Bunge 2004 Annual Report

Common Share Market and Dividends

Five-Year Summary of Selected Financial Data

Management's Discussion and Analysis of Financial Condition and Results of Operations

Consolidated Statements of Income

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Consolidated Statements of Shareholders' Equity

Notes to the Consolidated Financial Statements

Management's Report on Internal Control Over Financial Reporting

Reports of Independent Registered Public Accounting Firm

notes to the consolidated
financial statements

24. earnings per share
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, excluding any dilutive effects of stock options, restricted stock unit awards and convertible notes during the reporting period. Diluted earnings per share is computed similar to basic earnings per share, except that the weighted average number of common shares outstanding is increased to include additional shares from the assumed exercise of stock options, restricted stock unit awards and convertible notes, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. In addition, Bunge accounts for the effect of the convertible notes on its diluted earnings per share computation using the if-converted method. Under this method, the convertible notes are assumed to be converted and the interest expense, net of tax related to the convertible notes is added back to earnings.

The computation of diluted earnings per common share for the years ended December 31, 2004, 2003 and 2002 include the weighted average common shares that would be issuable upon conversion of Bunge's 3.75% convertible notes due 2022, having a $250 million aggregate principal amount. The convertible notes are convertible into Bunge's common shares at the option of a holder, among other circumstances, during any calendar quarter in which the closing price of Bunge's common shares for at least 20 trading days of the last 30 trading days of the immediately preceding calendar quarter is more than 120% of the conversion price of $32.1402 or approximately $38.57 per share. The initial conversion rate is 31.1137 common shares of Bunge Limited for each $1,000 principal amount of notes converted.

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2004, 2003 and 2002.

Year Ended December 31,

(US$ in millions, except for share data) 2004 2003 2002

Income from continuing

operations—basic      $ 469      $ 418      $ 275

Interest on convertible notes,

net of tax 5 5 1

Interest from continuing

operations—diluted $ 474 $ 423 $ 276

Weighted average

number of common

shares outstanding:

Basic 106,015,869 99,745,825 95,895,338

Effect of dilutive shares:

—stock options

   and awards 1,879,762 1,129,777 753,791

—convertible notes 7,778,425 7,778,425 745,876

Diluted      115,674,056      108,654,027      97,395,005

Income from continuing

operations per share:

Basic $ 4.42 $ 4.19 $ 2.87

Diluted $ 4.10 $ 3.89 $ 2.83

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