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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