Monsanto Company (NYSE: MON) today announced that it is increasing estimates for the company’s fiscal year 2004 free cash flow guidance, reflecting working capital improvements as the company has been implementing changes to improve its return on capital (ROC). New goals for ROC will be announced when the company reports fiscal-year earnings on Oct. 6.

The company now expects that free cash flow will be in excess of $900 million for the 2004 fiscal year, compared with previous guidance estimating free cash flow at the $500 million level. The company expects net cash provided by operations to be in the range of $1.15 billion and net cash required by investing activities to be in the range of $250 million.

The company also reaffirmed fiscal-year earnings-per-share (EPS) guidance of $1.55 to $1.60 on an ongoing business basis, excluding the effect of net restructuring charges, discontinued operations and related restructuring actions, and the write-off of goodwill associated with the global wheat business (estimated at $(0.36), $(0.02) and $(0.26), respectively). On a reported basis and including the estimated restructuring charges, discontinued operations and goodwill write-off, EPS guidance is in the range of $0.91 to $0.96 for the year, which is higher than the company’s previous guidance as result of lower than anticipated restructuring charges.

“Our strong cash generation is a testament to both the performance of our business and the value of our traits and seeds strategy,” said Hugh Grant, Monsanto chairman, president and chief executive officer. “With this free cash flow growth, we’re in the position to use the cash generated strategically, with a priority on returning value to our shareowners and creating additional growth.”

Monsanto also announced it had acquired the North American canola seed assets of Advanta Seeds from Advanta B.V., a company recently purchased by Fox Paine Capital Fund II International, L.P. The transaction closed yesterday.

The addition of Advanta’s canola seed business is intended to strengthen the company’s trait and seed platform and to strengthen Monsanto’s position in oilseeds, one of its three core crop areas. The terms of the purchase agreement were not disclosed.

Monsanto also remains committed to its $500 million, three-year share repurchase plan. Through Aug. 31, 2004, Monsanto had repurchased $266 million of its common shares since the end of July 2003, when the repurchase program was authorized.

Monsanto will report its complete fourth-quarter and fiscal-year 2004 earnings results Wednesday, Oct. 6.

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.