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 RAISES THIRD-QUARTER 2005 ONGOING EARNINGS PER SHARE ESTIMATES
ST. LOUIS (June 7, 2005) - Monsanto Company (NYSE: MON) today announced
that it is increasing estimates for the company's third-quarter 2005 ongoing
earnings per share (EPS) guidance on the strength of the performance from the
company's seeds and traits business.
Driven by strong sales of biotech traits in the United States, increased
corn seed sales, increased cotton trait revenues in India, and favorable timing
of Roundup sales in the United States and Europe, Monsanto now expects ongoing
EPS to be approximately $1.05 for the third quarter, or approximately $0.12 to
$0.17 on an as-reported basis. The previous EPS expectation for the third
quarter was roughly $1.00 per share on an ongoing basis, or in the range of
$0.15 to $0.22 on an as-reported basis. The updated as-reported EPS guidance
reflects more precise estimates for in-process R&D write-offs associated with
the Seminis and Emergent acquisitions, which now have been completed. (See
reconciliation table with this news release.)
"Our seeds and traits business continues to generate positive momentum, and
the results we've seen so far indicate that our core strategy is not only on
track, but continues to outpace the expectations we had as our fiscal year
began," said Hugh Grant, Monsanto's chairman, president and chief executive
officer.
The company's full-year ongoing EPS guidance and guidance for free cash
flow remain unchanged. Monsanto will report its complete third-quarter earnings
Wednesday, June 29.
Monsanto Company (NYSE: MON) is a leading industry provider of
technology-based solutions and agricultural products that improve farm
efficiency and food quality. For more information on Monsanto, see
www.monsanto.com.
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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: 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(R) agricultural
herbicides; 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 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.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
The presentation of ongoing earnings per share (EPS) is not intended to replace
net income, cash flows, financial position or comprehensive income, and it is
not a measure of financial performance as determined in accordance with
generally accepted accounting principles (GAAP) in the United States. The
following table reconciles ongoing EPS to the 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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Third Quarter Fiscal
Year 2005 Target
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Diluted Earnings per Share $0.12 - $0.17
Estimated In-Process R&D Write-Off Related to the
Seminis and Emergent Acquisitions $0.88 - $0.93
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Diluted Earnings per Share from Ongoing Operations $1.05
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