Oct 8, 2008
ST. LOUIS, Oct. 8 /PRNewswire-FirstCall/ --
Fourth Fourth Fiscal Fiscal ($ in millions) Quarter Quarter Year Year 2008 2007 2008 2007 Net Sales by Segment Corn seed and traits $353 $364 $3,542 $2,807 Soybean seed and traits 110 33 1,174 901 Cotton seed and traits 89 59 450 319 Vegetable seeds 223 168 744 612 All other crops seeds and traits 166 118 459 325 TOTAL Seeds and Genomics $941 $742 $6,369 $4,964 Roundup and other glyphosate-based herbicides $936 $632 $4,094 $2,568 All other agricultural productivity products 174 144 902 817 TOTAL Agricultural Productivity $1,110 $776 $4,996 $3,385 TOTAL Net Sales $2,051 $1,518 $11,365 $8,349 Gross Profit $960 $643 $6,177 $4,230 Operating Expenses $1,186 $995 $3,456 $2,821 Interest (Income) Expense - Net $(14) $10 $(22) $16 Other Expense (Income) - Net $7 $33 $(183) $64 Net (Loss) Income $(172) $(210) $2,024 $993 Diluted (Loss) Earnings per Share (See note 1.) $(0.31) $(0.39) $3.62 $1.79 Items Affecting Comparability - EPS Impact Income on Discontinued Operations $(0.01) $(0.13) $(0.04) $(0.15) Acquired In-Process R&D (De Ruiter and Delta and Pine Land) $0.29 $0.34 $0.29 $0.34 Solutia Claim Settlement $(0.23) Diluted (Loss) Earnings per Share from Ongoing Business (For the definition of ongoing EPS, see note 1.) $(0.03) $(0.18) $3.64 $1.98 Effective Tax Rate (Continuing Operations) 21% 29% 31% 30% Fourth Fourth Fiscal Fiscal Comparison as a Percent of Net Sales: Quarter Quarter Year Year 2008 2007 2008 2007 Gross profit 47% 42% 54% 51% Selling, general and administrative expenses (SG&A) 35% 39% 20% 22% Research and development expenses (excluding acquired in-process R&D) 15% 15% 9% 9% Income (Loss) before income taxes and minority interest (11)% (26)% 26% 16% Net Income (Loss) (8)% (14)% 18% 12%
Comment from Monsanto Chairman, President and Chief Executive Officer Hugh Grant:
"Across the industry, every company is dealing with historic volatility caused by uncertainty in the commodities and credit markets, but our fundamental belief is that if we focus on the things in our business that we control, and we do those things well, there's significant growth ahead for our business. As the markets sort themselves out, our basic premise will be the same - greater grain demand drives the need for more yield, more yield requires more innovation, and the companies that innovate will grow. That's exactly who we are."
Monsanto reported record net sales of $2 billion for the fourth quarter of fiscal year 2008, which were 35 percent higher than sales in the same period in fiscal year 2007. Key drivers for the quarter were higher sales of branded Roundup herbicides and soybean seeds and traits. Sales of vegetable seeds also improved primarily from the inclusion of the De Ruiter vegetable seeds business, which was not part of the company's business in the prior fourth quarter.
Monsanto saw record net sales of $11.4 billion in the company's fiscal year 2008, which were 36 percent higher than sales in fiscal year 2007. Key contributors to the company's growth included increased sales of Roundup and other glyphosate-based herbicides globally, higher worldwide corn seed and traits revenue, increased revenue from the company's U.S. soybean and cotton seeds and traits businesses. Increased revenue from the company's vegetable seed portfolio also contributed to results in the year.
Monsanto reported a net loss of $172 million in the fourth quarter of fiscal year 2008, compared with a reported net loss of $210 million in the same period last year. The company previously disclosed an expected loss for the fourth quarter as a result of seasonality in certain product sales and in- process research and development (IPR&D) expenses related to the acquisition of the De Ruiter vegetable seeds business. For fiscal year 2008, Monsanto reported net income of $2 billion, which was significantly higher than net income of $993 million in fiscal year 2007.
