Exhibit 99
| Monsanto Company | ||
| 800 North Lindbergh Blvd | ||
| St. Louis, Missouri 63167 |
| Release | Immediately | ||||
| Contact | Media: | Lee Quarles (314-694-2330) | |||
| Analysts: | Scarlett Lee Foster (314-694-8148) | ||||
MONSANTO DELIVERS RECORD SECOND-QUARTER RESULTS ON STRONG GROWTH
OF U.S. AND INTERNATIONAL CORN BUSINESSES, GROWING DEMAND FOR ROUNDUP
St. Louis — April 2, 2008
| Second | Second | Six | Six | |||||||||||||||
| ($ in millions) | Quarter | Quarter | Months | Months | ||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||||
| Net Sales by Segment | ||||||||||||||||||
| Corn seed and traits | $ | 1,747 | $ | 1,192 | $ | 2,214 | $ | 1,552 | ||||||||||
| Soybean seed and traits | 455 | 373 | 617 | 543 | ||||||||||||||
| Cotton seed and traits | 40 | 23 | 82 | 48 | ||||||||||||||
| Vegetable and fruit seed | 206 | 174 | 336 | 274 | ||||||||||||||
| All other crops seeds and traits | 97 | 68 | 132 | 93 | ||||||||||||||
| TOTAL Seeds and Genomics | $ | 2,545 | $ | 1,830 | $ | 3,381 | $ | 2,510 | ||||||||||
| Roundup and other glyphosate-based herbicides | $ | 982 | $ | 530 | $ | 1,990 | $ | 1,179 | ||||||||||
| All other agricultural productivity products | 252 | 249 | 507 | 459 | ||||||||||||||
| TOTAL Agricultural Productivity | $ | 1,234 | $ | 779 | $ | 2,497 | $ | 1,638 | ||||||||||
TOTAL Net Sales | $ | 3,779 | $ | 2,609 | $ | 5,878 | $ | 4,148 | ||||||||||
Gross Profit | $ | 2,229 | $ | 1,448 | $ | 3,284 | $ | 2,130 | ||||||||||
Operating Expenses | $ | 755 | $ | 616 | $ | 1,417 | $ | 1,176 | ||||||||||
| Interest (Income) Expense — Net | $ | (7) | $ | 3 | $ | (3) | $ | 6 | ||||||||||
| Other (Income) Expense — Net | $ | (203) | $ | 6 | $ | (184) | $ | 20 | ||||||||||
Net Income | $ | 1,129 | $ | 543 | $ | 1,385 | $ | 633 | ||||||||||
Diluted (Loss) Earnings per Share | $ | 2.02 | $ | 0.98 | $ | 2.48 | $ | 1.14 | ||||||||||
| Items Affecting Comparability — EPS Impact | ||||||||||||||||||
| Loss on Discontinued Operations | — | $ | 0.01 | — | $ | 0.02 | ||||||||||||
| Solutia Claim Settlement | $ | (0.23) | $ | (0.23) | ||||||||||||||
Diluted (Loss) Earnings per Share from Ongoing Business(For the definition of ongoing EPS, see note 1.) | $ | 1.79 | $ | 0.99 | $ | 2.25 | $ | 1.16 | ||||||||||
Effective Tax Rate (Continuing Operations) | 33% | 34% | 32% | 31% | ||||||||||||||
- more -
| Second | Second | Six | Six | |||||||||||||||
| Comparison as a Percent of Net Sales: | Quarter | Quarter | Months | Months | ||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||||
| Gross profit | 59 | % | 56 | % | 56 | % | 51 | % | ||||||||||
| Selling, general and administrative expenses (SG&A) | 14 | % | 16 | % | 17 | % | 20 | % | ||||||||||
| Research and development expenses (excluding acquired in-process R&D) | 6 | % | 7 | % | 7 | % | 9 | % | ||||||||||
| Income before income taxes and minority interest | 45 | % | 32 | % | 35 | % | 22 | % | ||||||||||
| Net Income | 30 | % | 21 | % | 24 | % | 15 | % | ||||||||||
Comment from Monsanto Chairman, President and Chief Executive Officer Hugh Grant:
“The performance of our seeds and traits business has us on track for another exceptional year and well positioned to support our five-year strategic growth plan. Between now and 2012, we are the only agriculture company that can point to consistent growth irrespective of commodity price swings, fluctuations in planted acres or the popularity of ethanol. Over the next five years we’re poised to set the bar higher as we deliver a game changing platform every other year, real products that create real value for the farmer and for our shareowners.”
