Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MONSANTO CO /NEW/ | form8k.htm |
™ Monsanto
Company
800 North Lindbergh
Blvd
St. Louis, Missouri
63167
|
Release
|
Immediately
|
|
Contact
|
Media: Kelli
Powers (314-694-4003)
|
|
Analysts: Bryan
Hurley (314-694-8148)
|
MONSANTO
DELIVERS ON Q1 GUIDANCE, CONFIRMS FULL-YEAR EARNINGS PER
SHARE
AND CASH FLOW TARGETS
Company
Advances 11 Projects With Record-Breaking R&D Pipeline Update
ST. LOUIS, Jan. 6, 2010 –
Monsanto Company (NYSE: MON) has delivered on its financial targets for the
first quarter of 2010, which ended Nov. 30, 2009, and recommitted to its
full-year guidance. With its quarterly earnings results today the
company also announced its annual research and development pipeline update,
showcasing a record-breaking 11 phase advancements.
Early
indicators of the seeds and traits business show the company on track to meet
its 2010 financial commitments and with its operational plan through 2011 and
2012.
|
($
in millions)
|
First
Quarter
2010
|
First
Quarter
2009
|
||||||
|
Net
Sales By Segment
|
||||||||
|
Corn
seed and traits
|
$ | 569 | $ | 628 | ||||
|
Soybean
seed and traits
|
201 | 212 | ||||||
|
Vegetable
seeds
|
173 | 157 | ||||||
|
Cotton
seed and traits
|
59 | 47 | ||||||
|
All
other crops seeds and traits
|
29 | 55 | ||||||
|
TOTAL
Seeds and Genomics
|
$ | 1,031 | $ | 1,099 | ||||
|
Roundup
and other glyphosate-based herbicides
|
$ | 509 | $ | 1,359 | ||||
|
All
other agricultural productivity products
|
157 | 191 | ||||||
|
TOTAL
Agricultural Productivity
|
$ | 666 | $ | 1,550 | ||||
|
TOTAL
Net Sales
|
$ | 1,697 | $ | 2,649 | ||||
|
Gross
Profit
|
$ | 739 | $ | 1,550 | ||||
|
Operating
Expenses
|
$ | 777 | $ | 802 | ||||
|
Interest
Expense (Income) – Net
|
$ | 28 | $ | (2 | ) | |||
|
Other
(Income) Expense – Net
|
$ | (12 | ) | $ | 26 | |||
|
Net
(Loss) Income Attributable to Monsanto Company
|
$ | (19 | ) | $ | 556 | |||
|
Diluted (Loss) Earnings per
Share (See note 1.)
|
$ | (0.03 | ) | $ | 1.00 | |||
|
Items
Affecting Comparability – EPS Impact
|
||||||||
|
Restructuring
charges
|
0.02 | — | ||||||
|
Income
on discontinued operations
|
(0.01 | ) | (0.02 | ) | ||||
|
Diluted (Loss) Earnings per
Share from Ongoing Business (For
the
definition of ongoing EPS, see note 1.)
|
$ | (0.02 | ) | $ | 0.98 | |||
|
Effective
Tax Rate
|
56 | % | 24 | % | ||||
-more-
|
First Quarter
2010
|
First Quarter
2009
|
|
|
Comparison
as a Percent of Net Sales:
|
||
|
Gross
profit
|
44%
|
59%
|
|
Selling,
general and administrative expenses (SG&A)
|
29%
|
21%
|
|
Research
and development expenses (excluding
acquired
in-process R&D)
|
16%
|
10%
|
|
(Loss)
income from continuing operations before income taxes
|
(3)%
|
27%
|
|
Net
(loss) income
|
(1)%
|
21%
|
“Our
first quarter is a small but important quarter as it sets the foundation for the
year ahead, which we see as a critical year in propelling us to reach our 2011
and 2012 commitments,” said Hugh Grant, chairman, president and chief executive
officer for Monsanto. “We’ve delivered on our targets for the quarter
and this year we are confident that we will achieve the milestones necessary to
reach our financial commitment to our shareowners. Today, we also
take a closer look at our R&D pipeline and bring 11 new technologies that
will deliver real value to farmers closer to the field. With our
selling season well underway and the demand we see for GenuityTM
SmartStaxTM corn
and GenuityTM
Roundup Ready 2 Yield®
soybeans, we believe it will only get better from here. These winning
products are the platform for many of the technologies in early phases in our
pipeline, and we’re closer to demonstrating what those new technologies can do
on the farm.”