Loss per share for the fourth quarter was $(0.31) on an as-reported basis, and was $(0.03) on an ongoing basis. Earnings per share (EPS) for fiscal year 2008 was $3.62 on an as-reported basis, and $3.64 on an ongoing basis. (For a reconciliation of ongoing EPS, see page 1.) As-reported EPS results for both periods reflect the effect of discontinued operations for the Posilac® brand and related dairy business, as well as IPR&D charges. EPS results for the full year were also affected favorably by $0.23 per share after tax from the settlement of Monsanto's claims in conjunction with Solutia's emergence from bankruptcy.
For fiscal year 2008, net cash provided by operating activities was $2.8 billion, compared with $1.9 billion in the same period in 2007. Net cash required by investing activities was $2 billion in fiscal year 2008, compared with net cash required of $1.9 billion for the same period last year. As a result, free cash flow was a source of $772 million for fiscal year 2008, compared with a use of $57 million in fiscal year 2007. (For a reconciliation of free cash flow, see note 1.) Free cash flow in fiscal year 2008 supported the investment of $1 billion in acquisitions and technology investments, a reinvestment of an additional $918 million in capital expenditures as well as the return of $419 million of cash to shareowners through dividends, and a $361 million share repurchase investment. Net cash required by financing activities was $102 million for fiscal year 2008, compared with net cash required of $583 million last year.
Monsanto said that its full-year 2009 EPS guidance, on an as-reported and ongoing basis, is in the range of $4.20 to $4.40. The company's 2009 EPS guidance reflects a projected growth rate of approximately 15 percent to 20 percent from the fiscal year 2008 EPS ongoing base of $3.64 per share.
The company also provided guidance for free cash flow for fiscal year 2009 in the range of $1.8 billion. The company expects net cash provided by operating activities to be $3 billion, and net cash required by investing activities to be approximately $1.2 billion for fiscal year 2009. (For a reconciliation of free cash flow, see note 1.)
Monsanto also noted that it expects that SG&A expense as a percent of sales for fiscal year 2009 will be in the range of 19 percent and that its R&D expenses as a percent of sales for fiscal year 2009 are expected to be in the range of 9.5 percent to 10 percent.
Monsanto announced that it now expects that gross profit for the entire company will grow to $9.5 billion to $9.75 billion for 2012, or roughly two- and-a-quarter times the company's 2007 base. This estimate exceeds the company's prior gross profit estimate of $8.6 billion to $9.1 billion. The company also noted that it expects to realize a compound annual growth rate for gross profit of 18 percent to 20 percent through 2012.
Trait Acreage Report
As part of today's announcement, Monsanto published its year-end report on the company's biotech trait acreage for fiscal year 2008. This report is available on Monsanto's web site at: http://www.monsanto.com/monsanto/layout/investor/company/crop.asp.
Performance Against Key Growth Drivers Between 2007 and 2012
Between 2007 and the end of 2012, Monsanto's business is poised to effectively double the gross profit potential of its business. This growth will be led by the company's performance against six key areas within its global seeds and traits business (see below). These drivers were outlined at the company's November 2007 investor event. The chart below outlines Monsanto's progress against its six growth drivers during its 2008 fiscal year.
U.S. Corn Business GROWTH DRIVERS AND 2012 COMMITMENTS o Grow U.S. seed footprint by 1 to 2 share points annually in DEKALB brand o Expand triple trait penetration to 45 million to 55 million acres by 2010 and bridge to SmartStax launch FISCAL YEAR 2008 PERFORMANCE AGAINST MILESTONES o 2.5 percentage point gain in DEKALB o 1.5 percentage point gain in American Seeds Inc. o 29 million acres planted with triple-trait technology International Corn Business GROWTH DRIVERS AND 2012 COMMITMENTS o Grow international seed footprint by 1 to 2 share points annually o Stem losses in Brazil and hold share in 2008; grow business in 2009 and beyond o Set the table for biotech trait ramp-up outside the United States FISCAL YEAR 2008 PERFORMANCE AGAINST MILESTONES o 6 percentage point gain in Argentina corn seed region o Held corn seed share at 40 percent in Brazil o India corn seed share decreased approximately 3 percentage