ST. LOUIS, Oct. 2 /PRNewswire-FirstCall/ -- Monsanto Company (NYSE:
MON) today raised its fiscal year 2008 earnings-per-share (EPS) guidance
again, citing a strong conclusion to the fiscal year from its Roundup and
other glyphosate-related herbicide business paired with the previously
announced better-than-anticipated seeds-and-traits performance.
Monsanto indicated that it now expected ongoing EPS guidance for 2008
in the range of $3.64 and revised its reported EPS guidance in the range of
$3.59. In mid-September, the company indicated it expected ongoing EPS
guidance in the range of $3.58 to $3.60, with reported EPS in the range of
$3.49 to $3.51.
"Our business continues to be strong on all fronts, and that's
reflected in both our performance and in our confidence in our outlook
going forward," said Hugh Grant, Monsanto's chairman, president and chief
executive officer. "Our Roundup business continues to represent a
sustainable platform that we can pair with the accelerated growth in our
seeds-and-traits business to more than double the size of our total company
gross profit from 2007 to 2012."
Increased Outlook for Roundup
As a part of the announcement on the year-end expectations today,
Monsanto also increased the targets for the 2009 fiscal year and its 2012
long-term targets for the Roundup business.
Previously, Monsanto indicated it expected the full year gross profit
contribution from Roundup for 2009 to be in the range of $2.1 billion to
$2.2 billion. Given additional clarity going into fiscal year 2009,
Monsanto now expects that Roundup will generate in the range of $2.3
billion to $2.4 billion in gross profit in fiscal year 2009. The company
also increased the 2012 gross-profit target to $1.9 billion from its
original target of $1.8 billion.
Monsanto recently completed a comprehensive analysis of the worldwide
glyphosate industry through 2012, noting a number of key contributors to
the company's increased expectations:
-- The company's expectation for Roundup is based on a branded price
level in the range of $16 to $18 per gallon, which is slightly lower than
branded price range for the recently completed 2008 fiscal year.
-- As anticipated, the global supply-demand environment has been coming
into balance. On the volume side, demand is expected to continue to
increase globally in the single-digit range through the 2012 horizon.
-- The revised outlook for the business continues to anticipate
additional glyphosate supply entering the market -- both from increases in
Monsanto's capacity and from competitive sources to meet the demand growth.
-- Monsanto has been the lowest-cost producer of Roundup herbicide for
more than 35 years. Phosphorus-related costs represent less than 10 percent
of Monsanto's cost of goods for Roundup production.
"The analysis we've done on the worldwide glyphosate industry continues
to confirm for us that there is a growing market whose fundamental cost
structure has changed," said Grant.
"From the perspective of Monsanto's business, it's important to be
clear that Roundup alone does not drive Monsanto's growth plan. Our ability
to more than double the size our of total company gross profit from 2007 to
2012 is a function of the accelerated opportunity we see in our global
seeds and traits business," said Grant.
Grant noted that the increased guidance for 2008 reflects previously
communicated better-than-anticipated results from its seeds-and-traits
business. The company reiterated that its corn seeds and traits platform
was expected to continue to drive growth in 2009, with a target of 25 to 30
percent gross profit growth over its increased 2008 performance.
Monsanto will report its complete fourth-quarter and full-year 2008
financial results, including its 2009 outlook on Oct. 8. Financial results
and supporting information for the earnings release will be available
through the investor section of Monsanto's website at
http://www.monsanto.com/investors.
About Monsanto Company
Monsanto Company is a leading global provider of technology-based
solutions and agricultural products that improve farm productivity and food
quality. Monsanto remains focused on enabling both small-holder and
large-scale farmers to produce more from their land while conserving more
of our world's natural resources such as water and energy. To learn more
about our business and our commitments, please visit:
http://www.monsanto.com.
Monsanto Company Cautionary Statements Regarding Forward-Looking
Information:
Certain statements contained in this release are "forward-looking
statements," such as statements concerning Monsanto's anticipated financial
results, current and future product performance, regulatory approvals,
business and financial plans and other non-historical facts. These
statements are based on current expectations and currently available
information. However, since these statements are based on factors that
involve risks and uncertainties, the company's actual performance and
results may differ materially from those described or implied by such
forward-looking statements. Factors that could cause or contribute to such
differences include, among others: continued competition in seeds, traits
and agricultural chemicals; the company's exposure to various
contingencies, including those related to intellectual property protection,
regulatory compliance and the speed with which approvals are received, and
public acceptance of biotechnology products; the success of the company's
research and development activities; the outcomes of major lawsuits;
developments related to foreign currencies and economies; successful
operation of recent acquisitions; fluctuations in commodity prices;
compliance with regulations affecting our manufacturing; the accuracy of
the company's estimates related to distribution inventory levels; the
company's ability to fund its short-term financing needs and to obtain
payment for the products that it sells; the effect of weather conditions,
natural disasters and accidents on the agriculture business or the
company's facilities; and other risks and factors detailed in the company's
most recent report on Forms 10-Q and 10-K. Undue reliance should not be
placed on these forward-looking statements, which are current only as of
the date of this release. The company disclaims any current intention or
obligation to update any forward-looking statements or any of the factors
that may affect actual results.
Monsanto Company
Selected Financial Information
(Dollars in millions)
Unaudited
1) Reconciliation of EPS to Ongoing EPS: Ongoing EPS is calculated
excluding certain after-tax items which Monsanto does not consider part of
ongoing operations.
Fiscal Previous
Year Fiscal Year
2008 2008
Target Target
Diluted Earnings per Share $3.59 $3.49 - $3.51
Income on Discontinued Operations $(0.03) $(0.03)
In-Process R&D Write-Off Related to the
De Ruiter Acquisition $0.31 $0.35
Solutia Claim Settlement $(0.23) $(0.23)
Diluted Earnings per Share from Ongoing Basis $3.64 $3.58 - $3.60
(A)Previous 2008 guidance and fiscal year 2007 results are updated to
reflect discontinued operations of Monsanto's dairy business.
SOURCE Monsanto Company
 back to top
Related links:
http://www.monsanto.com
http://www.prnewswire.com/comp/114341.html/
CONTACT:
Media, Lee Quarles, +1-314-694-2330, or
Investors, Scarlett Foster, +1-314-694-8148, both of Monsanto
Company
|
