Monsanto Announces Financial Results, Future Position as a Mid-Teens Growth Company
ST. LOUIS, April 7, 2010 /PRNewswire-FirstCall/ — Looking at its second quarter results and competitive dynamics in the marketplace, Monsanto Company (NYSE: MON) today said it expects to emerge from 2010 in a position to generate annual earnings growth percentages in the mid-teens. As part of its earnings results for the quarter ending Feb. 28, 2010, the company discussed performance against projections in both the seeds and traits and agricultural productivity segments during a year of intense competitive pressure for both sides of the business. While recommitting to full-year financial guidance for free cash flow and earnings per share at the low end of its previously stated range, the company acknowledged its goal of doubling 2007 gross profit by 2012 is unlikely.
Second Second Six Six
Quarter Quarter Months Months
($ in millions) 2010 2009 2010 2009
--------------- ------- ------- ------- -------
Net Sales by Segment
Corn seed and traits $2,247 $2,078 $2,816 $2,706
Soybean seed and traits 633 615 834 827
Cotton seed and traits 34 33 93 80
Vegetable seeds 223 209 396 366
All other crops seeds and
traits 111 107 140 162
--- --- --- ---
TOTAL Seeds and Genomics $3,248 $3,042 $4,279 $4,141
Roundup and other glyphosate-
based herbicides $465 $776 $974 $2,135
All other agricultural
productivity products 177 217 334 408
--- --- --- ---
TOTAL Agricultural
Productivity $642 $993 $1,308 $2,543
TOTAL Net Sales $3,890 $4,035 $5,587 $6,684
--------------- ------ ------ ------ ------
Gross Profit $2,099 $2,521 $2,838 $4,071
------------ ------ ------ ------ ------
Operating Expenses $821 $949 $1,598 $1,751
------------------ --- --- ------ ------
Interest Expense - Net $27 $8 $55 $6
Other Expense (Income) - Net $2 $32 $(10) $58
Net Income Attributable to
Monsanto Company $887 $1,092 $868 $1,648
-------------------------- --- ------ --- ------
Diluted Earnings per Share $1.60 $1.97 $1.57 $2.96
-------------------------- ----- ----- ----- -----
Items Affecting Comparability
- EPS Impact
Income on Discontinued
Operations $ - $ - $(0.01) $(0.02)
Acquired In-Process R&D (Aly
Participacoes Ltda.) - 0.19 - 0.19
Restructuring 0.10 - 0.12 -
Diluted Earnings per Share
from Ongoing Business (For
the definition of ongoing
EPS, see note 1.) $1.70 $2.16 $1.68 $3.13
--------------------------- ----- ----- ----- -----
Effective Tax Rate
(Continuing Operations) 29% 29% 28% 27%
------------------------ --- --- --- ---
Second Second Six Six
Comparison as a Percent of Net Quarter Quarter Months Months
Sales: 2010 2009 2010 2009
------------------------------ ------- ------- ------- -------
Gross profit 54% 62% 51% 61%
Selling, general and
administrative expenses
(SG&A) 13% 13% 18% 16%
Research and development
expenses (excluding acquired
in-process R&D) 7% 7% 10% 8%
Income from continuing
operations before income
taxes 32% 38% 21% 34%
Net Income Attributable to
Monsanto Company 23% 27% 16% 25%
-------------------------- --- --- --- ---
“Over the course of a five-year operational plan, the landscape can change,” said Hugh Grant, chairman, president and chief executive officer for Monsanto. “While there may be options to make an accelerated push for 2012, it’s clear to me that achieving that objective would involve making short-term choices that are not in the long-range interests of the business. Still, nothing has changed in my fundamental view of the business. We have the best products, we have a commercial and technology lead and we have the experience to apply the lessons of 2010. Given that, I am confident that we’re a growth company going forward.”
Results of Operations
Net sales decreased $145 million, or 4 percent, in the three-month comparison primarily as a result of lower prices for the company’s glyphosate-based herbicides. These price decreases were central to the company’s strategy of increasing global volume, which increased in several regions including Brazil, Argentina, Asia, and the United States. Net income in the second quarter was $887 million.
Gross profit declined 17 percent in the quarter to $2.1 billion, also driven by the price decreases for Roundup and other glyphosate-based herbicides. For the first six months, gross profit is down 30 percent or $1.2 billion.