Results of
Operations
Net sales
decreased $952 million, or 36 percent, in the three-month comparison primarily
as a result of decreased sales of glyphosate-based herbicides, primarily in
Brazil and Europe. Gross profit percentage for the total company
decreased 15 percentage points to 44 percent in the first quarter, largely
driven by pricing adjustments for Roundup and other glyphosate-based
herbicides.
Operating
expenses decreased 3 percent, or $25 million, in the first quarter 2010 compared
to the prior year. In the three-month comparison, selling, general and
administrative (SG&A) expenses decreased 10 percent primarily because of
lower spending for marketing, administrative functions and
incentives. R&D expenses increased 6 percent related to the
increase in the company’s investment in its product pipeline as it manages more
projects in advanced pipeline phases. As a percent of net sales,
SG&A expenses were 29 percent and R&D expenses increased to 16
percent.
Net
income in the first quarter was a loss of $0.03 per share, compared with income
of $1.00 per share in first quarter 2009.
Cash
Flow
For the
first quarter of fiscal 2010, net cash required by operating activities was $1.4
billion, compared to a source of $114 million in the first quarter last
year. Net cash required by investing activities for the first quarter
of fiscal 2010 was $197 million, compared with a source of $10 million for the
year-ago quarter. Net cash provided by financing activities for the
first quarter of 2010 was $113 million, compared to net cash required of $258
million for the prior year’s first quarter.
Free cash
flow was a use of $1.6 billion for the first quarter of fiscal 2010, compared to
a source of $124 million for the first quarter in fiscal
2009. (For a reconciliation of free cash flow, see note
1.) The reset of the Roundup business accounted for roughly 30
percent of this shift, and some working capital changes that altered the timing
of cash flow in the quarter accounted for approximately half. The
working capital changes are primarily driven by a timing adjustment for payments
from seed licenses, which traditionally had been collected in the first quarter
and are now collected in the fourth quarter. The remaining balance in
fiscal 2009 came from the proceeds from the divestiture of the dairy business,
which was $300 million.
Outlook
The
company affirmed its previously announced cash flow guidance. The
company expects 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
charge 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.)
The
company confirmed full-year 2010 ongoing earnings per share (EPS) guidance is in
the range of $3.10 to $3.30. Full-year 2010 EPS guidance on an
as-reported basis is in the range of $2.85 to $3.11. (For a
reconciliation of EPS, see note 1.)
Seeds and Genomics Segment
Detail
|
($
in millions)
|
Net
Sales
|
Gross
Profit
|
||
|
Seeds and Genomics
|
First
Quarter
2010
|
First
Quarter
2009
|
First
Quarter
2010
|
First
Quarter
2009
|
|
Corn
seed and traits
|
$569
|
$628
|
$304
|
$403
|
|
Soybean
seed and traits
|
201
|
212
|
139
|
145
|
|
Vegetable
seeds
|
173
|
157
|
112
|
80
|
|
Cotton
seed and traits
|
59
|
47
|
33
|
26
|
|
All
other crops seeds and traits
|
29
|
55
|
9
|
24
|
|
TOTAL
Seeds and Genomics
|
$1,031
|
$1,099
|
$597
|
$678
|
|
($
in millions)
|
Earnings
(Loss) Before
Interest
& Taxes (EBIT)
|
|
|
Seeds and Genomics
|
First
Quarter
2010
|
First
Quarter
2009
|
|
EBIT (For a
reconciliation of EBIT, see note 1.)
|
$(57)
|
$65
|
|
Unusual
Items Affecting EBIT: Restructuring
|
$(3)
|
None
|
The Seeds and Genomics segment
consists of the company’s global seeds and related traits business, and
biotechnology platforms.
