Monsanto increases gross profit target for 2012 to $9.5 billion to $9.75 billion ST. LOUIS, Oct. 8
ST. LOUIS, Oct. 8 /PRNewswire-FirstCall/ --
Fourth Fourth Fiscal Fiscal
($ 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 110 331,174 901
Cotton seed and traits 89 59 450 319
Vegetable seeds 223 168 744 612
All other crops seeds and traits166 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 QuarterYear 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."
Operations Update
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(R) 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.
Cash Flow
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.
Outlook
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 2009ยท
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 YearYear
20082007 2008 2007 2008200720082007
Corn seed
and traits $353$364 $3,542 $2,807 $151$178 $2,174 $1,721
Soybean seed
and traits 110 33 1,174901 76 7 725 588
Cotton seed
and traits 89 59 450319 61 45 313 267
Vegetable seeds 223 168 744612124 57 394 267
All other crops
seeds and
traits 166 118 459325 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 GenomicsQuarterQuarter Year Year
2008 20072008 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$50None $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 SalesGross Profit
Agricultural Fourth Fourth Fiscal Fiscal Fourth Fourth Fiscal Fiscal
Productivity Quarter Quarter Year Year Quarter Quarter YearYear
20082007 2008 2007 2008200720082007
Roundup and
other
glyphosate-
based
herbicides $936$632 $4,094 $2,568 $417$219 $1,976$854
All other
agricultural
productivity
products174 144 902817 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 ProductivityQuarter Quarter Year Year
2008 2007 2008 2007
EBIT (For a reconciliation of $205$481,691 $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.
Webcast Information
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(TM) 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 ConsolidatedThree Three 12 Months 12 Months
Operations MonthsMonthsEnded Ended
Ended EndedAug. 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 Expenses711 586 2,312 1,858
Research and Development
Expenses 314 223 980770
Acquired In-Process Research
and Development161 186 164193
Total Operating Expenses1,186 995 3,456 2,821
Income (Loss) From Operations(226) (352)2,721 1,409
Interest Expense 1342 110136
Interest Income (27) (32) (132) (120)
Solutia-Related Expenses-
(Income)18 (187)40
Other Expense - Net 715 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) 899403
Minority Interest Expense 7 520 12
Income (Loss) From Continuing
Operations (179) (285)2,007913
Discontinued Operations:
Income From Operations of
Discontinued Businesses 84620 52
Income Tax Provision
(Benefit) (1) 29 3(28)
Income on Discontinued
Operations 77517 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)
Basic549.5 545.1 548.1 544.1
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, respectively2,067 1,499
Miscellaneous Receivables 758407
Deferred Tax Assets 338449
Inventories 2,453 1,719
Assets of Discontinued Operations 153 -
Other Current Assets 243144
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 979730
Long-Term Receivables - Net of Allowances of
$168 and $131, respectively636 79
Noncurrent Assets of Discontinued Operations236 -
Other Assets523394
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 Payable1,090649
Income Taxes Payable 161150
Accrued Compensation and Benefits 441349
Accrued Marketing Programs754517
Deferred Revenues 867260
Grower Production Accruals172 86
Dividends Payable 132 96
Liabilities of Discontinued Operations 26 -
Miscellaneous Short-Term Accruals 772698
Total Current Liabilities 4,439 3,075
Long-Term Debt1,792 1,150
Postretirement Liabilities 590542
Noncurrent Deferred Tax Liabilities 212 83
Long-Term Portion of Environmental and Related
Litigation Reserve 168135
Long-Term Deferred Revenue 566 -
Noncurrent Liabilities of Discontinued
Operations 52 -
Other Liabilities 800495
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 Flows12 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 Expense573 527
Bad-Debt Expense 5770
Receipt of Securities from Solutia (38)-
Settlement
Stock-Based Compensation Expense 9073
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 Items715
Changes in Assets and Liabilities, Net of the
Effects of Acquisitions:
Trade Receivables (318) (2)
Inventories (691) 60
Deferred Revenues492 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 Investments5922
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 Investments41) (54)
Proceeds from Sale of Stoneville and NexGen
Businesses - 317
Other Investments and Property Disposal Proceeds9051
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 Proceeds546 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 11483
Excess Tax Benefits From Stock-Based
Compensation 19883
Dividend Payments (419) (258)
Net Cash Required by Financing Activities (102) (583)
Effect of Exchange Rate Changes on Cash and Cash
Equivalents 7746
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 Months12 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
2009Aug. 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
EquivalentsN/A $747$(594)
Cash and Cash Equivalents at Beginning of
PeriodN/A $866 $1,460
Cash and Cash Equivalents at End of
PeriodN/A $1,613 $866
SOURCE Monsanto Company