Operating expenses decreased 13 percent, or $128 million, in the second quarter 2010 compared to the prior year. In the three-month comparison, selling, general and administrative (SG&A) expenses decreased 2 percent. R&D expenses increased 5 percent as the company continues to manage more projects in advanced pipeline phases. As a percent of net sales, SG&A expenses were 13 percent and R&D expenses were 7 percent.
Restructuring expense for the quarter was $84 million. This included $54 million charged to U.S. corn cost-of-goods sold, as the result of a decision to exit some product lines in the U.S. branded corn business to streamline product SKUs across multiple brands.
Earnings per share (EPS) for the second quarter was $1.60 on an as-reported basis, and $1.70 on an ongoing basis. EPS for the first six months of fiscal year 2010 was $1.57 on an as-reported basis, and $1.68 on an ongoing basis. (For a reconciliation of EPS to ongoing EPS see page 1).
Cash Flow
The second quarter was a significant source of cash generation, which began to offset the use of cash from the first quarter. For the first half of fiscal year 2010, cash flow from operations was a source of $256 million compared to $1.5 billion in the first half last year. Net cash required by investing activities for the first half of fiscal year 2010 was $345 million, a decrease from $359 million for the same period of fiscal year 2009.
Net cash required by financing activities for the first half of 2010 was $259 million, compared to net cash required of $601 million for the same period of fiscal year 2009.
Free cash flow was a use of $89 million for the first half of fiscal year 2010, compared to a source of $1.1 billion for the first half of fiscal year 2009. (For a reconciliation of free cash flow, see note 1.)
Outlook
The company affirmed its previously announced cash flow and EPS guidance, with EPS expected at the low end of its range. The company expects free cash flow for fiscal year 2010 will be in the range of $900 million to $1 billion, including the after-tax cash effect from a restructuring charge of approximately $250 million. The company expects net cash provided by operating activities to be $1.9 billion to $2.1 billion, and net cash required by investing activities to be approximately $1 billion to $1.1 billion for fiscal year 2010. (For a reconciliation of free cash flow, see note 1.)
The company confirmed full-year 2010 ongoing EPS guidance is in the low end of the range of $3.10 to $3.30. Full-year 2010 EPS guidance on an as-reported basis is in low end of the range of $2.85 to $3.11. (For a reconciliation of EPS, see note 1.)
SG&A expenses continued to run below planned spend, trending to the low end of the company’s targeted range, and are expected to represent approximately 18 percent of sales for the year. The company remains on track to deliver one-third of the $220 million to $250 million in annual cost savings in the fiscal year and the full savings in 2011 due to the restructuring.
Seeds and Genomics Segment Detail
---------------------------------
($ in millions) Net Sales
--------------- ---------
Second Second Six Six
Quarter Quarter Months Months
Seeds and Genomics 2010 2009 2010 2009
------------------ ------- ------- ------- -------
Corn seed and traits $2,247 $2,078 $2,816 $2,706
-------------------- ------ ------ ------ ------
Soybean seed and
traits 633 615 834 827
---------------- --- --- --- ---
Cotton seed and traits 34 33 93 80
---------------------- --- --- --- ---
Vegetable seeds 223 209 396 366
---------------------- --- --- --- ---
All other crops seeds
and traits 111 107 140 162
--------------------- --- --- --- ---
TOTAL Seeds and
Genomics $3,248 $3,042 $4,279 $4,141
--------------- ------ ------ ------ ------
($ in millions) Gross Profit
--------------- ------------
Second Second Six Six
Quarter Quarter Months Months
Seeds and Genomics 2010 2009 2010 2009
------------------ ------- ------- ------- -------
Corn seed and traits $1,420 $1,412 $1,724 $1,815
-------------------- ------ ------ ------ ------
Soybean seed and
traits 386 373 525 518
---------------- --- --- --- ---
Cotton seed and traits 15 21 48 47
---------------------- --- --- --- ---
Vegetable seeds 138 115 250 195
---------------------- --- --- --- ---
All other crops seeds
and traits 53 56 62 80
--------------------- --- --- --- ---
TOTAL Seeds and
Genomics $2,012 $1,977 $2,609 $2,655
--------------- ------ ------ ------ ------
Earnings Before Interest & Taxes
($ in millions) (EBIT)
--------------- --------------------------------
Second Second
Quarter Quarter Six
Seeds and Genomics 2010 2009 Six Months
------------------ ------- ------- --- -------
Months 2009
------ ----
2010
----
EBIT (For a reconciliation
of EBIT, see note 1.) $1,362 $1,212 $1,305 $1,277
-------------------------- ------ ------ ------ ------
Unusual Items Affecting EBIT
----------------------------
Restructuring $59 NONE $62 NONE
------------- --- ---- --- ----
IPR&D resulting from
acquisition of Aly
Participacoes Ltda. NONE $162 NONE $162
-------------------- ---- ---- ---- ----
The Seeds and Genomics segment consists of the company’s global seeds and related traits business, and biotechnology platforms.
