Bunge Names New Acting Chief Executive Officer

Bunge Limited (NYSE: BG), announced that Board member Gregory A. Heckman, has been appointed Acting Chief Executive Officer, effective immediately. He replaces Soren Schroder, who previously announced his intention to step down.

The Company also provided an update on its full-year 2018 financial results. On a preliminary basis, Bunge now expects full-year 2018 total segment adjusted EBIT to be below the previously disclosed USD 1.045 bn low end of the outlook range. Net debt at year end 2018 was approximately USD 5 bn, reduced from approximately USD 7 bn at the end of the third quarter 2018.

For the full year 2018, Bunge estimates an adjusted EBIT shortfall of approximately USD 90-100 m in the Agribusiness segment and a shortfall of approximately USD 60-70 m in the Sugar and Bioenergy segment, compared to the low end of the previously disclosed ranges.

The Agribusiness shortfall was largely due to the reduction in value of the Company’s Brazilian soybean ownership as factors related to China trade and demand caused Brazilian prices to converge with U.S. prices. The Sugar and Bioenergy shortfall was primarily due to lower Brazilian ethanol prices, and a weather-related reduction in yields as a poor crop year came to a close.

Commenting on Mr. Heckman’s appointment, Bunge’s Non-Executive Board Chair, Kathleen Hyle said, “Greg has been a valuable addition to our Board and Strategic Review Committee and we are pleased to appoint him as our Acting CEO. Our Committee has benefited from his counsel and expertise. With Greg in this role, we have a greater opportunity to leverage his perspective, deep industry knowledge and leadership experience, as we take action to improve our results and sharpen our operational focus and execution.”

Mr. Heckman, 56, joined the Bunge Board in 2018. He has over 30 years of experience in the agriculture, energy and food processing industries, having served as CEO of The Gavilon Group and in senior executive roles at ConAgra Foods.

Bunge’s CEO search committee continues its work and will seek to conclude the search as soon as practicable, while ensuring that the process is thorough and deliberate.