Bunge Limited (NYSE: BG) reported Q4 EPS of $0.67, which may not compare to the analyst estimate of $1.37. Revenue for the quarter came in at $11.61 billion versus the consensus estimate of $12.55 billion.

Outlook

In 2018, we will continue to focus on execution of our strategic priorities.

Savings from the Global Competitiveness Program are expected to total $100 million versus our 2017 addressable SG&A baseline. We expect an additional $80 million of savings in industrial and supply chain initiatives. Savings from these programs are reflected in the segment EBIT ranges below.

In Agribusiness, we are not expecting a quick turnaround; however, oilseed crush margins are showing signs of improvement. We are entering South American harvests with increased flexibility. We have reduced forward logistics and sales commitments in Brazil and Argentina, providing more optionality to adapt to farmer marketing and customer buying patterns. In each of the past two years, unusually low priced feed wheat and DDGS have taken share from soybean meal in feed formulations, negatively impacting soy crush margins. With soymeal more competitively priced and expectations that Argentine processors will crush in alignment with the pace of farmer selling, we see a better balance in the supply and demand of soymeal during the year. Based on these factors, which should improve origination and crush margins, we see segment EBIT improving to a range of $550 to $700 million. We expect results to be weighted to the second half of the year with a soft first quarter.

In Food & Ingredients, we expect segment results to improve sequentially as we progress through the year, resulting in EBIT of $260 to $280 million. Our outlook for year-over-year growth reflects increased volume of higher value-added products, growth in sales to key accounts and higher results in Brazil wheat milling. The EBIT range does not reflect contributions from Loders Croklaan, which we expect to close in the first quarter.

In Sugar & Bioenergy, we expect 2018 EBIT of $50 to $70 million. Results are expected to be seasonally weak in the first half of the year. We expect a loss of approximately $40 million in the first quarter, due to carrying over an exceptionally low inventory balance from 2017 into the intercrop period due to the reduced crush volume.

In Fertilizer, we expect EBIT of approximately $25 million.

Additionally, we expect the following for 2018 (excluding the Loders Croklaan acquisition): a tax rate range of 18% to 22% reflecting the impacts of U.S. and Argentina tax reform; net interest expense in the range of $225 to $245 million; capital expenditures of approximately $650 million, of which approximately $150 million is related to sugarcane milling; and depreciation, depletion and amortization of approximately $625 million.

For earnings history and earnings-related data on Bunge Limited (BG) click here.