“The performance of our seeds and traits business has us on track for another exceptional year and well positioned to support our five-year strategic growth plan. Between now and 2012, we are the only agriculture company that can point to consistent growth irrespective of commodity price swings, fluctuations in planted acres or the popularity of ethanol. Over the next five years we’re poised to set the bar higher as we deliver a game changing platform every other year, real products that create real value for the farmer and for our shareowners.”
Operations Update
Monsanto reported record net sales of $3.8 billion for the second quarter of fiscal year 2008, which were 45 percent higher than sales in the same period in fiscal year 2007. Key drivers for the quarter were increased revenues from the company’s U.S. corn seed and traits business as well as increased revenues from its Brazilian corn seed business. Results in the quarter also reflected increased revenues from the company’s Roundup agricultural herbicides globally.
Monsanto reported record net sales of $3.8 billion for the second quarter of fiscal year 2008, which were 45 percent higher than sales in the same period in fiscal year 2007. Key drivers for the quarter were increased revenues from the company’s U.S. corn seed and traits business as well as increased revenues from its Brazilian corn seed business. Results in the quarter also reflected increased revenues from the company’s Roundup agricultural herbicides globally.
Monsanto saw record sales of $5.9 billion in the first six months of the company’s fiscal year 2008. The year-to-date sales were 42 percent higher than sales compared with the same period in fiscal year 2007. Key contributors to the company’s growth included increased sales of Roundup and other glyphosate-based herbicides globally as well as higher worldwide corn seed and traits revenues.
Monsanto reported net income of $1.1 billion in the second quarter of fiscal year 2008, compared with reported net income of $543 million in the same period last year. For the first six months of fiscal year 2008, Monsanto reported net income of $1.4 billion, which was significantly higher than net income of $633 million the company realized in the first six months of fiscal year 2007.
Earnings per share (EPS) for the second quarter was $2.02 on an as-reported basis, and was $1.79 on an ongoing basis. Earnings per share (EPS) for the first six months of fiscal year 2008 were $2.48 on an as-reported basis, and $2.25 on an ongoing basis. Both periods were affected favorably by $0.23 per share from the settlement of Monsanto’s claims in conjunction with Solutia’s emergence from bankruptcy. In recognition of its claims and contributions, Monsanto received $163 million in cash and approximately 2.5 million shares of new Solutia common stock during the second quarter. (For a reconciliation of ongoing EPS, see page 1).
Cash Flow
For second quarter fiscal year 2008, net cash provided by operating activities was $1.9 billion, compared with $520 million in the same period of fiscal year 2007. Net cash required by investing activities was $404 million for the second quarter of fiscal year 2008, compared with $230 million for the same quarter of fiscal year 2007. As a result, free cash flow was $1.5 billion for the second quarter fiscal year 2008, compared with $290 million for the same quarter in fiscal year 2007. (For a reconciliation of free cash flow, see note 1.) Improved earnings, higher accruals for marketing programs because of higher sales, and higher customer prepayments contributed to the increase in free cash flow in the first half of 2008. Cash received for the settlement of the Solutia-related claim also contributed to the increase in the period. Net cash required by financing activities was $142 million for the second quarter of fiscal year 2008, compared with $200 million for the same period in fiscal year 2007.
For second quarter fiscal year 2008, net cash provided by operating activities was $1.9 billion, compared with $520 million in the same period of fiscal year 2007. Net cash required by investing activities was $404 million for the second quarter of fiscal year 2008, compared with $230 million for the same quarter of fiscal year 2007. As a result, free cash flow was $1.5 billion for the second quarter fiscal year 2008, compared with $290 million for the same quarter in fiscal year 2007. (For a reconciliation of free cash flow, see note 1.) Improved earnings, higher accruals for marketing programs because of higher sales, and higher customer prepayments contributed to the increase in free cash flow in the first half of 2008. Cash received for the settlement of the Solutia-related claim also contributed to the increase in the period. Net cash required by financing activities was $142 million for the second quarter of fiscal year 2008, compared with $200 million for the same period in fiscal year 2007.
Outlook
The second and third quarters of fiscal year 2008 are expected to be the primary drivers for the company’s fiscal year 2008 EPS results. These quarters reflect both the relative size of the company’s U.S. business and the importance of its seeds and traits business to Monsanto’s earnings. The company historically records a loss in the fourth quarter.
The second and third quarters of fiscal year 2008 are expected to be the primary drivers for the company’s fiscal year 2008 EPS results. These quarters reflect both the relative size of the company’s U.S. business and the importance of its seeds and traits business to Monsanto’s earnings. The company historically records a loss in the fourth quarter.
