMI is not a measure of leverage capacity and solvency under U.S. GAAP
and should not be considered as an alternative to total debt as a measure of
solvency.
Below is a reconciliation of total long-term and short-term debt to net
financial debt and to net financial debt less readily marketable inventories:
March 31, December 31, March 31,
(In millions) 2006 2005 2005
------------ ------------------ ---------------- ---------------
Short-term debt $ 555 $ 411 $ 661
Long-term debt, including current portion 2,660 2,735 2,872
------------------ ---------------- ---------------
Total debt 3,215 3,146 3,533
Less:
Cash and cash equivalents 280 354 339
Marketable securities 11 9 13
------------------ ---------------- ---------------
Net financial debt 2,924 2,783 3,181
Less: Readily marketable inventories 1,513 1,534 1,629
------------------ ---------------- ---------------
Net financial debt less readily marketable
inventories $1,411 $1,249 $1,552
================== ================ ===============