Monsanto Company reported aftertax income of $69 million, or 10 cents per share, on sales of $2.3 billion for the fourth quarter of 1999. For the full year of 1999, Monsanto recorded net income of $575 million, or 88 cents per share, on sales of $9.1 billion. Fourth quarter and full-year 1999 results include several unusual items. If unusual items were excluded, net income in the fourth quarter would have been $115 million, or 18 cents per share, and full-year net income would have been $650 million, or $1.00 per share.

In comparison, for the fourth quarter of 1998, Monsanto reported a net loss of $603 million, or a loss of $1.00 per share, on sales of $1.7 billion. For the full year of 1998, the company recorded an aftertax loss of $250 million, or a loss of 41 cents per share, on sales of $7.2 billion. Both the fourth quarter and full-year results included unusual items. If these items were excluded for the fourth quarter of 1998, the company would have reported an aftertax net income of $27 million, or 5 cents per share. For the full year of 1998, if unusual items were excluded, aftertax income would have been $580 million, or 93 cents per share.

Fourth-quarter and full-year 1999 and 1998 net income included income from discontinued operations. On July 1, 1999, Monsanto announced its intent to divest its artificial sweeteners and biogum businesses. As a result, the artificial sweeteners, biogum, alginates and Ortho lawn and garden businesses have been reclassified as discontinued operations in all periods presented. During 1999, the company sold the alginates and Ortho lawn and garden businesses. On February 4, 2000, the company announced an agreement to sell its tabletop sweetener business. The company is continuing to make progress on the divestiture of the remaining businesses.

Aftertax income from continuing operations, excluding unusual items, for the fourth quarter of 1999 was $78 million, or 12 cents per share, compared with break-even income from continuing operations, excluding unusual items, for the same period in 1998.

Monsanto's earnings before interest expense and taxes (EBIT) for the fourth quarter of 1999 was $124 million, compared with an EBIT loss for the fourth quarter of 1998 of $513 million. For the full year of 1999, the company reported EBIT of $1.1 billion, compared with EBIT of $125 million for the full year of 1998. Both fourth-quarter and full-year EBIT results include unusual items.

Earnings before interest expense, taxes, depreciation and amortization (EBITDA), excluding unusual items, for the fourth quarter of 1999 was $367 million compared with EBITDA, excluding unusual items, for the same period in 1998 of $223 million. For the full year of 1999, EBITDA, excluding unusual items, was $1.9 billion, compared with EBITDA, excluding unusual items, of $1.4 billion.

"As a result of strong performances from our agriculture and pharmaceutical businesses and sound financial management, we exceeded the financial targets we set for ourselves in the beginning of 1999,'' said Robert B. Shapiro, Monsanto's chairman and chief executive officer. "The global launch of Celebrex arthritis treatment surpassed the expectations of most industry and financial analysts. The product has significant momentum in the marketplace and considerable growth potential remains. We continued to see strong growth in volumes of Roundup herbicide and sales of seed with Monsanto's biotechnology traits. We also made important progress on strengthening our balance sheet. We reduced debt through management of capital expenditures, and working capital as a percentage of sales declined in 1999 when compared with working capital as a percentage of sales in 1998.''

EBIT, excluding unusual items, for the agriculture segment during the fourth quarter of 1999 was $11 million, compared with an EBIT loss, excluding unusual items, of $53 million for the same period in 1998. For the full year of 1999, the segment recorded EBIT, excluding unusual items, of $775 million, compared with EBIT, excluding unusual items, of $868 million for the full year of 1998. The year-to-year decline in EBIT for the agriculture segment was a result of higher amortization costs associated with the company's recently acquired seed businesses.

EBITDA, excluding unusual items, in the fourth quarter of 1999 was $168 million for the segment,
compared with EBITDA, excluding unusual items, of $60 million in the fourth quarter of 1998.
EBITDA, excluding unusual items, for the full year of 1999 was $1.3 billion, compared with EBITDA, excluding unusual items, of $1.2 billion in 1998. The year-to-year increase in EBITDA, excluding unusual items, for the agricultural segment was primarily a result of growth in volumes of Roundup herbicide, the inclusion of a full year of results from seed companies acquired in 1998, and revenues from licensing of biotechnology traits. Volumes of Roundup herbicide increased above the product's historic 20 percent growth trend. Global acres of crops containing Monsanto biotechnology traits rose to 86 million acres, compared with 58 million acres in 1998, an increase of 48 percent. Early indications regarding planting intentions by U.S. growers continue to suggest that acres containing Monsanto biotechnology traits in 2000 are expected to at least equal and, more likely, exceed 1999 acres.

Searle, Monsanto's pharmaceutical segment, reported EBIT, excluding unusual items, of $223 million for the fourth quarter of 1999, compared with EBIT, excluding unusual items, of $181 million during the same period in 1998. For the full year of 1999, Searle recorded EBIT, excluding unusual items, of $655 million, compared with full-year EBIT, excluding unusual items, of $309 million in 1998.

EBITDA, excluding unusual items, for the segment was $263 million during the fourth quarter of 1999, compared with EBITDA, excluding unusual items, of $224 million during the fourth quarter of 1998. EBITDA, excluding unusual items, for the segment for the full year of 1999 was $813 million, compared with EBITDA, excluding unusual items, of $451 million for the full year of 1998.

The launch of Celebrex arthritis treatment was the primary driver for the increase in EBIT, excluding unusual items, and EBITDA, excluding unusual items, in 1999. Though the product was launched in late January 1999, total product sales exceeded $1.5 billion in 1999, including more than $500 million in the fourth quarter. The Celebrex launch was the most successful in industry history, with 16.6 million total prescriptions in 1999, including 9.7 million new prescriptions and 6.9 million refills.

On December 19, 1999, Monsanto and Pharmacia & Upjohn, Inc. (NYSE: PNU - news) entered into a definitive agreement to create a new global pharmaceutical company. The merger is expected to close in the first half of 2000.

Roundup and Celebrex are trademarks owned or licensed by Monsanto Company and its
subsidiaries.

Company news release
N2480