Monsanto’s full-year 2008 EPS is expected to be in the range of $3.38 to $3.48 on a reported basis and in the range of $3.15 and $3.25 on an ongoing basis. (For a reconciliation of ongoing EPS, see page 1).
The company now expects that its free cash flow for fiscal year 2008 will be $1.3 billion. The company expects net cash provided by operating activities to be in the range of $2.45 billion, and net cash required by investing activities to be approximately $1.15 billion for fiscal year 2008. (For a reconciliation of free cash flow, see note 1.) This revised free cash flow guidance reflects planned capital expenditures to de-bottleneck Monsanto’s glyphosate production facility in Luling, Louisiana, which were announced separately today.
Monsanto’s full-year 2008 EPS and free cash flow guidance does not reflect the effect of the recently-announced agreement to acquire De Ruiter Seeds.
— Please turn page for additional information —
Performance Against Key Growth Drivers Between 2007 and 2012
Between 2007 and the end of 2012, Monsanto’s business is poised to effectively double the gross profit potential of its business. This growth will be led by the company’s performance against six key areas within its global seeds and traits business (see below). These drivers were recently outlined at a November 2007 investor event. The chart below outlines Monsanto’s progress against its six growth drivers. It will be published as part of the company’s second- and fourth-quarter earnings announcements of its 2008 fiscal year.
Between 2007 and the end of 2012, Monsanto’s business is poised to effectively double the gross profit potential of its business. This growth will be led by the company’s performance against six key areas within its global seeds and traits business (see below). These drivers were recently outlined at a November 2007 investor event. The chart below outlines Monsanto’s progress against its six growth drivers. It will be published as part of the company’s second- and fourth-quarter earnings announcements of its 2008 fiscal year.
| Growth Drivers and 2012 Commitments | Fiscal Year 2008 Performance Against Milestones | |||||||
| U.S. Corn Business | ¡ | 2 to 3 percentage point gain in DEKALB | ||||||
| ¡ | Grow U.S. seed footprint by 1 to 2 | ¡ | 1 to 2 percentage point gain in American Seeds Inc. | |||||
| share points annually in DEKALB | ¡ | Expect 26 to 28 million acres of triple-trait technology in | ||||||
| brand | fiscal year 2008 | |||||||
| ¡ | Expand triple trait penetration to 45 to 55 million acres by 2010 and bridge to SmartStax launch | |||||||
| International Corn Business | ¡ | Expect 5 percentage point gain in Argentina | ||||||
| ¡ | Grow international seed footprint by 1 | ¡ | Plan to hold share at 40 percent in Brazil | |||||
| to 2 share points annually | ¡ | Monsanto’s first double-stack corn trait approval in | ||||||
| ¡ | Stem losses in Brazil and hold share in | Argentina | ||||||
| 2008; grow business in 2009 and | ¡ | YieldGard Corn Borer approval in Brazil, including | ||||||
| beyond | hybrid approvals | |||||||
| ¡ | Set the table for biotech trait ramp up | |||||||
| outside the United States | ||||||||
| International Soybean Business | ¡ | Regulatory approvals received for Roundup Ready 2 | ||||||
| ¡ | Release Roundup Ready 2 Yield | Yield soybean product in Japan, Philippines and | ||||||
| soybeans on 1 to 2 million acres in | Taiwan | |||||||
| 2009 | ¡ | Penetration of Roundup Ready soybeans is expected | ||||||
| ¡ | Grow penetration of Roundup Ready | to be 55 percent of the planted acres in Brazil in fiscal | ||||||
| soybeans in Brazil to create footprint | year 2008, or up from 50 percent in fiscal year 2007 | |||||||
| for Roundup Ready 2 Yield by insect- | ||||||||
| protected soybeans | ||||||||
| International Cotton Business | ¡ | U.S. production plans implemented to accelerate | ||||||
| ¡ | Apply breeding technology to diverse | conversion of second-generation traits in 2009 | ||||||
| Delta and Pine Land germplasm | ¡ | India planting season not yet under way, plans in place | ||||||
| ¡ | Convert cotton portfolio to second- | to support conversion of Bollgard II in India | ||||||
| generation traits in the United States | ||||||||
| and India | ||||||||
| Vegetable Seeds Business | ¡ | Gross profit as a percent of sales expected to be in | ||||||
| ¡ | Improve working capital and margins | mid-fifties for the full year | ||||||