Sales for
Monsanto’s Seeds and Genomics segment in the first quarter of fiscal 2010
decreased 6 percent or $68 million compared to the same period last
year.
Corn seed
and traits net sales decreased 9 percent or $59 million due in large part to a
decrease in planted acres in Brazil and Argentina as a result of drought,
governmental policies and commodity prices. With the
second season still ahead in Brazil, there may be some rebound in total acres,
but all-in planted acres are expected to be down for the year in both Brazil and
Argentina.
This year
marks the launch of Genuity SmartStax corn, which is expected to be on more than
4 million acres. Given the early orders, the early-adopter uptake for
Genuity SmartStax has been good and the company is on pace to meet the more than
4 million-acre target.
Overall,
soybean gross profit is down 4 percent compared with last year, with relatively
flat margins, due to a timing effect. Delays in harvesting last
year’s soybean crop have put the company’s seed shipments slightly behind, with
this volume expected to shift into the second quarter. The company
previously increased its acre targets for Genuity Roundup Ready 2 Yield to 8
million to 10 million acres, and sales to date are on pace to meet that
target.
The
vegetable business performed well, with sales growing $16 million or 10 percent,
driven in part by better product availability.
Agricultural Productivity
Segment Detail
|
($
in millions)
|
Net
Sales
|
Gross
Profit
|
||
|
Agricultural Productivity
|
First
Quarter
2010
|
First
Quarter
2009
|
First
Quarter
2010
|
First
Quarter
2009
|
|
Roundup
and other glyphosate-
based
herbicides
|
$509
|
$1,359
|
$87
|
$804
|
|
All
other agricultural
productivity
products
|
157
|
191
|
55
|
68
|
|
TOTAL
Agricultural Productivity
|
$666
|
$1,550
|
$142
|
$872
|
|
($
in millions)
|
Earnings
Before
Interest
& Taxes (EBIT)
|
|
|
Agricultural Productivity
|
First
Quarter
2010
|
First
Quarter
2009
|
|
EBIT (For a
reconciliation of EBIT, see note 1.)
|
$34
|
$673
|
|
Unusual
Items Affecting EBIT:
EBIT
from Discontinued Operations
Restructuring
|
5
$(11)
|
$18
None
|
The Agricultural Productivity
segment consists of the crop protection products and lawn-and-garden
herbicide products.
Sales in
the first quarter of fiscal 2010 for Monsanto’s Agricultural Productivity
segment declined 57 percent or $884 million compared with the same period last
year. Addressing the global supply-demand imbalance, the company
continues to execute on its plan by resetting branded prices to bring premiums
more in line with historical norms, increasing overall volumes and optimizing
its low-cost production advantage.
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, future expectations and an update of projects within the
company’s R&D pipeline, including the record-breaking 11 phase
advancements. The call also may 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 www.monsanto.com and
clicking on “Investor Information.” 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 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 Form 10-K Report to the SEC. 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: Genuity, YieldGard, Roundup, Roundup Ready 2 Yield and SmartStax are
trademarks of Monsanto Company and its wholly-owned subsidiaries.
References
to Roundup herbicides in this release mean Roundup-branded herbicides, excluding
lawn-and-garden herbicide products.
-oOo-
Monsanto
Company
Selected
Financial Information
(Dollars
in millions, except per share amounts)
Unaudited
|
Statements
of Consolidated Operations
|
Three
Months Ended
Nov.