points o EU 27 corn seed share decreased approximately 1 percentage point o Launched first double-stack corn trait in Argentina o Launched YieldGard Corn Borer technology in Brazil o Acquisition of Semillas Cristiani Burkard, a leading seed company in Central America Global Soybean Business GROWTH DRIVERS AND 2012 COMMITMENTS o Release Roundup Ready 2 Yield soybeans on 1 million to 2 million acres in 2009 o Grow penetration of Roundup Ready soybeans in Brazil to create footprint for Roundup Ready 2 Yield with insect-protected soybeans FISCAL YEAR 2008 PERFORMANCE AGAINST MILESTONES o Regulatory approvals received for Roundup Ready 2 Yield soybean product in China, Japan, Philippines and Taiwan o Penetration of Roundup Ready soybeans grew to 54 percent of the planted acres in Brazil in fiscal year 2008, up from 51 percent in fiscal year 2007 Global Cotton Business GROWTH DRIVERS AND 2012 COMMITMENTS o Apply breeding technology to diverse Delta and Pine Land germplasm o Convert cotton portfolio to second-generation traits in the United States and India FISCAL YEAR 2008 PERFORMANCE AGAINST MILESTONES o Mix of second-generation, double-stacked traits increased to more than 65 percent in the United States o Approximately 4 million farmers cultivated Bollgard and Bollgard II cotton on approximately 76 percent of India's total cotton acres in 2008. o India sees strong adoption of Bollgard II as acres increase 275 percent year on year to 4.5 million Vegetable Seeds Business GROWTH DRIVERS AND 2012 COMMITMENTS o Improve working capital and margins through operational excellence, pricing to value and shift to richer mix o Launch new products with increased value and accelerate launches via use of molecular markers FISCAL YEAR 2008 PERFORMANCE AGAINST MILESTONES o Gross profit as a percent of sales grew to 53 percent for the full year o Acquisition of De Ruiter Seeds, one of the world's leading protected-culture vegetable seed breeding companies o On track for completion of 2,500 markers for tomatoes and peppers and 1,500 markers for an additional 11 crops by the 2009 target; a 50 percent increase in the number of markers for the latter group Research and Development (R&D) Pipeline GROWTH DRIVERS AND 2012 COMMITMENTS o Continue to drive breeding gains across crop platforms o Deliver value in established trait pipeline and unlock opportunity in yield and stress BASF collaboration FISCAL YEAR 2008 PERFORMANCE AGAINST MILESTONES o Roundup Ready 2 Yield soybeans completed key regulatory approvals in global areas, a key step towards the product's commercial introduction in 2009· o 10 biotech projects advanced in phases, including both first- and second-generation drought-tolerant corn projects o Nearly 175 locations of yield and stress field trials in progress in 2008 Seeds and Genomics Segment Detail ($ in millions) Net Sales Gross Profit Seeds and Fourth Fourth Fiscal Fiscal Fourth Fourth Fiscal Fiscal Genomics Quarter Quarter Year Year Quarter Quarter Year Year 2008 2007 2008 2007 2008 2007 2008 2007 Corn seed and traits $353 $364 $3,542 $2,807 $151 $178 $2,174 $1,721 Soybean seed and traits 110 33 1,174 901 76 7 725 588 Cotton seed and traits 89 59 450 319 61 45 313 267 Vegetable seeds 223 168 744 612 124 57 394 267 All other crops seeds and traits 166 118 459 325 97 72 251 171 TOTAL Seeds and Genomics $941 $742 $6,369 $4,964 $509 $359 $3,857 $3,014 ($ in millions) Earnings Before Interest & Taxes (EBIT) Fourth Fourth Fiscal Fiscal Seeds and Genomics Quarter Quarter Year Year 2008 2007 2008 2007 EBIT (For a reconciliation of $(443) $(397) $1,200 $905 EBIT, see note 1.) Unusual Items Affecting EBIT Acquired In-Process R&D (De Ruiter and Delta and Pine Land) $(161) $(186) $(161) $(186) Income on Discontinued Operations None $50 None $45
The Seeds and Genomics segment consists of the company's global seeds and related traits business, and genetic technology platforms.
Sales for Monsanto's Seeds and Genomics segment were $941 million for the fourth quarter of fiscal year 2008, or 27 percent higher than sales in the same period last year.
During the fourth quarter of fiscal year 2008, the company realized improved sales from its soybean seed and traits business. Results in the quarter also benefited from improved sales of vegetable seeds with the inclusion of sales from the De Ruiter vegetable seeds business, which were not part of the company's business in the prior fourth quarter. Fourth-quarter sales from Monsanto's corn seed and traits business were down 3 percent because of timing of branded sales and licensee royalties.