The company said it has made solid progress on this year’s main objectives for the segment: expanding trait penetration in Latin America and establishing Genuity(TM) SmartStax(TM) corn and Genuity(TM) Roundup Ready 2 Yield® soybeans in their launch years. With strong trait expansion achieved in Brazil and Argentina earlier this year, the company said this year’s unprecedented product launches have it well-positioned in corn and soybeans.
While total returns are not final, the company said it expects total acreage to reach approximately 3 million acres for Genuity(TM) SmartStax(TM) corn and 6 million acres for Genuity(TM) Roundup Ready 2 Yield® soybeans. More promising, the company said, are the broad trials in both crops. More than 40 percent of the company’s branded customers are trying Genuity(TM) Roundup Ready 2 Yield® and more than 20 percent of the company’s branded customers are trying Genuity(TM) SmartStax(TM).
Cotton and vegetables are tracking well with expectations and may potentially boost overall seeds and traits gross profit contributions for the year.
In total, sales for Monsanto’s Seeds and Genomics segment in the second quarter of fiscal 2010 increased 7 percent. Corn seed and traits net sales increased 8 percent or $169 million due in large part to higher branded sales in Brazil, the United States and Argentina in the quarter. Soybean sales were up by 3 percent or $18 million, driven by an increase in planted acres in Brazil, in the three-month period.
The vegetable business continued to perform well as a result of improved product availability, with sales growing $14 million or 7 percent for the quarter.
Agricultural Productivity Segment Detail
----------------------------------------
($ in millions) Net Sales
--------------- ---------
Second Second Six Six
Agricultural Quarter Quarter Months Months
Productivity 2010 2009 2010 2009
------------ ------- ------- ------- -------
Roundup and other
glyphosate-based
herbicides $465 $776 $974 $2,135
----------------- ---- ---- ---- ------
All other agricultural 177 217 334 408
---------------------- --- --- --- ---
productivity products
---------------------
TOTAL Agricultural
Productivity $642 $993 $1,308 $2,543
------------------ ---- ---- ------ ------
($ in millions) Gross Profit
--------------- ------------
Second Second Six Six
Agricultural Quarter Quarter Months Months
Productivity 2010 2009 2010 2009
------------ ------- ------- ------- -------
Roundup and other
glyphosate-based
herbicides $(1) $437 $86 $1,241
----------------- --- ---- --- ------
All other agricultural 88 107 143 175
---------------------- --- --- --- ---
productivity products
---------------------
TOTAL Agricultural
Productivity $87 $544 $229 $1,416
------------------ --- ---- ---- ------
Earnings Before Interest & Taxes
($ in millions) (EBIT)
--------------- --------------------------------
Second Second Six Six
Agricultural Quarter Quarter Months Months
Productivity 2010 2009 2010 2009
------------ ------- ------- ------- -------
EBIT (For a
reconciliation of EBIT,
see note 1.) $(87) $326 $(53) $999
------------------------ ---- ---- ---- ----
Unusual Items Affecting EBIT
----------------------------
Restructuring $25 NONE $36 NONE
------------- --- ---- --- ----
EBIT from Discontinued
Operations NONE $1 $5 $19
---------------------- ---- --- --- ---
The Agricultural Productivity segment consists of the crop protection products and lawn-and-garden herbicide products.
Sales in the second quarter of fiscal 2010 for Monsanto’s Agricultural Productivity segment declined 35 percent or $351 million compared with the same period last year. Gross profit was break-even primarily because of the persistence of generic inventory in key markets paired with the use of sales incentives to address the competitive pricing environment. Globally, most branded prices were in the targeted $10 to $12 range.
