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

29. quarterly financial information

		Quarter

(US$ in millions, except per share data)		First			Second			Third			Fourth			Year End

2004														(Unaudited		)

Volumes (in millions of metric tons)			23.6			29.6			28.9			26.8			108.9
Net sales		$	5,739		$	6,657		$	6,560		$	6,212		$	25,168
Gross profit⁽¹⁾			365			496			553			472			1,886
Income before cumulative effect of change in accounting principles			70			112			182			105			469
Net income		$	70		$	112		$	182		$	105		$	469
Earnings per common share—basic
Income before cumulative effect of change in accounting principles		$	.70		$	1.08		$	1.65		$	.95		$	4.42
Net income per share⁽⁶⁾		$	.70		$	1.08		$	1.65		$	.95		$	4.42
Earnings per common share—diluted
Income before cumulative effect of change in accounting principles		$	.65		$	1.00		$	1.53		$	.89		$	4.10
Net income per share⁽²⁾⁽⁶⁾		$	.65		$	1.00		$	1.53		$	.89		$	4.10

Weighted average number of shares outstanding—basic		100,016,833			103,434,409			110,080,027			110,438,941			106,015,869
Weighted average number of shares outstanding—diluted⁽²⁾		109,565,699			112,891,787			119,624,913			120,279,197			115,674,056

Market price:
	High	$	40.22		$	41.27		$	40.98		$	57.08
	Low	$	32.99		$	34.07		$	36.96		$	38.80

2003

Volumes (in millions of metric tons)			22.3			28.1			28.8			27.0			106.2
Net sales		$	4,842		$	5,181		$	5,784		$	6,358		$	22,165
Gross profit⁽³⁾			273			269			369			394			1,305
Discontinued operations⁽⁴⁾			(1	)		(1	)		(2	)		(3	)		(7	)
Income before cumulative effect of change in accounting principles⁽⁵⁾			40			182			89			100			411
Net income		$	40		$	182		$	89		$	100		$	411
Earnings per common share—basic
Income before cumulative effect of change in accounting principles		$	.40		$	1.83		$	.89		$	1.00		$	4.12
Net income per share		$	.40		$	1.83		$	.89		$	1.00		$	4.12
Earnings per common share—diluted
Income before cumulative effect of change in accounting principles		$	.38		$	1.68		$	.83		$	.94		$	3.83
Net income per share⁽²⁾		$	.38		$	1.68		$	.83		$	.94		$	3.83

Weighted average number of shares outstanding—basic		99,585,790			99,696,727			99,812,000			99,884,771			99,745,825
Weighted average number of shares outstanding—diluted⁽²⁾		108,280,555			108,701,887			109,002,275			108,840,169			108,654,027

Market price:
	High	$	27.30		$	30.35		$	30.95		$	33.00
	Low	$	23.90		$	24.73		$	27.37		$	26.29

(1)	In the first quarter of 2004, Bunge recorded in cost of goods sold in its consolidated statements of income a pretax long-lived asset impairment charge of $3 million in its edible oil segment in North America related to its refining and packaging operations. In the fourth quarter of 2004, Bunge recorded long-lived asset impairment charges of $10 million in its agribusiness segment related to the oilseed operations in Western Europe and $4 million in its edible oil segment related to the refining and packaging operations in South America. In addition, Bunge recorded a restructuring charge of $7 million in its agribusiness segment related to the oilseed operations in Western Europe (see Note 10).
(2)	Effective for the year ended December 31, 2004, Bunge has adopted EITF Issue No. 04-08 and in accordance with Issue No. 04-08, has restated diluted earnings per share and diluted weighted average shares outstanding for all prior periods presented to include the 7,778,425 common shares that are issuable upon the conversion of convertible notes and related interest expense in the calculation of diluted earnings per share (see Note 24). Net income per share-diluted as previously reported for the first, second, third and fourth quarters of 2003 and for the year end was $.40, $1.80, $.88, $.99 and $4.07, respectively.
(3)	In the fourth quarter of 2003, Bunge recorded in cost of goods sold in its consolidated statement of income a pretax goodwill impairment charge of $16 million and a pretax long-lived asset impairment charge of $40 million in its agribusiness segment, relating to fixed assets at its European oilseed processing facilities (see Note 8 and Note 10). In the fourth quarter of 2002, Bunge recorded in cost of goods sold in its consolidated statements of income a pretax impairment charge of $5 million, relating to its U.S. edible oil bottling facilities.
(4)	In 2003, Bunge recorded a $7 million loss on discontinued operations, net of tax benefit of $5 million on the disposal of discontinued operations, relating to its U.S. bakery business sold on December 31, 2003 (see Note 3). In connection with this transaction, the previously reported first, second and third quarters of 2003 have been reclassified to reflect this transaction.
(5)	In the second quarter of 2003, Bunge sold its Brazilian soy ingredients operations to Solae, its 28% joint venture with DuPont, for $251 million in cash, net of expenses of $5 million. Consequently, Bunge recognized a non-taxable gain on sale of $111 million in 2003 that was included in gain on sale of soy ingredients business in the consolidated statements of income for the year ended December 31, 2003 (see Note 11).
(6)	Net income per share for both basic and diluted is computed independently for each period presented. As a result, the sum of net income per share for the year ended December 31, 2004 does not equal the total computed for the year.

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