Monsanto Sees Record Sales in Fiscal Year 2007; Seeds and Traits Business Contributes to Strong Fourth Quarter and Year-E...(riated Earnings $0.04 ...)

Cumulative Effect of Change in

Accounting Principle $0.01 $0.01

Diluted (Loss) Earnings per Share

from Ongoing $(0.18) $(0.21) $2.00 $1.30

Business (For the definition of

ongoing EPS, see note 2.)

Effective Tax Rate (Continuing

Operations) 30% 36% 30% 32%

Fourth Fourth Fiscal Fiscal

Comparison as a Percent of Net Sales: Quarter Quarter Year Year

2007 2006 2007 2006

Gross profit 42% 35% 50% 48%

Selling, general and administrative

expenses (SG&A) 38% 34% 22% 22%

Research and development expenses 14% 14% 9% 10%

Income (Loss) before income taxes and

minority interest (25)% (14)% 16% 14%

Net Income (Loss) (13)% (10)% 12% 9%

Comment from Monsanto Chairman, President and Chief Executive Officer Hugh Grant:

"This year was a benchmark year for our company, as more and more farmers throughout the world rewarded us for the value our products are delivering to their farms. We realized record sales for a fourth consecutive year, made several strategic acquisitions and rewarded shareowners with our largest dividend increase in our history. Our results this year have created a strong foundation for continued earnings growth for our business leading into 2008 and well into the next decade."

Market Conditions

The 2007 harvest season is well under way throughout the Northern Hemisphere. U.S. corn farmers are harvesting what the U.S. Department of Agriculture (USDA) now estimates to be the largest corn crop eve
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