Acknowledging some key trends that deviated from the core planning assumptions for Roundup and other glyphosate-based herbicides – including the continued presence of generic inventory and competitive pricing strategies – the company said it now sees gross profit for the segment at plus-or-minus $600 million for the year.
Webcast Information
In conjunction with this announcement, Monsanto will hold a conference call at 8:30 a.m. central time (9:30 a.m. eastern time) today. The call will focus on these results and may include a discussion of Monsanto’s strategic initiatives, product performance and other matters related to the company’s business.
Presentation slides and a simultaneous audio webcast of the conference call may be accessed by visiting the company’s web site at www.monsanto.com and clicking on “Investor Information.” Visitors may need to download Windows Media Player(TM) prior to listening to the webcast. Following the live broadcast, a replay of the webcast will be available on the Monsanto Web site for three weeks.
About Monsanto Company
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world’s natural resources such as water and energy. To learn more about our business and our commitments, please visit: www.monsanto.com . Follow our business on Twitter® at www.twitter.com/MonsantoCo, on Facebook® at www.facebook.com/MonsantoCo, or subscribe to our News Release RSS Feed .
Cautionary Statements Regarding Forward-Looking Information:
Certain statements contained in this release are “forward-looking statements,” such as statements concerning the company’s anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company’s actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company’s exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the company’s research and development activities; the outcomes of major lawsuits; developments related to foreign currencies and economies; successful operation of recent acquisitions; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company’s estimates related to distribution inventory levels; the company’s ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company’s facilities; and other risks and factors detailed in the company’s most recent Form 10-K Report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.
Notes to editors: Roundup, Genuity, SmartStax and Roundup Ready 2 Yield are trademarks of Monsanto Company and its wholly-owned subsidiaries.
References to Roundup herbicides in this release mean Roundup-branded herbicides, excluding lawn-and-garden herbicide products.
Contact Media: Kelli Powers (314-694-4003)
Analysts: Bryan Hurley (314-694-8148)
Monsanto Company
Selected Financial Information
(Dollars in millions, except per share amounts)
Unaudited
Three Three
Months Months Six Months Six Months
Statements of Ended Ended Ended Ended
Consolidated Feb. 28, Feb. 28, Feb. 28, Feb. 28,
Operations 2010 2009 2010 2009
------------- --------- --------- ---------- ----------
Net Sales $3,890 $4,035 $5,587 $6,684
Cost of Goods Sold 1,791 1,514 2,749 2,613
----- ----- ----- -----
Gross Profit 2,099 2,521 2,838 4,071
Operating Expenses:
Selling, General and
Administrative
Expenses 512 522 1,008 1,072
Research and
Development Expenses 279 265 546 517
Acquired In-Process
Research and
Development - 162 - 162
Restructuring Charges,
Net 30 - 44 -
Total Operating
Expenses 821 949 1,598 1,751
Income From Operations 1,278 1,572 1,240 2,320
Interest Expense 41 26 80 49
Interest Income (14) (18) (25) (43)
Other Expense
(Income)- Net 2 32 (10) 58
--- --- --- ---
Income from Continuing
Operations Before
Income Taxes 1,249 1,532 1,195 2,256
Income Tax Provision 360 440 330 616
Income from Continuing
Operations Including
Portion Attributable
to Noncontrolling
Interest 889 1,092 865 1,640
Discontinued Operations:
Income From Operations
of Discontinued
Businesses - 1 5 19
Income Tax Provision - - - 8
--- --- --- ---
Income on Discontinued
Operations - 1 5 11
Net Income $889 $1,093 $870 $1,651
==== ====== ==== ======
Less: Net Income
Attributable to
Noncontrolling
Interest 2 1 2 3
=== === === ===
Net Income
Attributable to
Monsanto Company $887 $1,092 $868 $1,648
==== ====== ==== ======
EBIT (See note 1) $1,275 $1,538 $1,252 $2,276
====== ====== ====== ======
Basic Earnings per Share:
Income From Continuing
Operations $1.63 $1.99 $1.58 $2.99
Income on Discontinued
Operations - .01 .01 0.02
Net Income $1.63 $2.00 $1.59 $3.01
===== ===== ===== =====
Diluted Earnings per Share:
Income From Continuing
Operations $1.60 $1.96 $1.56 $2.94
Income on Discontinued
Operations - .01 .01 0.02
Net Income $1.60 $1.97 $1.57 $2.96
===== ===== ===== =====
Weighted Average Shares
Outstanding:
Basic 545.8 547.2 545.7 548.0
Diluted 553.4 555.5 553.4 556.5
------- ----- ----- ----- -----
Monsanto Company
Selected Financial Information
(Dollars in millions)
Unaudited
Condensed Statements of Consolidated As of Feb. As of Aug.
