New York, New York
April 2, 2003
Monsanto Company (NYSE:
MON) announced today that it is increasing its first-quarter
earnings guidance. The company said that 15 percent to 20
percent of its full-year earnings per share (EPS) would occur in
the first quarter. This percent was revised upward from the
company's earlier
estimate for the first quarter of 10 percent of annual EPS.
The company also reconfirmed its
full-year 2003 EPS guidance in the range of $1.20 to $1.40, and
reaffirmed that 85 percent to 90 percent of the company's
full-year guidance will be made in the
first-half of the year. This guidance excludes the aftertax
cumulative effect of implementing the new
accounting standard (SFAS No. 143, Accounting for Asset
Retirement Obligations) of approximately 5 cents per share
recorded in the first quarter of 2003.
Monsanto Vice President of U.S. Markets Kerry Preete made the
announcement today during his
remarks at the 2003 Deutsche Bank Basic Industries Conference in
New York. Preete noted that Monsanto increased its projected
first-quarter earnings because of lower spending and better
results in Brazil. The company had better-than-expected use of
Roundup herbicide at the end of the major growing season in
Brazil, and higher sales of corn seed for the secondary planting
season in Brazil.
In his remarks, Preete also noted that the company's U.S.
business is leading Monsanto's transformation from a company
based on a strong chemistry portfolio to a company based on
seeds and biotechnology. He added that the most significant
near- and mid-term growth opportunities will come from the
company's corn seed and trait portfolio.
Monsanto's corn trait business is expected to grow as new traits
are introduced and existing traits are planted on more acres,
Preete noted. The company estimates that its Roundup Ready corn
trait has the potential to be planted on approximately 20
million acres in the United States by the end of 2005. Its most
recently approved product, YieldGard Rootworm, will offer
growers a new tool against the "billion dollar" corn rootworm
pest and will ultimately have a target market of 15 million
acres in the United States. Preete indicated that the best
margin opportunities reside in Monsanto's ability to continue to
rapidly incorporate stacked traits in one seed.
Monsanto Company (NYSE: MON -
News) is a leading global provider of technology-based solutions
and agricultural products that improve farm productivity and
food quality.
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