St. Louis, Missouri
April 16, 2008
New program reflects focus on
using strong cash position to benefit shareowners
As part of its continuing effort to translate earnings growth
into value for its shareowners,
Monsanto Company (NYSE:
MON) announced today that its Board of Directors has approved a
new three-year share repurchase program.
Monsanto's Board of Directors authorized a new share repurchase
program for up to $800 million of the company's common stock
over a three-year period.
This repurchase program will commence at the time the company's
current share repurchase program is completed or its original
target of October 2009, whichever is earlier.
Terry Crews, Executive Vice President and Chief Financial
Officer of Monsanto, announced the company's intent to
accelerate the purchase of shares under its existing share
repurchase plan. The company's current share repurchase program
was established in October 2005 as a four-year $800-million
authorization. To date, the company is more than half way
through the authorization and has repurchased a cumulative total
of $429 million in shares through Feb. 29, 2008.
"Our share repurchase initiative reinforces our continued
commitment to return value to our shareowners," said Crews.
"This new program underscores the board's confidence in
Monsanto's strategy and our financial discipline, and also
reflects the new sustainable level of cash generation we believe
will come from our Roundup business as well as the receipt of
cash from our settlement with Solutia."
Crews noted that the share repurchase program is one of the key
elements of Monsanto's three-pronged approach to using its
strong cash position to benefit shareowners. In addition to
repurchasing shares, Crews indicated that the company will
continue to look for ways to invest capital to support the
current business' growth, to invest in acquisitions that further
growth, and to use dividends that return value to shareowners.
Monsanto announced earlier this month that it expects that its
capital spend for its 2008 fiscal year will be in the range of
$950 million. The company expects that its capital spending will
remain at this level in its 2009 fiscal year as Monsanto invests
in projects to meet the growing demand for its seeds and traits
business, as well as its Roundup agricultural herbicides
business.
Last month, Monsanto announced the acquisition of De Ruiter
Seeds, a leading vegetable seed company based in the
Netherlands. Upon completion, this acquisition is expected to
transform Monsanto's vegetable seed platform into a $1 billion
revenue business by 2012.
Last fall, Monsanto increased its quarterly dividend on its
common shares from 12.5 cents per share to 17.5 cents per share,
or an increase of 40 percent. The increase represented the
largest increase in the company's quarterly dividend in its
history. Since Monsanto was spun off as an independent company
in August 2002, its Board of Directors has raised the dividend
six times, an increase of nearly 200 percent.
Monsanto Company is a leading global provider of
technology-based solutions and agricultural products that
improve farm productivity and food quality.
References to Roundup herbicides in this release mean Roundup
branded herbicides, excluding lawn-and-garden herbicide
products. |
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