Bunge sees FY18 total segment adjusted EBIT below previously disclosed range
The company provided an update on its full-year 2018 financial results. On a preliminary basis, Bunge now expects full-year 2018 total segment adjusted EBIT to be below the previously disclosed $1.045B low end of the outlook range. Net debt at year end 2018 was approximately $5B, reduced from approximately $7B at the end of the third quarter 2018. For the full year 2018, Bunge estimates an adjusted EBIT shortfall of approximately $90M-$100M in the Agribusiness segment and a shortfall of approximately $60M-$70M in the Sugar and Bioenergy segment, compared to the low end of the previously disclosed ranges. The Agribusiness shortfall was largely due to the reduction in value of the company's Brazilian soybean ownership as factors related to China trade and demand caused Brazilian prices to converge with U.S. prices. The Sugar and Bioenergy shortfall was primarily due to lower Brazilian ethanol prices, and a weather-related reduction in yields as a poor crop year came to a close.