St. Louis, Missouri
May 3, 2006
Monsanto Company (NYSE:
MON) Executive Vice President and Chief Financial Officer Terry
Crews is scheduled to present tomorrow at Bank of America's 2006
Basic Industries Conference in New York. Crews' presentation
will provide an update on Monsanto's business, its performance,
and other business matters.
During the presentation, Crews
will discuss Monsanto's recent accomplishments within its
commercial business, the progress in its R&D pipeline, as well
as its continued financial discipline - all of which have the
company poised for both near-term and long-term growth.
Biotech and Breeding Serve
as Key Contributors to Commercial Success
Monsanto has long been recognized as the biotech leader in the
agriculture industry based on its introduction of traits
technologies, including its Roundup Ready, YieldGard and
Bollgard products. More recently, the company is increasingly
being recognized for the strength of its plant breeding programs
and the value generated by those programs. The company is poised
for market share gains in the U.S. corn seed market for a fifth
consecutive year, which is largely a result of continuous
improvements being made in its corn breeding program.
"Farmers buy quality and yield
through the seed and technology decisions they make each and
every year," Crews said. "We're looking to maximize the
potential of seed for farmers - both its yield potential and the
technology used to protect it - so they can get more out of each
seed. This is the intersection of our plant breeding and biotech
programs, and a point that represents a unique advantage for our
business."
One example of this
intersection is demonstrated through how the company's corn
breeding and biotech programs are contributing to the ethanol
sector, Crews noted. The company's breeders have identified corn
hybrids which yield more ethanol per bushel. These hybrids are
then sold with the company's trait technologies which help
protect yield, and ultimately the plant's ethanol output.
Farmers Continue to Adopt
Trait Technologies, Stacked Seed Offerings
In the United States, the company continues to see strong
adoption of its corn and cotton trait offerings, including its
stacked-trait products which allow farmers to get more benefits
out of a single seed. Crews noted that U.S. cotton farmers are
expected to plant the industry's first second-generation
glyphosate-tolerant cotton technology, Roundup Ready Flex, on
more than 2 million acres this season. In corn, the company's
triple-trait technology has effectively sold out and is expected
to be planted on approximately 5 million acres this season.
In South America, Brazilian
soybean farmers have nearly completed harvesting this year's
production. The company expects that use of its Roundup Ready
soybean technology will be in the range of 50 percent of soybean
acres planted in Brazil. In India, the company expects that more
than 6 million cotton acres will be planted with the company's
Bollgard insect-protected trait this season, Crews said.
R&D Engine - A Strong
Foundation of Advancements in Breeding and Biotech
As part of his presentation, Crews will also discuss
developments within the company's R&D platform - including its
progress toward the introduction of second- and third-generation
technologies.
Crews will also highlight how
research at the company's joint venture with Cargill, Renessen,
may also contribute to the ethanol sector. Renessen is currently
working on a combination of biotech, breeding and processing
projects designed to increase the nutrient value of the
co-product stream from ethanol.
Financial Outlook
In his presentation, Crews will note that he continues to expect
Monsanto's full-year 2006 EPS guidance will be toward the upper
end of its range of $2.35 to $2.50, on a reported and ongoing
basis.
The company will also confirm
that its guidance for free cash flow in fiscal year 2006 remains
in the range of $825 million to $900 million. Free cash flow
guidance excludes cash that may be used for a rights offering in
connection with the bankruptcy proceedings of Solutia, Inc.
Monsanto's current guidance also does not reflect any equity in
Solutia, Inc., that the company may receive as a result of the
bankruptcy process.
Monsanto Company is a
leading global provider of technology-based solutions and
agricultural products that improve farm productivity and food
quality.
Bollgard, Roundup Ready and
YieldGard are registered trademarks owned by a Monsanto
affiliated company. |