Financial Position 28, 2010 31, 2009
------------------------------------ ---------- ----------
Assets
Current Assets:
Cash and Cash Equivalents $1,607 $1,956
Trade Receivables, Net 2,093 1,556
Miscellaneous Receivables 634 654
Deferred Tax Assets 595 662
Inventory, Net 3,199 2,934
Other Current Assets 117 121
--- ---
Total Current Assets 8,245 7,883
Property, Plant and Equipment, Net 3,687 3,609
Goodwill 3,226 3,218
Other Intangible Assets, Net 1,313 1,371
Noncurrent Deferred Tax Assets 775 743
Long-Term Receivables, Net 468 557
Other Assets 532 496
--- ---
Total Assets $18,246 $17,877
======= =======
Liabilities and Shareowners' Equity
Current Liabilities:
Short-Term Debt, Including Current
Portion of Long-Term Debt $114 $79
Accounts Payable 673 676
Income Taxes Payable 266 79
Accrued Compensation and Benefits 185 263
Accrued Marketing Programs 667 934
Deferred Revenues 601 219
Grower Production Accruals 208 139
Dividends Payable 145 145
Customer Payable - 307
Restructuring Reserves 197 286
Miscellaneous Short-Term Accruals 623 629
--- ---
Total Current Liabilities 3,679 3,756
Long-Term Debt 1,726 1,724
Postretirement Liabilities 720 793
Long-Term Deferred Revenue 444 488
Noncurrent Deferred Tax Liabilities 140 153
Long-Term Portion of Environmental and
Litigation Reserves 191 197
Other Liabilities 605 641
Monsanto Shareowners' Equity 10,701 10,056
Noncontrolling Interest 40 69
--- ---
Total Shareowners' Equity 10,741 10,125
====== ======
Total Liabilities and Shareowners' Equity $18,246 $17,877
======= =======
Debt to Capital Ratio: 15% 15%
---------------------- === ===
Monsanto Company
Selected Financial Information
(Dollars in millions)
Unaudited
Six Months Six Months
Ended Feb. Ended Feb.
Statements of Consolidated Cash Flows 28, 2010 28, 2009
------------------------------------- ---------- ----------
Operating Activities:
Net Income $870 $1,651
Adjustments to Reconcile Cash Provided by Operating
Activities:
Items That Did Not Require (Provide) Cash:
Depreciation and Amortization 294 270
Bad-Debt Expense 26 49
Stock-Based Compensation Expense 52 55
Excess Tax Benefits from Stock-Based
Compensation (31) (12)
Deferred Income Taxes (62) 2
Restructuring Charges, Net 44 -
Equity Affiliate Income, Net (18) (9)
Acquired In-Process Research and
Development - 162
Net Gain on Sales of a Business or Other
Assets (2) (6)
Other Items 38 (2)
Changes in Assets and Liabilities that Provided
(Required) Cash, Net of Acquisitions:
Trade Receivables, Net (459) (244)
Inventory, Net (241) (972)
Deferred Revenues 341 158
Accounts Payable and Other Accrued
Liabilities (323) 402
Restructuring Cash Payments (124) -
Pension Contributions (86) (34)
Net Investment Hedge Settlement (4) 27
Other Items (59) 3
Net Cash Provided by Operating Activities 256 1,500
----------------------------------------- --- -----
Cash Flows Provided (Required) by Investing Activities:
Maturities of Short-Term Investments - 102
Capital Expenditures (342) (461)
Acquisitions of Businesses, Net of Cash
Acquired (23) (273)
Purchases of Long-Term Debt and Equity
Securities (8) (7)
Technology and Other Investments (14) (26)
Proceeds from Divestiture of a Business - 300
Other Investments and Property Disposal
Proceeds 42 6
Net Cash Required by Investing Activities (345) (359)
----------------------------------------- ---- ----
Cash Flows Provided (Required) by Financing Activities:
Net Change in Financing With Less Than
90-Day Maturities 126 (73)
Short-Term Debt Proceeds 25 55
Short-Term Debt Reductions (32) -
Long-Term Debt Reductions (1) (69)
Payments on Other Financing (1) -
Treasury Stock Purchases (124) (274)
Stock Option Exercises 38 17
Excess Tax Benefits from Stock-Based
Compensation 31 12
Dividend Payments (290) (264)
Dividend Payments to Noncontrolling