Monsanto realized record segment sales of $6.4 billion for fiscal year 2008, which were 28 percent higher compared with sales last fiscal year. The key driver for growth in the fiscal year was higher global corn seed and traits revenue, which increased 26 percent compared with the same period last year. Strong customer demand for the company's branded corn seed products contributed to a seventh consecutive year of share gains in the U.S. corn seed region for our DEKALB brand. This year the brand gained 2.5 percentage points.
The company's performance in the year also benefited from improved soybean seed and traits revenue, as farmer demand increased and as more acres were planted to soybeans in the United States.
Results in the year also benefited from improved sales of cotton seeds and traits, as well as improved sales of vegetable seeds. These results included the company's acquisitions of Delta and Pine Land Company, which was completed in the fourth quarter of 2007, and the De Ruiter vegetable seeds business, which the company acquired in the fourth quarter of 2008.
Agricultural Productivity Segment Detail ($ in millions) Net Sales Gross Profit Agricultural Fourth Fourth Fiscal Fiscal Fourth Fourth Fiscal Fiscal Productivity Quarter Quarter Year Year Quarter Quarter Year Year 2008 2007 2008 2007 2008 2007 2008 2007 Roundup and other glyphosate- based herbicides $936 $632 $4,094 $2,568 $417 $219 $1,976 $854 All other agricultural productivity products 174 144 902 817 34 65 344 362 TOTAL Agricultural Productivity $1,110 $776 $4,996 $3,385 $451 $284 $2,320 $1,216 ($ in millions) Earnings Before Interest & Taxes (EBIT) Fourth Fourth Fiscal Fiscal Agricultural Productivity Quarter Quarter Year Year 2008 2007 2008 2007 EBIT (For a reconciliation of $205 $48 1,691 $470 EBIT, see note 1.) Unusual Items Affecting EBIT Income (Loss) on $8 $(4) $22 $8 Discontinued Operations Solutia Claim Settlement None None $210 None
The Agricultural Productivity segment consists primarily of crop protection products and the lawn-and-garden herbicide business.
Sales for Monsanto's Agricultural Productivity segment were $1.1 billion for the fourth quarter of fiscal year 2008, or 43 percent higher compared with sales in the same period last year. Results in the quarter reflect improved pricing of branded Roundup herbicides.
Sales for the segment were $5 billion for fiscal year 2008, or 48 percent higher compared with sales in the same period last year. Segment sales benefited from higher sales of Roundup and other glyphosate-based herbicides globally. Improved pricing in all regions contributed to the results.
In conjunction with this announcement, Monsanto will hold a conference call at 8:30 a.m. central time (9:30 a.m. eastern time) today. The call will focus on these results and future expectations. The call may also include a discussion of Monsanto's strategic initiatives, product performance and other matters related to the company's business.
Presentation slides and a simultaneous audio webcast of the conference call may be accessed by visiting the company's web site at http://www.monsanto.com/investor/. Visitors may need to download Windows Media Player™ prior to listening to the webcast. Following the live broadcast, a replay of the webcast will be available on the Monsanto web site for three weeks.
About Monsanto Company
Monsanto Company (NYSE: MON) 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/.
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: DEKALB, Roundup Ready 2 Yield, YieldGard, Deltapine, SmartStax, Bollgard, Bollgard II, DeRuiter Seeds, Roundup Ready and Roundup are registered trademarks owned by Monsanto Company and its wholly owned subsidiaries. All other trademarks are the property of their respective owners.
References to "Roundup herbicides" in this release mean Roundup branded herbicides, excluding lawn-and-garden herbicide products, and references to "Roundup and other glyphosate-based herbicides" exclude all lawn-and-garden herbicides.