| through operational excellence, pricing | ¡ | Single-digit price increases through first half | ||||||
| to value and shift to richer mix | ¡ | On track for completion of 2,500 markers for tomatoes | ||||||
| ¡ | Launch new products with increased | and peppers and 1,500 markers for an 11 additional | ||||||
| value and accelerate launches via use | crops by the 2009 target; a fifty percent increase in the | |||||||
| of molecular markers | number of markers for the latter group | |||||||
| Research and Development (R&D) | ¡ | Averaged an 8.4 bu/acre yield advantage of DEKALB | ||||||
| Pipeline | in U.S. corn in 2007 | |||||||
| ¡ | Continue to drive breeding gains | ¡ | Averaged a 14 bu/acre yield advantage of DEKALB | |||||
| across crop platforms | triple U.S. corn market in 2007 | |||||||
| ¡ | Deliver value in established trait | ¡ | Five biotech projects advanced phases, including both | |||||
| pipeline and unlock opportunity in yield | first- and second-generation drought-tolerant corn | |||||||
| and stress BASF collaboration | projects | |||||||
Seeds and Genomics Segment Detail
| ($ in millions) | Net Sales | Gross Profit | ||||||||||||||||||||||||||||||||
| Second | Second | Six | Six | Second | Second | Six | Six | |||||||||||||||||||||||||||
| Quarter | Quarter | Months | Months | Quarter | Quarter | Months | Months | |||||||||||||||||||||||||||
| Seeds and Genomics | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||||||||||
Corn seed and traits | $ | 1,747 | $ | 1,192 | $ | 2,214 | $ | 1,552 | $ | 1,173 | $ | 790 | $ | 1,458 | $ | 1,013 | ||||||||||||||||||
Soybean seed and traits | 455 | 373 | 617 | 543 | 269 | 256 | 380 | 378 | ||||||||||||||||||||||||||
Cotton seed and traits | 40 | 23 | 82 | 48 | 33 | 28 | 57 | 43 | ||||||||||||||||||||||||||
Vegetable and fruit seed | 206 | 174 | 336 | 274 | 113 | 87 | 177 | 138 | ||||||||||||||||||||||||||
All other crops seeds and traits | 97 | 68 | 132 | 93 | 46 | 32 | 57 | 37 | ||||||||||||||||||||||||||
TOTAL Seeds and Genomics | $ | 2,545 | $ | 1,830 | $ | 3,381 | $ | 2,510 | $ | 1,634 | $ | 1,193 | $ | 2,129 | $ | 1,609 | ||||||||||||||||||
| ($ in millions) | Earnings Before Interest & Taxes (EBIT) | |||||||||||||||||
| Second | Second | Six | Six | |||||||||||||||
| Quarter | Quarter | Months | Months | |||||||||||||||
| Seeds and Genomics | 2008 | 2007 | 2008 | 2007 | ||||||||||||||
EBIT(For a reconciliation of EBIT, | ||||||||||||||||||
| see note 1.) | $ | 1,077 | $ | 744 | $ | 1,057 | $ | 745 | ||||||||||
Unusual Items Affecting EBIT | ||||||||||||||||||
| Loss on Discontinued Operations | None | $ | (5 | ) | None | $ | (13 | ) | ||||||||||
The Seeds and Genomics segment consists of the company’s global seeds and related traits business, and genetic technology platforms.
Sales for Monsanto’s Seeds and Genomics segment were $2.5 billion for the second quarter of fiscal year 2008, or 39 percent higher than sales in the same period last year.
During the second quarter of fiscal year 2008, the company realized increased revenue from its branded corn seed and traits business in the United States, Brazil and Europe based on strong customer demand. Results in the quarter also reflected increased revenue from its U.S. soybean seed and traits business as well as increased sales of the company’s Seminis vegetable seed business.
This year, the company’s national and regional corn seed brands are poised to gain market share in the United States. Monsanto currently estimates that its DEKALB corn seed brand could grow by 2 to 3 percentage points, a substantial gain for a seventh consecutive season. Monsanto also estimates that its American Seeds Inc. corn seed brands could grow by 1 to 2 percentage points.
Growth in the quarter was also driven by strong adoption of its higher-margin triple-trait corn technology in its national and regional corn seed brands. Monsanto technology trait acres were up across the board, with triple- trait corn technology expected to be grown on an estimated 26-to-28 million acres in the United States, or an increase of more than 39 percent compared with the prior year. Monsanto now estimates that its portfolio mix of the higher-margin triple-trait technology in its DEKALB brand will be at the upper end of its previously announced range of 55 to 60 percent, and that the mix in its American Seeds Inc brands will be approximately 55 percent.
