Financial Summary
($ in millions, except per share) |
Second Quarter 2005 |
Second Quarter 2004 |
%
Change |
Six Months 2005 |
Six Months 2004 |
% Change |
Net Sales |
$1,909 |
$1,498 |
27% |
$2,985 |
$2,521 |
18% |
Net Income
|
$373 |
$154 |
142% |
$333 |
$57 |
484% |
Diluted Earnings per Share |
$1.37 |
$0.57 |
140% |
$1.23 |
$0.21 |
486% |
· Second-quarter
sales increased 27 percent, primarily because of higher corn
and soybean trait revenues in the
United
States, increased corn seed sales in the United States and
the Europe-Africa region, and higher revenues for Roundup
and other glyphosate-based herbicides in all major world
areas. Similarly, sales for the first half of fiscal year
2005 increased 18 percent, benefiting from strong trait
revenues, seed sales, and overall Roundup and other
glyphosate-based herbicide revenues.
· Reported
net income for the quarter was $373 million, which includes
after-tax restructuring charges of $6 million and income on
discontinued operations of $2 million associated with the
planned sale of the environmental technologies businesses.
For the first half of 2005, reported net income was $333
million, including a pre-tax charge of $284 million ($181
million aftertax) to establish a reserve associated with the
Solutia Inc. bankruptcy proceedings, a tax benefit of $106
million ($86 million in discontinued operations and $20
million in continuing operations) as a result of the loss
incurred on the European wheat and barley business, $7
million in after-tax restructuring charges, and income on
discontinued operations of $2 million.
Comment
from Monsanto Chairman, President and Chief Executive
Officer Hugh Grant:
“The second quarter is the most important
single quarter in our fiscal year. We believe the strong
results this quarter, and so far this year, emphasize both
the value of our leadership position in the seeds and traits
market, and the continued opportunity we see as the momentum
in our seeds and traits business helps propel our overall
business growth.”
Second-Quarter and First-Half 2005 Performance Summary:
Net sales
increased 27 percent to $1.9 billion in the second quarter
primarily because of higher corn and soybean trait revenues
in the United States, increased corn seed sales in the
United States and the Europe-Africa region, and higher
revenues for Roundup and other glyphosate-based herbicides
in all major world areas. For the quarter, sales in the
Seeds and Genomics segment increased by 35 percent on the
strength of increased seed and trait sales. There was also
a 17 percent improvement in sales in the Agricultural
Productivity segment, as sales of branded Roundup herbicides
and other glyphosate-based herbicides increased.
For the first half of 2005, net sales
approached $3 billion, an 18 percent improvement compared
with net sales in the same period last year. The drivers
for the first-half sales included increases in U.S. corn and
soybean trait revenues, and increased corn seed sales in the
United States and the Europe-Africa region. Additionally,
sales of Roundup and other glyphosate-based herbicides
outside the United States were higher for the first half of
2005, particularly in Brazil and Europe.
Net income and earnings per share:
Monsanto recorded second-quarter fiscal year 2005 net income
of $373 million, or $1.37 per share, compared with net
income of $154 million, or $0.57 per share, in the second
quarter of fiscal year 2004.
Items affecting comparability for second
quarter of 2005 included:
Items affecting comparability for second
quarter of 2004 included:
The company’s first-half fiscal year 2005 net
income was $333 million, or $1.23 per share, compared with
net income of $57 million, or $0.21 per share, for the same
period in 2004.
Items affecting comparability for the first
half of fiscal year 2005 included:
-
A $(0.67) per share charge associated
with certain liabilities in connection with the Solutia
bankruptcy (“Solutia-related charge”).
-
A $0.39 per share tax benefit ($0.32 in
discontinued operations and $0.07 in continuing
operations) as a result of the loss incurred on the
European wheat and barley business.
-
Net restructuring charges of $(0.03) per
share.
-
$0.01 per share income on discontinued
operations.
Items
affecting comparability for the first half of fiscal year
2004 included:
-
Net restructuring charges of $(0.19) per
share.
-
A $(0.08) per share loss on discontinued
operations and related restructuring.
-
Write-off of goodwill associated with the
global wheat business of $(0.26) per share.