Monsanto Company Selected Financial Information (Dollars in millions, except per share amounts) Unaudited Statements of Consolidated Three Three 12 Months 12 Months Operations Months Months Ended Ended Ended Ended Aug. 31, Aug. 31, Aug. 31, Aug. 31, 2008 2007 2008 2007 Net Sales $2,051 $1,518 $11,365 $8,349 Cost of Goods Sold 1,091 875 5,188 4,119 Gross Profit 960 643 6,177 4,230 Operating Expenses: Selling, General and Administrative Expenses 711 586 2,312 1,858 Research and Development Expenses 314 223 980 770 Acquired In-Process Research and Development 161 186 164 193 Total Operating Expenses 1,186 995 3,456 2,821 Income (Loss) From Operations (226) (352) 2,721 1,409 Interest Expense 13 42 110 136 Interest Income (27) (32) (132) (120) Solutia-Related Expenses - (Income) 18 (187) 40 Other Expense - Net 7 15 4 25 Income (Loss) From Continuing Operations Before Income Taxes and Minority Interest (219) (395) 2,926 1,328 Income Tax Provision (Benefit) (47) (115) 899 403 Minority Interest Expense 7 5 20 12 Income (Loss) From Continuing Operations (179) (285) 2,007 913 Discontinued Operations: Income From Operations of Discontinued Businesses 8 46 20 52 Income Tax Provision (Benefit) (1) 29 3 (28) Income on Discontinued Operations 7 75 17 80 Net Income (Loss) $(172) $(210) $2,024 $993 EBIT (See note 1) $(238) $(349) $2,891 $1,375 Basic Earnings (Loss) per Share:(1) Income (Loss) From Continuing Operations $(0.32) $(0.52) $3.66 $1.68 Income on Discontinued Operations 0.01 0.13 0.03 0.15 Net Income (Loss) $(0.31) $(0.39) $3.69 $1.83 Diluted Earnings (Loss) per Share:(1) Income (Loss) From Continuing Operations $(0.32) $(0.52) $3.59 $1.65 Income on Discontinued Operations 0.01 0.13 0.03 0.14 Net Income (Loss) $(0.31) $(0.39) $3.62 $1.79 Weighted Average Shares Outstanding:(1) Basic 549.5 545.1 548.1 544.1 Diluted 549.5 545.1 559.3 555.0 Monsanto Company Selected Financial Information (Dollars in millions) Unaudited Condensed Statements of As of As of Consolidated Financial Position Aug. 31, 2008 Aug. 31, 2007 Assets Current Assets: Cash and Cash Equivalents $1,613 $866 Trade Receivables - Net of Allowances of $218 and $217, respectively 2,067 1,499 Miscellaneous Receivables 758 407 Deferred Tax Assets 338 449 Inventories 2,453 1,719 Assets of Discontinued Operations 153 - Other Current Assets 243 144 Total Current Assets 7,625 5,084 Property, Plant and Equipment - Net 3,323 2,656 Goodwill 3,108 2,625 Other Intangible Assets - Net 1,563 1,415 Noncurrent Deferred Tax Assets 979 730 Long-Term Receivables - Net of Allowances of $168 and $131, respectively 636 79 Noncurrent Assets of Discontinued Operations 236 - Other Assets 523 394 Total Assets $17,993 $12,983 Liabilities and Shareowners' Equity Current Liabilities: Short-Term Debt, Including Current Portion of Long-Term Debt $24 $270 Accounts Payable 1,090 649 Income Taxes Payable 161 150 Accrued Compensation and Benefits 441 349 Accrued Marketing Programs 754 517 Deferred Revenues 867 260 Grower Production Accruals 172 86 Dividends Payable 132 96 Liabilities of Discontinued Operations 26 - Miscellaneous Short-Term Accruals 772 698 Total Current Liabilities 4,439 3,075 Long-Term Debt 1,792 1,150 Postretirement Liabilities 590 542 Noncurrent Deferred Tax Liabilities 212 83 Long-Term Portion of Environmental and Related Litigation Reserve 168 135 Long-Term Deferred Revenue 566 - Noncurrent Liabilities of Discontinued Operations 52 - Other Liabilities 800 495 Shareowners' Equity 9,374 7,503 Total Liabilities and Shareowners' Equity $17,993 $12,983 Debt to Capital Ratio: 16% 16% Monsanto Company Selected Financial Information (Dollars in millions) Unaudited Statements of Consolidated Cash Flows 12 Months 12 Months Ended Ended Aug. 31, 2008 Aug. 31, 2007 Operating Activities: Net Income $2,024 $993 Adjustments to Reconcile Cash Provided by Operating Activities: Items That Did Not Require (Provide) Cash: Depreciation and Amortization Expense 573 527 Bad-Debt Expense 57 70 Receipt of Securities from Solutia (38) - Settlement Stock-Based Compensation Expense 90 73 Excess Tax Benefits from Stock-Based Compensation (198) (83) Deferred Income Taxes 47 (89) Equity Affiliate Expense - Net (2) 34 Acquired In-Process Research and 164 193 Development - (73) Net Gain on Sale of Stoneville and NexGen Businesses Other Items 7 15 Changes in Assets and Liabilities, Net of the Effects of Acquisitions: Trade Receivables (318) (2) Inventories (691) 60 Deferred Revenues 492 129 Accounts Payable and Other Accrued Liabilities 889 147 Pension Contributions (120) (60) Net Investment Hedge Settlements (124) (23) Other Items (53) (57) Net Cash Provided by Operating Activities 2,799 1,854 Cash Flows Provided (Required) by Investing Activities: Purchases of Short-Term Investments (132) (59) Maturities of Short-Term Investments 59 22 Capital Expenditures (918) (509) Acquisitions of Businesses, Net of Cash Acquired (1,007) (1,679) Purchases of Long-Term Equity Securities (78) - Technology and Other Investments 41) (54) Proceeds from Sale of Stoneville and NexGen Businesses - 317 Other Investments and Property Disposal Proceeds 90 51 Net Cash Required by Investing Activities (2,027) (1,911) Cash Flows Provided (Required) by Financing Activities: Net Change in Financing With Less Than 90-Day Maturities 92 (5) Short-Term Debt Proceeds - 8 Short-Term Debt Reductions (10) (8) Long-Term Debt Proceeds 546 8 Long-Term Debt Reductions (254) (281) Payments on Other Financing (3) (16) Debt Issuance Costs (5) - Treasury Stock Purchases (361) (197) Stock Option Exercises 114 83 Excess Tax Benefits From Stock-Based Compensation 198 83 Dividend Payments (419) (258) Net Cash Required by Financing Activities (102) (583) Effect of Exchange Rate Changes on Cash and Cash Equivalents 77 46 Net Increase (Decrease) in Cash and Cash Equivalents 747 (594) Cash and Cash Equivalents at Beginning of Period 866 1,460 Cash and Cash Equivalents at End of Period $1,613 $866 Monsanto Company Selected Financial Information (Dollars in millions) Unaudited 1. EBIT, Ongoing EPS and Free Cash Flow: The presentations of EBIT, 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 EBIT, ongoing EPS and free cash flow to the respective most directly comparable financial measure calculated in accordance with GAAP. Reconciliation of EBIT to Net Income (Loss): EBIT is defined as earnings (loss) before interest and taxes. Earnings (loss) is intended to mean net income (loss) as presented in the Statements of Consolidated Operations under GAAP. The following table reconciles EBIT to the most directly comparable financial measure, which is net income (loss). Three Months 12 Months Ended Ended Aug. 31, Aug. 31, 2008 2007 2008 2007 EBIT - Seeds and Genomics Segment $(443) $(397) $1,200 $905 EBIT - Agricultural Productivity Segment 205 48 1,691 470 EBIT- Total (238) (349) 2,891 1,375 Interest Expense (Income) - Net (14) 10 (22) 16 Income Tax Provision (Benefit)(A) (52) (149) 889 366 Net Income (Loss) $(172) $(210) $2,024 $993 (A) Includes the income tax provision (benefit) from continuing operations, the income tax benefit on minority interest, the income tax provision (benefit) on discontinued operations. Reconciliation of EPS to Ongoing EPS: Ongoing EPS is calculated excluding certain after-tax items which Monsanto does not consider part of ongoing operations. The reconciliation of EPS to ongoing EPS for the fourth quarter and year ended Aug. 31, 2008 and 2007 is included on page 1 of this release. 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 2009 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 12 Months Ended 2009 Aug. 31, Guidance 2008 2007 Net Cash Provided by Operating Activities $3,000 $2,799 $1,854 Net Cash Required by Investing Activities (1,200) (2,027) (1,911) Free Cash Flow $1,800 $772 $(57) Net Cash Required by Financing Activities N/A (102) (583) Effect of Exchange Rate Changes on Cash and Cash N/A 77 46 Equivalents Net Increase (Decrease) in Cash and Cash Equivalents N/A $747 $(594) Cash and Cash Equivalents at Beginning of Period N/A $866 $1,460 Cash and Cash Equivalents at End of Period N/A $1,613 $866
SOURCE: Monsanto Company
CONTACT: Media, Lee Quarles, +1-314-694-2330, or Analysts, Scarlett Lee
Foster, +1-314-694-8148, both of Monsanto Company
Web site: http://www.monsanto.com/
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