Sales for the segment were also higher for the first six months of the 2008 fiscal year compared with sales in the same period last year. First-half segment sales were $3.4 billion, or 35 percent higher than first-half segment sales in fiscal year 2007. The key drivers for growth in the second quarter were also the primary contributors to growth in the first-half of the fiscal year.
Agricultural Productivity Segment Detail
| ($ in millions) | Net Sales | Gross Profit | ||||||||||||||||||||||||||||||||
| Second | Second | Six | Six | Second | Second | Six | Six | |||||||||||||||||||||||||||
| Quarter | Quarter | Months | Months | Quarter | Quarter | Months | Months | |||||||||||||||||||||||||||
| Agricultural Productivity | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||||||||||
Roundup and other glyphosate-based herbicides | $ | 982 | $ | 530 | $ | 1,990 | $ | 1,179 | $ | 478 | $ | 155 | $ | 965 | $ | 349 | ||||||||||||||||||
All other agricultural productivity products | 252 | 249 | 507 | 459 | 117 | 100 | 190 | 172 | ||||||||||||||||||||||||||
TOTAL Agricultural Productivity | $ | 1,234 | $ | 779 | $ | 2,497 | $ | 1,638 | $ | 595 | $ | 255 | $ | 1,155 | $ | 521 | ||||||||||||||||||
| ($ in millions) | Earnings Before Interest & Taxes (EBIT) | |||||||||||||||||
| Second | Second | Six | Six | |||||||||||||||
| Quarter | Quarter | Months | Months | |||||||||||||||
| Agricultural Productivity | 2008 | 2007 | 2008 | 2007 | ||||||||||||||
EBIT(For a reconciliation of EBIT, see note 1.) | $ | 601 | $ | 78 | $ | 986 | $ | 181 | ||||||||||
Unusual Items Affecting EBIT | ||||||||||||||||||
| Solutia Claim Settlement | $ | 210 | None | $ | 210 | None | ||||||||||||
The Agricultural Productivity segment consists primarily of crop protection products, residential lawn-and-garden herbicide products, and the company’s animal agriculture business.
Sales for Monsanto’s Agricultural Productivity segment were $1.2 billion for the second quarter of fiscal year 2008, or 58 percent higher compared with sales in the same period last year. Higher sales of Roundup and other glyphosate-based herbicides globally contributed to the results in the quarter.
Sales for the segment were higher for the first six months of the 2008 fiscal year compared with sales in the same period last year. First-half segment sales were $2.5 billion or 52 percent higher than first-half segment sales in fiscal year 2007. Improved sales of Roundup and other glyphosate-based herbicides globally were a key driver for growth in the first half of the fiscal year. Improved pricing, volume and mix of branded Roundup herbicides also contributed to the increase in both periods.
Gross profit for the segment in the first six months was $1.2 billion or more than double the gross profit realized in the same period last year. The increase in the period related primarily to higher pricing of branded Roundup herbicides as well as higher volumes.
Webcast Information
In conjunction with this announcement, Monsanto will hold a conference call at 8:30 a.m. central time (9:30 a.m. eastern time) today. The call will focus on these results and future expectations. The call may also include a discussion of Monsanto’s strategic initiatives, product performance and other matters related to the company’s business.
Presentation slides and a simultaneous audio webcast of the conference call may be accessed by visiting the company’s web site at www.monsanto.com and clicking on “Investor Information.” Visitors may need to download Windows Media Player™ prior to listening to the webcast. Following the live broadcast, a replay of the webcast will be available on the Monsanto Web site for three weeks.
About Monsanto Company
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. For more information on Monsanto, see www.monsanto.com.
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. For more information on Monsanto, see www.monsanto.com.
Cautionary Statements Regarding Forward-Looking Information:
Certain statements contained in this release are “forward-looking statements,” such as statements concerning the company’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 reports 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.
Certain statements contained in this release are “forward-looking statements,” such as statements concerning the company’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 reports 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.
Notes to editors: Bollgard, DEKALB, Roundup Ready 2 Yield, Seminis, YieldGard and Roundup are trademarks of Monsanto Company and its wholly owned subsidiaries.
References to Roundup herbicides in this release mean Roundup branded herbicides, excluding lawn-and-garden herbicide products.