Operating costs:
Research-and-development (R&D) expenses were slightly higher
at $127 million for the second quarter. For the first half
of fiscal year 2005, R&D expenses were 7 percent higher at
$258 million, driven by the write-off of in-process R&D
costs associated with the acquisition of the North American
canola seed businesses of Advanta Seeds, as well as the
acquisition of Channel Bio Corp. by Monsanto’s American
Seeds, Inc. subsidiary.
Selling, general and administrative (SG&A)
expenses for second quarter 2005 were $303 million, compared
to $272 million in the second quarter of 2004. For the
first half of fiscal year 2005, SG&A expenses were $559
million, compared to $544 million in the same period in
2004. However, for the quarter and the first half, SG&A as
a percent of net sales decreased versus the comparable prior
periods. For the second quarter of fiscal year 2005, SG&A
as a percent of sales was 16 percent. For the first half,
SG&A as a percent of sales was 19 percent.
Cash flow:
Year-to-date 2005 net cash provided by operations was $453
million, compared with $217 million through the first half
of fiscal year 2004. Net cash provided (required) by
investing activities was $47 million through the first half
of the fiscal year 2005, and $(146) million for the same
period in 2004. As a result, year-to-date free cash flow
increased from $71 million in the first half of 2004 to $500
million in this year’s first half. Free cash flow in the
first half of fiscal year 2004 was affected by payments of
$400 million related to the Solutia PCB litigation
settlement. Additionally, the increase in free cash flow
for the first half of fiscal year 2005 resulted from the
timing of maturities of short-term investments, which was
somewhat offset by Monsanto’s seed acquisitions. (For a
reconciliation of free cash flow, see note 1.
Seeds and
Genomics Segment Detail
Net Sales
($ in millions) |
Second Quarter 2005 |
Second Quarter 2004 |
% Change |
Six Months 2005 |
Six
Months 2004 |
%
Change |
Corn seed and traits |
$646 |
$488 |
32% |
$874 |
$677 |
29% |
Soybean seed and traits |
$443 |
$316 |
40% |
$623 |
$489 |
27% |
All other crops seeds and traits |
$92 |
$70 |
31% |
$153 |
$101 |
51% |
TOTAL Seeds and Genomics |
$1,181 |
$874 |
35% |
$1,650 |
$1,267 |
30% |
The Seeds and Genomics segment consists of
the global seeds and related trait business, and genetic
technology platforms.
Second-quarter 2005 net sales of $1,181
million for the Seeds and Genomics segment were more than
one-third higher than sales of $874 million recorded in the
second quarter of fiscal year 2004. This improvement was
largely driven by increased revenues in both corn seed and
traits and soybean seed and traits. Corn seed and traits
increased 32 percent in the quarter-over-quarter comparison,
reflecting higher corn seed and trait sales in the United
States and corn seed sales in Europe. Soybean seed and
traits net sales increased 40 percent, primarily driven by
higher revenues for soybean traits in the United States.
For the first half of fiscal year 2005, the
Seeds and Genomics segment recorded an increase in sales of
30 percent to approximately $1.7 billion, driven by the
increased revenues in the corn seeds and traits and soybean
seeds and traits businesses.
EBIT (net income (loss) before interest and
taxes) for the Seeds and Genomics segment increased 240
percent, or $358 million, in the first half of fiscal year
2005, compared with the first half of 2004. The improvement
in EBIT for the first half of 2005 was driven primarily by
increased revenue for traits, which reflects increased
penetration, pricing flexibility and the value of stacking
more than one trait in a single seed. (For a reconciliation
of EBIT, see note 1.)
Agricultural Productivity Segment Detail
Net Sales
($ in millions) |
Second Quarter 2005 |
Second Quarter 2004 |
% Change |
Six
Months
2005 |
Six
Months
2004 |
%
Change |
Roundup and other
glyphosate-based agricultural herbicides |
$481 |
$371 |
30% |
$919 |
$807 |
14% |
All other agricultural
productivity products |
$247 |
$253 |
(2)% |
$416 |
$447 |
(7)% |
TOTAL Agricultural Productivity |
$728 |
$624 |
17% |
$1,335 |
$1,254 |
6% |
The Agricultural Productivity segment
consists primarily of crop protection products, the
lawn-and-garden herbicide products, and the company’s animal
agricultural businesses.
