In Legwork Year of Execution, Monsanto is Set to Deliver on 2010 Guidance Commitments
February 24 2010 - 7:00AM
PR Newswire (US)
Chief Financial Officer Confirms Full-Year Earnings Per Share
Outlook ST. LOUIS, Feb. 24, 2010 /PRNewswire-FirstCall/ -- Monsanto
Company (NYSE: MON) is focused on delivering its guidance
commitments as it executes in a pivotal year in its growth plan,
Chief Financial Officer Carl Casale will tell investors tomorrow at
the Morgan Stanley Basic Materials conference. With a practical
operating plan in place, Casale will reiterate the company's
continued expectation that full-year ongoing 2010 earnings per
share will be in the range of $3.10 to $3.30. The company now
expects approximately 50 percent of the full-year guidance to be
realized in the company's second quarter, reflecting potential
timing shifts into the company's second half. This is related to
the effect of the late 2009 harvest on soybean shipments,
increasing contribution from international corn in the company's
overall earnings mix and a return to historic seasonality in
earnings of the Roundup® and other agricultural herbicides
business. 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.) Casale will outline the key success measures
for 2010. Notably, Casale will indicate the company's ability to
deliver its earnings commitments in a year where the company is
launching two game-changing new products, resetting its Roundup®
herbicide business, and implementing a restructuring plan to
solidify operational leverage to create the right platform for
growth going forward. "If we achieve these three things, then this
year will be a success in providing firm footing for our path to
2012," Casale will say. "We're not playing for 2010 alone, but we
recognize that the work we do in 2010 sets up the opportunity
through 2012." Casale also will say the company is on track to
deliver on its projected restructuring savings. Those savings
create operating leverage that complements the company's operating
plan and financial outlook in 2010, building on a disciplined
approach to selling, general and administrative (SG&A) expenses
to create sustainable structural benefits in the business. "We knew
2010 would be the toughest year in our plan, but we are committed
to establishing a successful platform for the remainder of our
plan," Casale will say. "This year has seen two of the largest
product launches in our history on top of a significant
restructuring, and I remain confident that we will learn and adjust
and build on the momentum over the next two years." Genuity(TM)
SmartStax(TM) corn and Genuity(TM) Roundup Ready 2 Yield® represent
the largest broad-acre introductions of new traited seed products
in the history of the industry, and Monsanto is committed to
ensuring the product performance and customer experience in 2010
supports the growth in both platforms going forward. With
widespread availability in 2010, Monsanto projects that a broad
base of farmers will have the opportunity to experience both
Genuity(TM) SmartStax(TM) and Genuity(TM) Roundup Ready 2 Yield® on
their farm, which will support significant adoption in 2011 and
2012. Monsanto will provide a full business update on the U.S.
season as a part of its second-quarter earnings report, April 7. A
live webcast of Casale's presentation will be available through
Monsanto's web site at: http://www.monsanto.com/investors.
Following tomorrow's live broadcast set for 11:45 a.m. C.T., 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:
http://www.monsanto.com/. Follow our business on Twitter at
http://www.twitter.com/MonsantoCo, on Facebook at
http://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, and Roundup Ready 2 Yield
are trademarks owned by Monsanto Technology LLC. All other
trademarks are the property of their respective owners. Monsanto
Company Selected Financial Information (Dollars in millions)
Unaudited 1. Reconciliation of EPS to Ongoing EPS: The presentation
of ongoing EPS 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 ongoing EPS to the
respective most directly comparable financial measure calculated in
accordance with GAAP. 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 ---------------------------------------
----------- CONTACT: Media - Kelli Powers (314-694-4003)
DATASOURCE: Monsanto Company CONTACT: Media, Kelli Powers of
Monsanto Company, +1-314-694-4003 Web Site:
http://www.monsanto.com/
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