EXHIBIT 99
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MONSANTO COMPANY
800 NORTH LINDBERGH BLVD
ST. LOUIS, MISSOURI 63167
RELEASE Immediately
CONTACT Media: Bryan Hurley (314-694-8387)
Analysts: Scarlett Lee Foster (314-694-8148)
MONSANTO MANAGEMENT RAISES SECOND-QUARTER AND FISCAL YEAR 2005 EARNINGS PER
SHARE ESTIMATES
ST. LOUIS (March 29, 2005) - Monsanto Company (NYSE: MON) today announced
that it is increasing estimates for the company's second-quarter earnings per
share (EPS) and raising fiscal-year 2005 guidance as the company's seeds and
traits business continues to generate better-than-expected results.
Solid year-to-date performance globally, higher revenues from corn and
soybean traits in the United States, increased corn seed sales in the
Europe-Africa region, and higher revenues for Roundup and non-branded
glyphosate-based herbicides in all world areas outside of the United States are
driving the company's business performance.
As a result, Monsanto now expects EPS to be in the range of $0.85 to $0.97
on a reported basis, and $2.00 to $2.05 on an ongoing basis for the 2005 fiscal
year. (See reconciliation table with this news release.) Previously, Monsanto
provided updated EPS guidance for fiscal year 2005, with EPS on an ongoing
business basis expected to be toward the upper end of the $1.85 to $2.00 range,
or in the range of $0.71 to $0.93 on an as-reported basis.
For the second quarter, Monsanto now expects EPS on a reported basis to be
approximately $1.37 per share, and approximately $1.38 per share on an ongoing
basis.
For the first half of the fiscal year, Monsanto expects EPS to be $1.23 per
share on a reported basis and $1.53 per share on an ongoing business basis.
Guidance for the first half of the fiscal year has been calculated using diluted
shares outstanding. Basic shares outstanding were used previously to calculate
first-quarter EPS, as required under generally accepted accounting principles in
the United States when a loss from continuing operations is reported.
Management reiterated its expectation for free cash flow guidance for
fiscal-year 2005. Monsanto expects cash from operations to be $1.2 billion.
Including free cash used and to be used for the Seminis and Emergent purchases,
the company expects net cash required by investing activities to be $2.1
billion. As a result, the company expects free cash flow to be negative $900
million for the 2005 fiscal year.
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Monsanto will report its complete second-quarter earnings Wednesday, April
6.
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.
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Note to Editors: Roundup is a registered trademark owned by Monsanto Company and
its wholly owned subsidiaries.
Cautionary Statements Regarding Forward-Looking Information:
Certain statements contained in this release are "forward-looking statements,"
such forward-looking statements may include as statements concerning the
company's anticipated financial results, current and future product performance,
regulatory approvals, currency impact, 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: the company's exposure to various
contingencies, including those related to Solutia Inc., litigation, intellectual
property, regulatory compliance (including seed quality), environmental
contamination and antitrust ;successful completion and operation of recent and
proposed acquisitions; fluctuations in exchange rates and other developments
related to foreign currencies and economies; increased generic and branded
competition for the company's Roundup herbicide; the accuracy of the company's
estimates and projections, for example, those with respect to product returns
and grower use of the company's products and related distribution inventory
levels; the effect of weather conditions and commodity markets on the
agriculture business; the success of the company's research and development
activities and the speed with which regulatory authorizations and product
launches may be achieved; domestic and foreign social, legal and political
developments, especially those relating to agricultural products developed
through biotechnology; the company's ability to successfully market new and
existing products in new and existing domestic and international markets; the
company's ability to obtain payment for the products that it sells; the
company's ability to achieve and maintain protection for its intellectual
property; the effects of the company's accounting policies and changes in
generally accepted accounting principles; the company's ability to fund its
short-term financing needs; and other risks and factors detailed in the
company's filings with the U.S. Securities and Exchange Commission. 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 revise or update any forward-looking statements or
any of the factors that may affect actual results, whether as a result of new
information, future events or otherwise.
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RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
The presentations of ongoing earnings per share (EPS) and free cash flow are not
intended to replace net income, cash flows, financial position or comprehensive
income, 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 ongoing EPS and free cash flow to the
respective most directly comparable financial measure calculated in accordance
with GAAP.
Reconciliation of EPS to Ongoing EPS: Ongoing EPS is calculated excluding
certain after-tax items which Monsanto does not consider part of ongoing
operations.
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Fiscal Year 2005 First Half Second Quarter
Target Fiscal Year Fiscal Year
2005 Estimate 2005 Estimate
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Diluted Earnings per Share $0.85 - $0.97 $1.23 $1.37
Estimated Purchase Accounting Adjustments $0.78 - $0.85 - -
Solutia-Related Charge $0.67 $0.67 -
Tax Benefit on Loss from European Wheat and Barley business $(0.39) $(0.39) -
Restructuring Charges - Net $0.03 $0.03 $0.02
Income on Discontinued Operations $(0.01) $(0.01) $(0.01)
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Diluted Earnings per Share from Ongoing Operations $2.00 - $2.05 $1.53 $1.38
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Reconciliation of Free Cash Flow: Free cash flow represents the total of cash
flows from operations and investing activities. With respect to the projected
free cash flow guidance for 2005, 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 2005
Target (in millions)
--------------------
--------------------
Net Cash Provided by Operations $1,200
Net Cash Required by Investing Activities $(2,100)
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Free Cash Flow $(900)
Net Cash Provided (Required) by Financing Activities N/A
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Net Increase (Decrease) in Cash and Cash Equivalents N/A
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