Edible Oil Products Operating Profit
Improved margins were offset by higher operating expenses, which included investments to grow the business in Asia and Europe.
Fourth quarter results included $29 million of impairment and restructuring charges. These charges primarily relate to the closure of edible oil facilities in Eastern Europe, as well as impairments to goodwill and other intangible assets in India.
Milling Products Operating Profit
Higher raw material and operating costs in wheat milling more than offset improved results in corn milling.
Fourth quarter results included a $13 million impairment charge related to the closure of a wheat milling facility in Brazil. This facility is being replaced by a newer, more efficient facility that will come on-line in 2008.
Interest expense increased due to higher average borrowings, mostly resulting from the higher prices of agricultural commodity inventories which drove higher average working capital levels.
Foreign exchange gains, incurred primarily on the net U.S. dollar- denominated monetary liability positions of Bunge's Brazilian subsidiaries, were $39 million in the fourth quarter of 2007. These gains largely offset foreign exchange losses on inventories included in gross profit.
The effective tax rate for the year ended December 31, 2007 was 26%. For the year ended December 31, 2006, Bunge had a tax benefit of $36 million. The increase in the effective tax rate, excluding the one time items which resulted in the tax benefit in 2006, was primarily due to increases in operating earnings in higher tax jurisdictions.
Minority interest increased when compared to the same quarter in 2006 due to higher earnings at Fosfertil.
Cash provided by operations in the fourth quarter of 2007 was $254
million compared to cash provided by operations in the fourth quarter
|SOURCE Bunge Limited|
Copyright©2008 PR Newswire.
All rights reserved