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Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

TRACKING THE NUMBERS: Bunge's Fiscal Reports Leave Some Puzzled

  • Summary: There have long been questions about global agribusiness and food company Bunge Ltd.'s (NYSE:BG) financial reporting. These reports often carry one-time items that benefit the bottom line, causing some analysts to question the sustainability of Bunge's earnings. Other causes for concern include Bunge's free cash flow which has been negative for three of the past four years, according to Fitch Ratings, despite solid earnings reports. Other causes for skepticism include the way Bunge reports the income it generates from lending money to Brazilian farmers, which last month the company warned would hurt second-quarter profits due to supply disruptions caused by some of those Brazilian farmers. The company's financial results are due this week. Despite concerns, a Citigroup report early this month said the downturn in Bunge's stock following its earnings warning presented a buying opportunity in light of the potential strength of global agriculture markets.
Source: Bunge Ltd.'s Strange Financial Reporting Practices a Cause for Concern