30,
|
|||||||
|
2009
|
2008
|
|||||||
|
Net
Sales
|
$ | 1,697 | $ | 2,649 | ||||
|
Cost
of Goods Sold
|
958 | 1,099 | ||||||
|
Gross
Profit
|
739 | 1,550 | ||||||
|
Operating
Expenses:
|
||||||||
|
Selling,
General and Administrative Expenses
|
496 | 550 | ||||||
|
Research
and Development Expenses
|
267 | 252 | ||||||
|
Restructuring
Charges, Net
|
14 | — | ||||||
|
Total
Operating Expenses
|
777 | 802 | ||||||
|
(Loss)
Income From Operations
|
(38 | ) | 748 | |||||
|
Interest
Expense
|
39 | 23 | ||||||
|
Interest
Income
|
(11 | ) | (25 | ) | ||||
|
Other
(Income) Expense, Net
|
(12 | ) | 26 | |||||
|
(Loss)
Income from Continuing Operations Before Income Taxes
|
(54 | ) | 724 | |||||
|
Income
Tax (Benefit) Provision
|
(30 | ) | 176 | |||||
|
(Loss)
Income from Continuing Operations Including Portion
Attributable
to
Noncontrolling Interest
|
$ | (24 | ) | $ | 548 | |||
|
Discontinued
Operations:
|
||||||||
|
Income
from Operations of Discontinued Businesses
|
5 | 18 | ||||||
|
Income
Tax Provision
|
— | 8 | ||||||
|
Income
on Discontinued Operations
|
5 | 10 | ||||||
|
Net
(Loss) Income
|
$ | (19 | ) | $ | 558 | |||
|
Less:
Net Income Attributable to Noncontrolling Interest
|
— | 2 | ||||||
|
Net
(Loss) Income Attributable to Monsanto Company
|
$ | (19 | ) | $ | 556 | |||
|
EBIT
(see note 1)
|
$ | (23 | ) | $ | 738 | |||
|
Basic
Earnings (Loss) per Share:
|
||||||||
|
(Loss)
Income from Continuing Operations
|
$ | (0.04 | ) | $ | 0.99 | |||
|
Income
on Discontinued Operations
|
0.01 | 0.02 | ||||||
|
Net
(Loss) Income
|
$ | (0.03 | ) | $ | 1.01 | |||
|
Diluted
Earnings (Loss) per Share:
|
||||||||
|
(Loss)
Income from Continuing Operations
|
$ | (0.04 | ) | $ | 0.98 | |||
|
Income
on Discontinued Operations
|
0.01 | 0.02 | ||||||
|
Net
(Loss) Income
|
$ | (0.03 | ) | $ | 1.00 | |||
|
Weighted
Average Shares Outstanding:
|
||||||||
|
Basic
|
545.6 | 548.8 | ||||||
|
Diluted
|
545.6 | 557.6 | ||||||
Monsanto
Company
Selected
Financial Information
(Dollars
in millions)
Unaudited
|
Condensed
Statements of Consolidated Financial Position
|
As
of
Nov.
30, 2009
|
As
of
Aug.
31, 2009
|
||||||
|
Assets
|
||||||||
|
Current
Assets:
|
||||||||
|
Cash
and Cash Equivalents
|
$ | 471 | $ | 1,956 | ||||
|
Trade
Receivables, Net
|
2,012 | 1,556 | ||||||
|
Miscellaneous
Receivables
|
716 | 654 | ||||||
|
Deferred
Tax Assets
|
574 | 662 | ||||||
|
Inventory,
Net
|
3,560 | 2,934 | ||||||
|
Other
Current Assets
|
98 | 121 | ||||||
|
Total
Current Assets
|
7,431 | 7,883 | ||||||
|
Property,
Plant and Equipment, Net
|
3,720 | 3,609 | ||||||
|
Goodwill
|
3,272 | 3,218 | ||||||
|
Other
Intangible Assets, Net
|
1,370 | 1,371 | ||||||
|
Noncurrent
Deferred Tax Assets
|
804 | 743 | ||||||
|
Long-Term
Receivables, Net
|
488 | 557 | ||||||
|
Other
Assets
|
521 | 496 | ||||||
|
Total
Assets
|
$ | 17,606 | $ | 17,877 | ||||
|
Liabilities
and Shareowners’ Equity
|
||||||||
|
Current
Liabilities:
|
||||||||
|
Short-Term
Debt, Including Current Portion of Long-Term Debt
|
$ | 281 | $ | 79 | ||||
|