Net sales in the Agricultural Productivity
segment for the quarter improved by 17 percent, driven by
increased net sales of Roundup and other glyphosate-based
herbicides in all major world areas. For the quarter,
overall sales of Roundup and other glyphosate-based
herbicides increased, with increased sales of branded
Roundup herbicide in all major world areas outside of the
United States. Additionally, sales of non-branded
glyphosate-based herbicides also contributed to the
quarterly sales increase. The increase in sales for Roundup
and other glyphosate-based herbicides was offset by a slight
decline in revenues from all other agricultural products,
which decreased 2 percent in second quarter fiscal year
2005.
Compared with the first half of fiscal year
2004, the Agricultural Productivity segment recorded a
slight increase in sales of 6 percent in the first half of
fiscal year 2005, driven by increased revenues for Roundup
and other glyphosate-based herbicides. Sales of branded
Roundup herbicide were down modestly for the first half of
the fiscal year as higher sales outside the United States
were offset by decreased U.S. sales due to lower pricing.
For the first half of fiscal year 2005, higher non-branded
glyphosate sales also contributed to the overall increase in
sales.
EBIT for the Agricultural Productivity
segment decreased $189 million in the first half of fiscal
year 2005, compared with the first half of 2004. The
decrease in EBIT for the first half of 2005 was driven
primarily by the Solutia-related charge, which was somewhat
offset by lower operating expenses and improved sales of
Roundup and other glyphosate-based herbicides. (For a
reconciliation of EBIT, see note 1.)
Outlook
Comment from Monsanto Chairman, President and Chief
Executive Officer Hugh Grant:
“Following the acquisitions of Seminis and
Emergent, our focus is on the task of execution and
acceleration as we look to build on the positive momentum in
our seeds and traits business. We continue to remain
focused and disciplined, but we’re also more comfortable
that our performance to date will allow us to reach the
growth targets we’ve established for this year and
successive years.”
2005
Earnings and Free Cash Flow Outlook:
On March 29, Monsanto provided updated EPS
guidance for fiscal year 2005, with EPS on an ongoing
business basis expected to be in the range of $2.00 to
$2.05. The ongoing EPS guidance excludes estimated
in-process R&D and other purchase accounting adjustments of
$0.78 to $0.85 per share, the $0.67 per-share
Solutia-related charge, the tax benefit of $0.39 per share
as a result of the loss incurred on the European wheat and
barley business, a $0.03 per-share charge for restructuring,
and $0.01 per share income on discontinued operations. On
an as-reported basis, Monsanto expects EPS to be in the
range of
$0.85 to $0.97. (For a reconciliation of ongoing EPS, see
note 1.) Previously, Monsanto provided updated EPS guidance
for fiscal year 2005, with EPS on an ongoing business basis
expected to be toward the upper end of the $1.85 to $2.00
range, or in the range of $0.71 to $0.93 on an as-reported
basis.
Monsanto expects cash from operations to be
$1.2 billion. Including free cash to be used for the Seminis
and Emergent purchases, the company expects net cash
required by investing activities to be $2.1 billion. As a
result, the company expects free cash flow to be negative
$900 million for the fiscal year. (For a reconciliation of
free cash flow, see note 1.)
Other
Items of Note:
On April 5, Monsanto announced completed the
acquisition of Emergent Genetics’ cotton business. Emergent
will be integrated into Monsanto’s existing commercial
operations.
On April 5, Monsanto announced that it signed
a non-binding letter of intent to sell its Enviro-Chem unit
to the management of this subsidiary in a management
buyout. The parties are currently working on a definitive
agreement for the transaction, which is targeted to close by
the end of Monsanto’s 2005 fiscal year.
On March 24, Brazil’s President Luiz Inacio
Lula da Silva signed a biosafety bill into law which
establishes the regulatory process for the approval of
biotech crops. This law demonstrates that Brazil supports a
science-based regulatory system and is another indication of
the growing acceptance of biotechnology around the world.
On March 24, Monsanto announced it had
acquired selected agricultural assets of Icoria Inc. for
$6.75 million in cash, installment and milestone payments,
plus additional considerations. Monsanto acquired assets
related to functional genomics and transgenic applications,
which will be used in Monsanto’s discovery program.
On March 23, Monsanto and the University of
Nebraska-Lincoln signed an exclusive licensing agreement to
develop crops tolerant to the broadleaf herbicide dicamba.
On March 18, Brazil's regulatory body, the
National Commission for Biosafety, approved Monsanto’s
Bollgard insect-protected cotton.