-oOo-
Monsanto Company
Selected Financial Information
(Dollars in millions, except per share amounts)
Unaudited
Selected Financial Information
(Dollars in millions, except per share amounts)
Unaudited
| Statements of Consolidated Operations | Three Months | Three Months | Six Months | Six Months | ||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| Feb. 29, 2008 | Feb. 28, 2007 | Feb. 29, 2008 | Feb. 28, 2007 | |||||||||||||
Net Sales | $ | 3,779 | $ | 2,609 | $ | 5,878 | $ | 4,148 | ||||||||
| Cost of Goods Sold | 1,550 | 1,161 | 2,594 | 2,018 | ||||||||||||
Gross Profit | 2,229 | 1,448 | 3,284 | 2,130 | ||||||||||||
Operating Expenses: | ||||||||||||||||
| Selling, General and Administrative Expenses | 534 | 430 | 995 | 812 | ||||||||||||
| Research and Development Expenses | 221 | 186 | 421 | 364 | ||||||||||||
| Acquired In-Process Research and Development | — | — | 1 | — | ||||||||||||
| Total Operating Expenses | 755 | 616 | 1,417 | 1,176 | ||||||||||||
Income From Operations | 1,474 | 832 | 1,867 | 954 | ||||||||||||
| Interest Expense | 32 | 34 | 68 | 67 | ||||||||||||
| Interest Income | (39 | ) | (31 | ) | (71 | ) | (61 | ) | ||||||||
| Solutia-Related (Income) Expenses | (204 | ) | 9 | (187 | ) | 19 | ||||||||||
| Other Expense (Income) — Net | 1 | (3 | ) | 3 | 1 | |||||||||||
Income Before Income Taxes and Minority Interest | 1,684 | 823 | 2,054 | 928 | ||||||||||||
| Income Tax Provision | 555 | 277 | 662 | 290 | ||||||||||||
| Minority Interest (Income) Expense | — | — | 7 | (3 | ) | |||||||||||
Income From Continuing Operations | $ | 1,129 | $ | 546 | $ | 1,385 | $ | 641 | ||||||||
Discontinued Operations: | ||||||||||||||||
| Loss from Operations of Discontinued Businesses | — | (5 | ) | — | (13 | ) | ||||||||||
| Income Tax Benefit | — | (2 | ) | — | (5 | ) | ||||||||||
Loss on Discontinued Operations | — | (3 | ) | — | (8 | ) | ||||||||||
Net Income | $ | 1,129 | $ | 543 | $ | 1,385 | $ | 633 | ||||||||
EBIT (see note 1) | $ | 1,678 | $ | 822 | $ | 2,043 | $ | 926 | ||||||||
Basic Earnings (Loss) per Share | ||||||||||||||||
| Income from Continuing Operations | $ | 2.06 | $ | 1.00 | $ | 2.53 | $ | 1.18 | ||||||||
| Loss on Discontinued Operations | — | — | — | $ | (0.02 | ) | ||||||||||
Net Income | $ | 2.06 | $ | 1.00 | $ | 2.53 | $ | 1.16 | ||||||||
Diluted Earnings (Loss) per Share | ||||||||||||||||
| Income from Continuing Operations | $ | 2.02 | $ | 0.99 | $ | 2.48 | $ | 1.16 | ||||||||
| Loss on Discontinued Operations | — | $ | (0.01 | ) | — | $ | (0.02 | ) | ||||||||
Net Income | $ | 2.02 | $ | 0.98 | $ | 2.48 | $ | 1.14 | ||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||
| Basic | 547.8 | 543.6 | 547.0 | 543.4 | ||||||||||||
| Diluted | 559.2 | 554.3 | 558.5 | 554.0 | ||||||||||||
Monsanto Company
Selected Financial Information
(Dollars in millions)
Unaudited
Selected Financial Information
(Dollars in millions)
Unaudited
| Condensed Statements of Consolidated Financial Position | As of | As of | ||||||
| Feb. 29, 2008 | Aug. 31, 2007 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
| Cash and Cash Equivalents | $ | 2,285 | $ | 866 | ||||
| Trade Receivables — Net of Allowances of $235 and $217, Respectively | 2,238 | 1,499 | ||||||
| Miscellaneous Receivables | 466 | 407 | ||||||
| Deferred Tax Assets | 328 | 449 | ||||||
| Inventories | 2,248 | 1,719 | ||||||
| Other Current Assets | 111 | 144 | ||||||
Total Current Assets | 7,676 | 5,084 | ||||||
| Property, Plant and Equipment — Net of Accumulated Depreciation of $3,518 and $3,260, Respectively | 2,813 | 2,656 | ||||||
| Goodwill | 2,773 | 2,625 | ||||||
| Other Intangible Assets — Net | 1,377 | 1,415 | ||||||
| Noncurrent Deferred Tax Assets | 802 | 730 | ||||||