Accounts
Payable
|
765 | 676 | ||||||
|
Income
Taxes Payable
|
52 | 79 | ||||||
|
Accrued
Compensation and Benefits
|
223 | 263 | ||||||
|
Accrued
Marketing Programs
|
367 | 934 | ||||||
|
Deferred
Revenues
|
368 | 219 | ||||||
|
Grower
Production Accruals
|
386 | 139 | ||||||
|
Dividends
Payable
|
— | 145 | ||||||
|
Customer
Payable
|
— | 307 | ||||||
|
Restructuring
Reserves
|
221 | 286 | ||||||
|
Miscellaneous
Short-Term Accruals
|
691 | 629 | ||||||
|
Total
Current Liabilities
|
3,354 | 3,756 | ||||||
|
Long-Term
Debt
|
1,724 | 1,724 | ||||||
|
Postretirement
Liabilities
|
729 | 793 | ||||||
|
Long-Term
Deferred Revenue
|
466 | 488 | ||||||
|
Noncurrent
Deferred Tax Liabilities
|
159 | 153 | ||||||
|
Long-Term
Portion of Environmental and Litigation Reserves
|
203 | 197 | ||||||
|
Other
Liabilities
|
628 | 641 | ||||||
|
Monsanto
Shareowners’ Equity
|
10,286 | 10,056 | ||||||
|
Noncontrolling
Interest
|
57 | 69 | ||||||
|
Total
Shareowners’ Equity
|
10,343 | 10,125 | ||||||
|
Total
Liabilities and Shareowners’ Equity
|
$ | 17,606 | $ | 17,877 | ||||
|
Debt
to Capital Ratio:
|
16 | % | 15 | % | ||||
Monsanto
Company
Selected
Financial Information
(Dollars
in millions)
Unaudited
| Statements of Consolidated Cash Flows |
Three
Months Ended
Nov.
30,
|
|||||||
|
2009
|
2008
|
|||||||
|
Operating
Activities:
|
||||||||
|
Net
(Loss) Income
|
$ | (19 | ) | $ | 558 | |||
|
Adjustments
to Reconcile Cash Provided by Operating Activities:
|
||||||||
|
Items
That Did Not Require (Provide) Cash:
|
||||||||
|
Depreciation
and Amortization
|
144 | 135 | ||||||
|
Bad-Debt
Expense
|
14 | 36 | ||||||
|
Stock-Based
Compensation Expense
|
24 | 26 | ||||||
|
Excess
Tax Benefits from Stock-Based Compensation
|
(13 | ) | (5 | ) | ||||
|
Deferred
Income Taxes
|
(58 | ) | 52 | |||||
|
Restructuring
Charges, Net
|
14 | — | ||||||
|
Equity
Affiliate Income, Net
|
(14 | ) | (6 | ) | ||||
|
Net
Gain on Sales of a Business or Other Assets
|
(1 | ) | (6 | ) | ||||
|
Other
Items
|
2 | 5 | ||||||
|
Changes
in Assets and Liabilities That Provided (Required) Cash,
Net
of Acquisitions:
|
||||||||
|
Trade
Receivables, Net
|
(343 | ) | 165 | |||||
|
Inventory,
Net
|
(539 | ) | (832 | ) | ||||
|
Deferred
Revenues
|
126 | (238 | ) | |||||
|
Accounts
Payable and Other Accrued Liabilities
|
(573 | ) | 195 | |||||
|
Restructuring
Cash Payments
|
(79 | ) | — | |||||
|
Pension
Contributions
|
(78 | ) | (15 | ) | ||||
|
Net
Investment Hedge Settlement
|
(4 | ) | 18 | |||||
|
Other
Items
|
(17 | ) | 26 | |||||
|
Net
Cash (Required) Provided by Operating Activities
|
(1,414 | ) | 114 | |||||
|
Cash
Flows (Required) Provided by Investing Activities:
|
||||||||
|
Capital
Expenditures
|
(192 | ) | (264 | ) | ||||
|
Acquisitions
of Businesses, Net of Cash Acquired
|
(20 | ) | (2 | ) | ||||
|
Purchases
of Long-Term Equity Securities
|
(2 | ) | (7 | ) | ||||
|
Technology
and Other Investments
|
(9 | ) | (18 | ) | ||||
|
Proceeds
From Divestiture of a Business
|
— | 300 | ||||||
|
Other
Investments and Property Disposal Proceeds