On March
15, Monsanto announced it obtained U.S. regulatory clearance
for its next-generation cotton technology, Roundup Ready
Flex cotton. The U.S. regulatory clearance represents an
important step forward toward the anticipated commercial
launch for the 2006 growing season. Regulatory clearances in
other key production and export countries are anticipated
later this fiscal year.
On March
14, Monsanto announced a new collaborative relationship with
Modular Genetics Inc. (MGI) to advance Monsanto's protein
optimization platform. Monsanto gains an exclusive license
to MGI's platform for use in agricultural applications.
Applying this platform, Monsanto will be able to accelerate
its ability to identify and develop new traits for platforms
like agronomic traits, enhanced nutritional content and
improved yield properties.
On March
1, Monsanto’s American Seeds, Inc. subsidiary announced it
added NC+ Hybrids, Inc. to its family of regional brands
established to help serve farmer-customers with a
technology-rich, locally-oriented business model.
Supplemental data to this news release, including slides
that accompany the company’s financial results conference
call, are found at
www.monsanto.com. To access this supplemental
information, please go to the Investor Information section
of the web site.
Monsanto Company is a leading global provider
of technology-based solutions and agricultural products that
improve farm productivity and food quality.
Roundup, Bollgard and Roundup Ready are
registered trademarks owned by Monsanto Company and its
wholly owned subsidiaries.
Unless otherwise indicated, references to
“Roundup and other glyphosate-based herbicides” mean both
branded and non-branded glyphosate-based herbicides,
excluding all lawn-and-garden herbicide products.
Monsanto Company and Subsidiaries
Selected Financial
Information
(Dollars in millions,
except per share amounts)
Unaudited
Condensed Statement of
Consolidated Operations |
Three Months
Ended
Feb. 28, 2005 |
Three Months
Ended
Feb. 29, 2004 |
Six Months
Ended
Feb. 28, 2005 |
Six Months
Ended
Feb. 29, 2004 |
Net Sales |
$1,909 |
$1,498 |
$2,985 |
$2,521 |
Cost of Goods Sold
|
893 |
755 |
1,474 |
1,317 |
Gross Profit
|
1,016 |
743 |
1,511 |
1,204 |
Operating Expenses: |
|
|
|
|
Selling, General and
Administrative Expenses |
303 |
272 |
559 |
544 |
Bad-Debt Expense |
11 |
22 |
21 |
40 |
Research and Development
Expenses |
127 |
125 |
258 |
241 |
Impairment of Goodwill |
— |
— |
— |
69 |
Restructuring Charges – Net |
7 |
28 |
8 |
57 |
Total Operating Expenses |
448 |
447 |
846 |
951 |
Income From Operations |
568 |
296 |
665 |
253 |
Interest Expense – Net |
15 |
15 |
35 |
32 |
Solutia-Related Expenses |
9 |
14 |
293 |
14 |
Other Expense – Net
|
19 |
23 |
42 |
48 |
Income From Continuing Operations
Before Income Taxes |
525 |
244 |
295 |
159 |
Income Tax Provision |
154 |
88 |
50 |
82 |
Income From Continuing Operations
|
371 |
156 |
245 |
77 |
Discontinued Operations: |
|
|
|
|
Income (Loss) From
Operations of Discontinued Businesses
|
2 |
(3) |
2 |
(28) |
Income Tax Benefit |
— |
(1) |
(86) |
(8) |
Income (Loss) on Discontinued
Operations |
2 |
(2) |
88 |
(20) |
Net Income |
$ 373 |
$ 154 |
$ 333 |
$ 57 |
EBIT (1) |
$ 542 |
$ 256 |
$ 332 |
$ 163 |
Basic Earnings (Loss) Per Share: |
|
|
|
|
Income From Continuing Operations
|
$ 1.39 |
$ 0.59 |
$ 0.92 |
$ 0.29 |
Income (Loss) on Discontinued
Operations |
0.01 |
(0.01) |
0.33 |
(0.07) |
Net Income
|
$ 1.40 |
$ 0.58 |
$ 1.25 |
$ 0.22 |
|
|
|
|
|
Diluted Earnings (Loss) Per
Share: |
|
|
|
|
Income From Continuing Operations
|
$ 1.36 |
$ 0.58 |
$ 0.90 |
$ 0.29 |
Income (Loss) on Discontinued
Operations |
0.01 |
(0.01) |
0.33 |
(0.08) |
Net Income |
$ 1.37 |
$ 0.57 |
$ 1.23 |
$ 0.21 |
|
|
|
|
|
Weighted Average Shares
Outstanding: |
|
|
|
|
Basic Shares |
266.5 |
264.3 |
265.6 |
263.2 |
Diluted Shares |
272.9 |
268.8 |
271.3 |
267.4 |
Monsanto Company and
Subsidiaries
Selected