| Long-Term Receivables — Net of Allowances of $166 and $131, Respectively | 587 | 79 | ||||||
| Other Assets | 565 | 394 | ||||||
Total Assets | $ | 16,593 | $ | 12,983 | ||||
Liabilities and Shareowners’ Equity | ||||||||
Current Liabilities: | ||||||||
| Short-Term Debt, Including Current Portion of Long-Term Debt | $ | 260 | $ | 270 | ||||
| Accounts Payable | 709 | 649 | ||||||
| Income Taxes Payable | 234 | 150 | ||||||
| Accrued Compensation and Benefits | 265 | 349 | ||||||
| Accrued Marketing Programs | 646 | 517 | ||||||
| Deferred Revenues | 924 | 260 | ||||||
| Grower Production Accruals | 143 | 86 | ||||||
| Dividends Payable | 96 | 96 | ||||||
| Miscellaneous Short-Term Accruals | 810 | 698 | ||||||
Total Current Liabilities | 4,087 | 3,075 | ||||||
| Long-Term Debt | 1,155 | 1,150 | ||||||
| Postretirement Liabilities | 497 | 542 | ||||||
| Long-Term Portion of Solutia-Related Reserve | 136 | 119 | ||||||
| Long-Term Deferred Revenue | 550 | — | ||||||
| Other Liabilities | 869 | 594 | ||||||
| Shareowners’ Equity | 9,299 | 7,503 | ||||||
Total Liabilities and Shareowners’ Equity | $ | 16,593 | $ | 12,983 | ||||
| Debt to Capital Ratio: | 13 | % | 16 | % | ||||
Monsanto Company
Selected Financial Information
(Dollars in millions)
Unaudited
Selected Financial Information
(Dollars in millions)
Unaudited
| Statements of Consolidated Cash Flows | Six Months | Six Months | ||||||
| Ended | Ended | |||||||
| Feb. 29, 2008 | Feb. 28, 2007 | |||||||
Operating Activities: | ||||||||
| Net Income | $ | 1,385 | $ | 633 | ||||
| Adjustments to Reconcile Cash Provided by Operations: | ||||||||
| Items That Did Not Require (Provide) Cash: | ||||||||
| Depreciation and Amortization Expense | 281 | 257 | ||||||
| Bad-Debt Expense | 38 | 23 | ||||||
| Receipt of Securities from Solutia Settlement | (38 | ) | — | |||||
| Stock-Based Compensation Expense | 41 | 35 | ||||||
| Excess Tax Benefits from Stock-Based Compensation | (118 | ) | (34 | ) | ||||
| Deferred Income Taxes | 156 | 7 | ||||||
| Equity Affiliate Expense — Net | 3 | 21 | ||||||
| Acquired In-Process Research and Development | 1 | — | ||||||
| Other Items | (52 | ) | 5 | |||||
| Changes in Assets and Liabilities That Provided (Required) Cash, Net of Acquisitions: | ||||||||
| Trade Receivables | (505 | ) | (585 | ) | ||||
| Inventories | (439 | ) | (170 | ) | ||||
| Deferred Revenues | 603 | 291 | ||||||
| Accounts Payable and Other Accrued Liabilities | 673 | 110 | ||||||
| PCB Litigation Settlement Receivable | 16 | 16 | ||||||
| Solutia-Related Liabilities | (11 | ) | (17 | ) | ||||
| Net Investment Hedge Settlement | (64 | ) | (4 | ) | ||||
| Other Items | (93 | ) | (68 | ) | ||||
Net Cash Provided by Operating Activities | 1,877 | 520 | ||||||
Cash Flows Provided (Required) by Investing Activities: | ||||||||
| Maturities of Short-Term Investments | 59 | 22 | ||||||
| Capital Expenditures | (314 | ) | (182 | ) | ||||
| Acquisitions of Businesses, Net of Cash Acquired | (103 | ) | (62 | ) | ||||
| Purchases of Long-Term Equity Securities | (78 | ) | — | |||||
| Technology and Other Investments | (16 | ) | (24 | ) | ||||
| Other Investments and Property Disposal Proceeds | 48 | 16 | ||||||
Net Cash Required by Investing Activities | (404 | ) | (230 | ) | ||||
Cash Flows Provided (Required) by Financing Activities: | ||||||||
| Net Change in Financing With Less Than 90-Day Maturities | (19 | ) | (5 | ) | ||||
| Short-Term Debt Reductions | (9 | ) | (8 | ) | ||||
| Long-Term Debt Proceeds | — | 4 | ||||||
| Long-Term Debt Reductions | — | (71 | ) | |||||
| Payments on Other Financing | (1 | ) | (3 | ) | ||||
| Treasury Stock Purchases | (121 | ) | (71 | ) | ||||
| Stock Option Exercises | 82 | 42 | ||||||
