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Monsanto increases ongoing earnings per share guidance for fiscal year, provides initial third-quarter estimate

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St. louis, Missouri
June 15, 2007

Based on the near completion of the U.S. planting season and following a preliminary review of Monsanto's third-quarter performance, the company announced today that it was increasing its fiscal year 2007 ongoing earnings per share (EPS) guidance to $1.75 to $1.80 per share, versus the prior guidance of $1.60 to $1.65 per share on an ongoing basis.

As a part of the increased expectations for the fiscal year, the company also reported that third-quarter results were expected to be approximately $1.00 per share on an ongoing and reported basis.

"We're having extraordinary performance in an extraordinary year for agriculture," said Hugh Grant, Monsanto chairman, president and chief executive officer. "The performance of our business has set us up for strong growth this year and continues to create momentum for future growth."

"Our leadership has come from our ability to deliver on our growth projections while maintaining our operational and financial discipline," said Grant.

The company noted that several factors are driving its results, including:

  • Strong ending to the corn planting season in the United States: The results reflect significant continued adoption of the company's corn seeds and traits in the United States.

  • Strong results from the company's herbicide business: The results in the quarter reflect significant early-season purchases of its Roundup and other glyphosate-based herbicides in the United States and continued strong sales internationally.

  • A better-than-expected tax rate: The resolution of tax audits will result in approximately a $0.05 benefit in the third quarter, and Monsanto now expects its full-year tax rate to be in the range of 29 percent to 30 percent, versus the company's previous expectation of a tax rate of 30 percent.

The company also noted that its full-year ongoing guidance includes an expectation that Delta and Pine Land Company's (D&PL) earnings will be moderately dilutive, as it historically has reported a loss in the fourth quarter. Monsanto also noted that its full-year guidance excludes the nonrecurring effect of the expected Stoneville and NexGen divestitures and the write-off of acquired in-process R&D associated with the acquisition of D&PL. These amounts are expected to be significant but cannot be estimated at this time, as the company is required to hold D&PL separate from the rest of its operations until the divestitures of Stoneville and NexGen are completed.

Monsanto will report its financial results for its fiscal year 2007 third quarter on Thursday, June 28, 2007, prior to market open.

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

 

 

 

 

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