Financial Information
(Dollars in millions)
Unaudited
Condensed
Statement of Consolidated Financial Position |
As
of
Feb. 28, 2005 |
As
of
Aug. 31, 2004 |
Assets |
|
|
|
|
|
Current Assets: |
|
|
Cash and Cash Equivalents |
$1,096 |
$1,037 |
Short-Term Investments |
— |
300 |
Trade Receivables – Net of
Allowances of $259 and $250, respectively |
1,913 |
1,663 |
Miscellaneous
Receivables |
368 |
316 |
Deferred Tax Assets |
366 |
397 |
Inventories |
1,379 |
1,154 |
Assets of Discontinued
Operations |
67 |
— |
Other Current Assets |
87 |
64 |
|
5,276 |
4,931 |
|
|
|
Property, Plant and Equipment –
Net |
2,057 |
2,087 |
Goodwill – Net |
869 |
720 |
Other Intangible Assets – Net |
446 |
454 |
Other Assets |
1,195 |
972 |
Total Assets |
$9,843 |
$9,164 |
|
|
|
Liabilities and Shareowners’
Equity |
|
|
|
|
|
Current Liabilities: |
|
|
Short-Term Debt |
$ 99 |
$ 433 |
Accounts Payable |
360 |
326 |
Income Taxes Payable |
172 |
122 |
Accrued Marketing Programs |
264 |
419 |
Deferred Revenues |
237 |
16 |
Grower Accruals |
48 |
1 |
Liabilities of Discontinued
Operations |
37 |
— |
Miscellaneous Short-Term
Accruals |
593 |
577 |
Total Current Liabilities |
1,810 |
1,894 |
|
|
|
Long-Term Debt |
1,062 |
1,075 |
Postretirement Liabilities |
665 |
687 |
Solutia-Related Reserve |
202 |
— |
Other Liabilities |
274 |
250 |
Shareowners’ Equity
|
5,830 |
5,258 |
Total
Liabilities and Shareowners’ Equity
|
$9,843 |
$9,164 |
|
|
|
Debt to Capital Ratio: |
17% |
22% |
Monsanto Company and Subsidiaries
Selected
Financial Information
(Dollars in millions)
Unaudited
Statement of Consolidated Cash
Flows |
Six Months Ended
Feb. 28, 2005 |
Six Months Ended
Feb. 29, 2004 |
Operating Activities: |
|
|
Net Income
|
$ 333 |
$ 57 |
Adjustments to reconcile cash
provided (required) by operations: |
|
|
Items that did not require
(provide) cash: |
|
|
Depreciation and
amortization expense |
221 |
228 |
Impairment of goodwill |
— |
69 |
Impairment of assets
included in discontinued operations |
— |
29 |
Bad-debt expense |
21 |
40 |
Noncash restructuring |
7 |
32 |
Deferred income taxes |
(143) |
246 |
Gain on disposal of
investments and property – net |
(5) |
(5) |
Equity affiliate expense
– net |
15 |
20 |
Solutia-related charge
|
284 |
— |
Other items that did not
require cash |
38 |
19 |
Changes in assets
and liabilities that provided (required) cash,
net of acquisitions: |
|
|
Trade receivables |
65 |
478 |
Inventories |
(157) |
(79) |
Accounts payable and
accrued liabilities |
(163) |
(400) |
PCB litigation settlement
insurance proceeds (payments) |
4 |
(400) |
Solutia-related reserve |
(29) |
— |
Pension contributions |
(60) |
(150) |
Other Items |
22 |
33 |
Net Cash Provided by Operations |
453 |
217 |
|
|
|
Cash Flows Provided (Required) by
Investing Activities: |
|
|
Purchases of short-term
investments |
— |
(250) |
Maturities of short-term
investments |
300 |
230 |
Acquisitions of businesses, net
of cash acquired |
(173) |
— |
Technology and other investments |
(20) |
(33) |
Capital expenditures |
(83) |
(103) |
Other investment and property
disposal proceeds |
23 |
10 |
Net Cash Provided (Required) by
Investing Activities |
47 |
(146) |
|
|
|
Cash Flows Provided (Required) by
Financing Activities: |
|
|
Net change in financing with less
than 90-day maturities |
(95) |
(49) |
|
|
|
|
|
|
|
|
|
|
|
|
Payments on other financing |
(3) |
(3) |
Treasury stock purchases |
(74) |
(106) |
Stock option exercises |
92 |
119 |
Dividend payments |
(84) |
(68) |
Net Cash Required by Financing
Activities |
(441) |
(54) |
|
|
|
|
|
17 |
Cash and Cash Equivalents at
Beginning of Period |
1,037 |
281 |
Cash and Cash Equivalents at End
of Period |
$1,096 |
$298 |
Monsanto Company and Subsidiaries
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:
EBIT is defined as net income (loss) before interest and
taxes. The following table reconciles EBIT to the most
directly comparable financial measure, which is net income.
