ST. LOUIS, Nov. 10, 2009 /PRNewswire-FirstCall/ -- The positive mix lift expected as farmers choose to upgrade to next-generation technologies allows Monsanto Company (NYSE: MON) to reconfirm its commitment to double its 2007 gross profit in 2012, Monsanto President and CEO Hugh Grant will tell investors today. Speaking at the company's biennial investor day, Grant will indicate that accelerated launches for its Genuity(TM) SmartStax(TM) corn and Genuity(TM) Roundup Ready 2 Yield® soybean products, along with accelerated trait penetration in Latin America, create the opportunity and set the priorities as the company's management outlines the operational plans to meet its 2012 financial and commercial targets.
Monsanto's management team will also indicate the company remains on track to meet its fiscal-year 2010 guidance targets.
"Our growth strategy from 2010 through 2012 boils down to three operational imperatives: the conversion to Genuity SmartStax in U.S. corn, the farmer choice of upgrading to the Genuity Roundup Ready 2 Yield platform in U.S. soybeans, and the opportunity as Latin America increases its technology adoption," said Grant. "We are positioned as an agricultural technology company that can consistently deliver innovation on farm every year, and our R&D prowess makes it possible for us to deliver the positive mix lift across our product offerings. This creates real value for farmer customers that will in turn strengthen their businesses."
As part of the event, Grant and Monsanto's executive team will outline the operational plans and expectations for these three key factors. Specifically, the company expects:
"If the last few years have been about demonstrating the value of our stacked trait platform, the task of the next two years is about expanding the opportunity for growers to experience that platform," Grant said. "That means we have to offer a technology touch to every farmer, and today we have in our toolkit more differentiated tools to do that than ever before."
Beyond 2012: The Industry's Best R&D Pipeline
Beyond 2012, Monsanto's opportunity reflects its industry-leading R&D pipeline. Chief Technology Officer Robb Fraley and senior technology leaders will unveil a number of significant advances in the company's R&D pipeline, highlighting the following:
Monsanto affirmed its full-year ongoing 2010 EPS guidance is in the range of $3.10 to $3.30. Monsanto's full-year 2010 EPS guidance on an as-reported basis is in the range of $2.85 to $3.11. (For a reconciliation of 2010 EPS, see note 1.)
The company also confirmed guidance for free cash flow for fiscal year 2010 will be in the range of $900 million to $1 billion, including the after-tax cash effect from a restructuring of approximately $250 million. The company expects net cash provided by operating activities to be $2 billion to $2.2 billion, and net cash required by investing activities to be approximately $1.1 billion to $1.2 billion for fiscal year 2010. (For a reconciliation of free cash flow, see note 1.)
In recommitting to its 2012 commitment to double gross profit by making farmers more profitable through its innovative products, Monsanto expects total-company gross profit in 2012 in the range of $8.6 billion to $8.8 billion, with gross-profit contribution from its Seeds and Genomics platform representing $7.3 billion to $7.5 billion of the 2012 target.
Investor Meeting Webcast and Materials
A live webcast of Monsanto's investor briefing is available through Monsanto's web site at: http://www.monsanto.com/investors. Materials related to today's event posted at this site include: the presentation agenda, briefing slides, downloadable audio files of each presentation, and speaker bios. Following the live broadcast, a replay of the webcast will be available on the Monsanto web site for three weeks. To access presentation slides and the simultaneous audio webcast of the presentation, visitors may need to download Windows Media Player(TM) prior to listening to the webcast.
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: www.monsanto.com. Follow our business on Twitter at www.twitter.com/MonsantoCo, on Facebook at www.facebook.com/MonsantoCo, or subscribe to our News Release RSS Feed.
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.
Notes to editors: Monsanto and the Vine design, Genuity, SmartStax, Roundup Ready 2 Yield, VT Double PRO and VT Triple PRO are trademarks owned by Monsanto Technology LLC.
Monsanto Company Selected Financial Information (Dollars in millions) Unaudited 1. Reconciliation of EPS and Free Cash Flow. The presentations of 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 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. Fiscal Year 2010 Guidance -------- Diluted Earnings per Share $2.85-$3.11 Restructuring Charges $0.19-$0.25 ----------- Diluted Earnings per Share from Ongoing Business $3.10-$3.30 ------------------------------------------------ -----------
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 2010 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 2010 Guidance -------- Net Cash Provided by Operating Activities $2,000-2,200 Net Cash Required by Investing Activities (1,100-1,200) ------------- Free Cash Flow $900-1,000 Net Cash Required by Financing Activities N/A Effect of Exchange Rate Changes on Cash and Cash Equivalents N/A ------------- Net Increase in Cash and Cash Equivalents N/A Cash and Cash Equivalents at Beginning of Period N/A ------------- Cash and Cash Equivalents at End of Period N/A ------------------------------------------ -------------
CONTACT Media - Kelli Powers (314-694-4003)
SOURCE Monsanto Company
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