| Excess Tax Benefits From Stock-Based Compensation | 118 | 34 | ||||||
| Dividend Payments | (192 | ) | (122 | ) | ||||
Net Cash Required by Financing Activities | (142 | ) | (200 | ) | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 88 | 15 | ||||||
Net Increase in Cash and Cash Equivalents | 1,419 | 105 | ||||||
Cash and Cash Equivalents at Beginning of Period | 866 | 1,460 | ||||||
Cash and Cash Equivalents at End of Period | $ | 2,285 | $ | 1,565 | ||||
Monsanto Company
Selected Financial Information
(Dollars in millions)
Unaudited
Selected Financial Information
(Dollars in millions)
Unaudited
| 1. | EBIT, Ongoing EPS and Free Cash Flow: The presentations of EBIT, ongoing EPS and free cash flow are not intended to replace net income (loss), cash flows, financial position or comprehensive income (loss), and they are not measures of financial performance as determined in accordance with generally accepted accounting principles (GAAP) in the United States. The following tables reconcile EBIT, ongoing EPS and free cash flow to the respective most directly comparable financial measure calculated in accordance with GAAP. | |
| Reconciliation of EBIT to Net Income (Loss): EBIT is defined as earnings (loss) before interest and taxes. Earnings (loss) is intended to mean net income (loss) as presented in the Statements of Consolidated Operations under GAAP. The following table reconciles EBIT to the most directly comparable financial measure, which is net income (loss). |
| Three Months Ended | Six Months Ended | |||||||||||||||
| Feb. 29, | Feb. 28, | Feb. 29. | Feb. 28, | |||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| EBIT — Seeds and Genomics Segment | $ | 1,077 | $ | 744 | $ | 1,057 | $ | 745 | ||||||||
| EBIT — Agricultural Productivity Segment | 601 | 78 | 986 | 181 | ||||||||||||
EBIT— Total | 1,678 | 822 | 2,043 | 926 | ||||||||||||
| Interest (Income) Expense — Net | (7 | ) | 3 | (3 | ) | 6 | ||||||||||
Income Tax Provision(A) | 556 | 276 | 661 | 287 | ||||||||||||
Net Income | $ | 1,129 | $ | 543 | $ | 1,385 | $ | 633 | ||||||||
| (A) | Includes the income tax provision on minority interest income. |
Reconciliation of EPS to Ongoing EPS: Ongoing EPS is calculated excluding certain after-tax items which Monsanto does not consider part of ongoing operations. The reconciliation of EPS to Ongoing EPS for the second quarter and six months ended Feb. 29, 2008, and Feb. 28, 2007, is included on page 1 of this release.
Reconciliation of Free Cash Flow: Free cash flow represents the total of cash flows from operating activities and investing activities, as reflected in the Statements of Consolidated Cash Flows presented in this release. With respect to the fiscal year 2008 free cash flow guidance, Monsanto does not include any estimates or projections of Net Cash Provided (Required) by Financing Activities because in order to prepare any such estimate or projection, Monsanto would need to rely on market factors and conditions that are outside of its control.
| Fiscal Year | Six Months Ended | |||||||||||
| 2008 | Feb. 29, | Feb. 28, | ||||||||||
| Guidance | 2008 | 2007 | ||||||||||
| Net Cash Provided by Operating Activities | $ | 2,450 | $ | 1,877 | $ | 520 | ||||||
| Net Cash Required by Investing Activities | (1,150 | ) | (404 | ) | (230 | ) | ||||||
Free Cash Flow | $ | 1,300 | 1,473 | 290 | ||||||||
| Net Cash Required by Financing Activities | N/A | (142 | ) | (200 | ) | |||||||
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | N/A | 88 | 15 | |||||||||
Net Increase in Cash and Cash Equivalents | N/A | 1,419 | 105 | |||||||||
Cash and Cash Equivalents at Beginning of Period | N/A | 866 | 1,460 | |||||||||
Cash and Cash Equivalents at End of Period | N/A | $ | 2,285 | $ | 1,565 | |||||||
- oOo -