Total Monsanto Company and
Subsidiaries: |
Three Months
Ended
Feb. 28, 2005 |
Three Months
Ended
Feb. 29, 2004 |
Six Months
Ended
Feb. 28, 2005 |
Six Months
Ended
Feb. 29, 2004 |
|
|
|
|
|
EBIT – Seeds and Genomics Segment
|
$492 |
$273 |
$507 |
$149 |
EBIT –
Agricultural Productivity Segment
|
50 |
(17) |
(175) |
14 |
EBIT – Total Monsanto Company and
Subsidiaries |
542 |
256 |
332 |
163 |
Interest Expense – Net |
15 |
15 |
35 |
32 |
Income Tax Provision (Benefit)(1) |
154 |
87 |
(36) |
74 |
Net Income |
$373 |
$154 |
$333 |
$ 57 |
(1)
Includes the income tax provision from
continuing operations and the income tax benefit from
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.
Total Monsanto Company and Subsidiaries:
|
Fiscal Year
2005
Target |
Three Months
Ended
Feb. 28, 2005 |
Three Months
Ended
Feb. 29, 2004 |
Six
Months Ended
Feb. 28, 2005 |
Six
Months Ended
Feb. 29, 2004 |
|
|
|
|
|
|
Diluted Earnings per Share |
$0.85 – $0.97 |
$1.37 |
$0.57 |
$1.23 |
$0.21 |
Estimated In-Process R&D and Other
Purchase Accounting Adjustments |
0.78 – 0.85 |
|
|
|
|
Solutia-Related Charge |
0.67 |
— |
— |
0.67 |
— |
Tax Benefit on Loss from European Wheat and
Barley Business |
(0.39) |
— |
— |
(0.39) |
— |
Restructuring Charges – Net |
0.03 |
0.02 |
0.12 |
0.03 |
0.19 |
(Income) Loss on Discontinued Operations and
Related Restructuring |
(0.01) |
(0.01) |
0.01 |
(0.01) |
0.08 |
Impairment of Goodwill |
— |
— |
— |
— |
0.26 |
Diluted Earnings
per Share from Ongoing Operations
|
$2.00 – $2.05 |
$1.38 |
$0.70 |
$1.53 |
$0.74 |
Reconciliation of Free Cash Flow:
Free cash flow represents the total of cash flows from
operations and investing activities, as reflected in
Monsanto’s Statement of Consolidated Cash Flows presented in
this release. With respect to the projected free cash flow
guidance provided under the caption “2005 Earnings and Free
Cash Flow Outlook,” 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.
Total Monsanto Company and
Subsidiaries: |
Fiscal Year
2005
Target |
Six Months Ended
Feb. 28, 2005 |
Six Months Ended
Feb. 29, 2004 |
|
|
|
|
Net Cash Provided by Operations |
$1,200 |
$ 453 |
$ 217 |
Net Cash Provided (Required) by
Investing Activities |
(2,100) |
47 |
(146) |
Free Cash Flow
|
$ (900) |
$ 500 |
$ 71 |
Net Cash
Required by Financing Activities
|
N/A |
(441) |
(54) |
Net Increase
in Cash and Cash Equivalents
|
N/A |
$ 59 |
$ 17 |
Cash and Cash
Equivalents at Beginning of Period
|
N/A |
1,037 |
281 |
Cash and Cash
Equivalents at End of Period
|
N/A |
$1,096 |
$298 |
1.