|
26 | 1 | ||||||
|
Net
Cash (Required) Provided by Investing Activities
|
(197 | ) | 10 | |||||
|
Cash
Flows Provided (Required) by Financing Activities:
|
||||||||
|
Net
Change in Financing With Less Than 90-Day Maturities
|
299 | (90 | ) | |||||
|
Short-Term
Debt Proceeds
|
25 | 31 | ||||||
|
Short-Term
Debt Reductions
|
(29 | ) | — | |||||
|
Long-Term
Debt Reductions
|
(1 | ) | (4 | ) | ||||
|
Payments
on Other Financing
|
(1 | ) | — | |||||
|
Treasury
Stock Purchases
|
(64 | ) | (75 | ) | ||||
|
Stock
Option Exercises
|
16 | 7 | ||||||
|
Excess
Tax Benefits from Stock-Based Compensation
|
13 | 5 | ||||||
|
Dividend
Payments
|
(145 | ) | (132 | ) | ||||
|
Net
Cash Provided (Required) by Financing Activities
|
113 | (258 | ) | |||||
|
Effect
of Exchange Rate Changes on Cash and Cash Equivalents
|
13 | (137 | ) | |||||
|
Net
Decrease in Cash and Cash Equivalents
|
(1,485 | ) | (271 | ) | ||||
|
Cash
and Cash Equivalents at Beginning of Period
|
1,956 | 1,613 | ||||||
|
Cash
and Cash Equivalents at End of Period
|
$ | 471 | $ | 1,342 | ||||
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 Ended
Nov.
30,
|
||||||||
|
2009
|
2008
|
|||||||
|
EBIT
– Seeds and Genomics Segment
|
$ | (57 | ) | $ | 65 | |||
|
EBIT
– Agricultural Productivity Segment
|
34 | 673 | ||||||
|
EBIT–
Total
|
(23 | ) | 738 | |||||
|
Interest
Expense (Income), Net
|
28 | (2 | ) | |||||
|
Income
Tax (Benefit) Provision(A)
|
(32 | ) | 184 | |||||
|
Net
(Loss) Income Attributable to Monsanto Company
|
$ | (19 | ) | $ | 556 | |||
|
(A)
|
Includes
the income tax benefit from continuing operations, the income tax
provision (benefit) on noncontrolling interest, and the income tax
provision 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.
|
|
Fiscal
Year
2010
Guidance
|
Three
months
ended
Nov.
30, 2009
|
|||||||
|
Diluted
(Loss) Earnings per Share
|
$ | 2.85-$3.11 | $ | (0.03 | ) | |||
|
Restructuring
Charges
|
$ | 0.19-$0.25 | $ | 0.02 | ||||
|
Income
on Discontinued Operations
|
— | $ | (0.01 | ) | ||||
|
Diluted
(Loss) Earnings per Share from Ongoing
Business
|
$ | 3.10-$3.30 | $ | (0.02 | ) | |||
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 target, 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
|
Three
Months Ended
Nov.
30,
|
||||||||||||
| 2009 2008 | |||||||||||||
|
Net
Cash (Required) Provided by Operating Activities
|
$ | 2,000-2,200 | $ | (1,414 | ) | $ | 114 | ||||||
|
Net
Cash (Required) Provided by Investing Activities
|
(1,100)-(1,200 | ) | (197 | ) | 10 | ||||||||
|
Free
Cash Flow
|
$ | 900-1,000 | (1,611 | ) | 124 | ||||||||
|
Net
Cash Provided (Required) by Financing Activities
|
N/A | 113 | (258 | ) | |||||||||
|
Effect
of Exchange Rate Changes on Cash and Cash
Equivalents
|
N/A | 13 | (137 | ) | |||||||||
|
Net
Decrease in Cash and Cash Equivalents
|
N/A | (1,485 | ) | (271 | ) | ||||||||
|
Cash
and Cash Equivalents at Beginning of Period
|
N/A | 1,956 | 1,613 | ||||||||||
|
Cash
and Cash Equivalents at End of Period
|
N/A | $ | 471 | $ | 1,342 | ||||||||