EXHIBIT 99
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MONSANTO COMPANY
800 NORTH LINDBERGH BLVD
ST. LOUIS,MISSOURI 63167
RELEASE Immediately
CONTACT Media: Lee Quarles (314-694-2330)
Investors: Scarlett Lee Foster (314-694-8148)
MONSANTO COMPANY INCREASES FIRST-QUARTER EARNINGS PER SHARE GUIDANCE
Company Reconfirms Full-Year 2006 Free Cash Flow and Earnings Guidance
ST. LOUIS (Dec. 5, 2005) - Monsanto Company (NYSE: MON) announced today
that it is increasing its first-quarter 2006 earnings per share (EPS) guidance.
Monsanto now expects that 20 cents per share of its full-year EPS on both
a reported and ongoing basis will occur in the first quarter. The company
revised its first-quarter EPS guidance upward from its earlier estimate for the
quarter of approximately 10 cents per share.
"While our first quarter historically has been a smaller part of our
overall fiscal year, we believe we are off to a good start," said Hugh Grant,
chairman, president and chief executive officer of Monsanto. "Early indications
from our seeds and traits business suggest continued growth in the upcoming
season, and this growth will be a key contributor to our leadership position in
the years ahead."
Stronger-than-expected results for cotton traits in Australia and for
Roundup herbicides in Europe and the United States, in part related to earlier
timing of demand particularly in Europe, are the key reasons driving the
improvement in the quarter.
In addition, Monsanto said that early order patterns for its corn seed
and traits business indicate another strong season ahead for its U.S. business.
Monsanto now believes that U.S. acres planted with its Roundup Ready and
YieldGard Rootworm insect-protected corn trait technologies could be
approximately 15 percent higher collectively than the company's previous
estimate of a total of 38 million acres for both traits. The company noted that
potential gains from its seeds and traits business could be partially offset by
higher raw material costs from suppliers given the effect from the 2005
hurricane season.
"We continue to monitor the effect of changes in petroleum-based products
and natural gas prices on our raw materials," said Terry Crews, chief financial
officer of Monsanto. "Our full-year guidance anticipates that our suppliers will
pass on a portion of their higher raw material costs to us."
Monsanto now expects that its full-year 2006 EPS guidance will be toward
the upper end of its previously announced range of $2.35 to $2.50, on a reported
and ongoing basis. The company confirmed
that its guidance for free cash flow in fiscal year 2006 remains the same
in the range of $825 million to $900 million. (For a reconciliation of free cash
flow, see note 1.)
Monsanto's Brett Begemann, executive vice president and international
commercial lead, will discuss the earnings guidance as part of his presentation
at the Citigroup Investment Research 16th Annual Chemical Conference in New
York. Begemann will address investors at 8 a.m. (EST) on Wednesday, Dec. 7, as
part of the conference.
Begemann's presentation slides and a simultaneous audio webcast of the
presentation will be available through the Citigroup Investment Research
conference Web site. To access the webcast of this presentation, go to:
http://www.veracast.com/webcasts/citigroup/chemicals05/47203184.cfm.
Following the live broadcast, a replay of the webcast will be available
for 30 days through the same link. Begemann's presentation slides with also be
posted to Monsanto's Web site.
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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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,
including proceedings related to Solutia Inc.; developments related to foreign
currencies and economies; successful completion and operation of recent and
proposed 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 filings with the SEC. 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: Roundup, Roundup Ready and YieldGard are registered trademarks
owned by Monsanto Company and its wholly owned subsidiaries.
References to Roundup herbicides in this release mean Roundup branded
herbicides, excluding lawn-and-garden herbicide products.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
Free Cash Flow: The presentation of free cash flow is not intended to replace
net income (loss), cash flows, financial position or comprehensive income
(loss), and 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 free cash flow to the respective most
directly comparable financial measure calculated in accordance with GAAP.
1. 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 provided under the caption "Fiscal Year
2006 Target," 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.
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Fiscal Year
Total Monsanto Company and Subsidiaries: 2006
Target
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Net Cash Provided (Required) by Operations $1,175-$1,250
Net Cash Provided (Required) by Investing Activities $(350)
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Free Cash Flow $825 - $900
Net Cash Provided (Required) by Financing Activities N/A
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Net Increase (Decrease) in Cash and Cash Equivalents N/A
Cash and Cash Equivalents at Beginning of Period N/A
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Cash and Cash Equivalents at End of Period N/A
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