Interests (31) (5)
----------------------------------- --- ---
Net Cash Required by Financing Activities (259) (601)
----------------------------------------- ---- ----
Effect of Exchange Rate Changes on Cash and
Cash Equivalents (1) (149)
Net (Decrease) Increase in Cash and Cash
Equivalents (349) 391
Cash and Cash Equivalents at Beginning of
Period 1,956 1,613
----------------------------------------- ----- -----
Cash and Cash Equivalents at End of Period $1,607 $2,004
------------------------------------------ ====== ======
Monsanto Company
Selected Financial Information
(Dollars in millions)
Unaudited
1. EBIT, Ongoing EPS and Free Cash Flow: The presentations of
EBIT, ongoing EPS and free cash flow are not intended to
replace net income (loss), cash flows, financial position or
comprehensive income (loss), and they are not measures of
financial performance as determined in accordance with
generally accepted accounting principles (GAAP) in the United
States. The following tables reconcile EBIT, ongoing EPS and
free cash flow to the respective most directly comparable
financial measure calculated in accordance with GAAP.
Reconciliation of EBIT to Net Income (Loss): EBIT is defined as
earnings (loss) before interest and taxes. Earnings (loss) is
intended to mean net income (loss) as presented in the Statements
of Consolidated Operations under GAAP. The following table
reconciles EBIT to the most directly comparable financial measure,
which is net income (loss).
Three Months Ended Six Months Ended
------------------ ----------------
Feb. 28, Feb. 28, Feb. 28, Feb. 28,
2010 2009 2010 2009
---- ---- ---- ----
EBIT - Seeds and
Genomics Segment $1,362 $1,212 $1,305 $1,277
EBIT - Agricultural
Productivity Segment (87) 326 (53) 999
--- --- --- ---
EBIT- Total 1,275 1,538 1,252 2,276
Interest Expense - Net 27 8 55 6
Income Tax Provision
(A) 361 438 329 622
Net Income
Attributable to
Monsanto Company $887 $1,092 $868 $1,648
----------------- ==== ====== ==== ======
(A) Includes the income tax provision from continuing operations, the
income tax benefit (provision) on noncontrolling interest, and the
income tax provision on discontinued operations,
Reconciliation of EPS to Ongoing EPS: Ongoing EPS is calculated excluding certain after-tax items which Monsanto does not consider part of ongoing operations.
Fiscal Year Six months
2010 ended Feb.
Guidance 28, 2010
----------- ----------
Diluted Earnings per Share $2.85-$3.11 $1.57
Restructuring Charges $0.19-$0.25 $.12
Income on Discontinued Operations - $(0.01)
Diluted Earnings per Share from Ongoing
Business $3.10-$3.30 $1.68
--------------------------------------- ----------- -----
Reconciliation of Free Cash Flow: Free cash flow represents the total of cash flows from operating activities and investing activities, as reflected in the Statements of Consolidated Cash Flows presented in this release. With respect to the fiscal year 2010 free cash flow target, Monsanto does not include any estimates or projections of Net Cash Provided (Required) by Financing Activities because in order to prepare any such estimate or projection, Monsanto would need to rely on market factors and conditions that are outside of its control.
Fiscal Year
2010 Six Months Ended
Guidance Feb. 28,
----------- ----------------
2010 2009
---- ----
Net Cash Provided by Operating
Activities $ 1,900-2,100 $256 $1,500
Net Cash Required by Investing
Activities (1,000)-(1,100) (345) (359)
--------------- ---- ----
Free Cash Flow $ 900-1,000 $(89) $1,141
Net Cash Required by Financing
Activities N/A (259) (601)
Effect of Exchange Rate Changes
on Cash and Cash Equivalents N/A (1) (149)
--- --- ----
Net (Decrease) Increase in Cash
and Cash Equivalents N/A $(349) $391
Cash and Cash Equivalents at
Beginning of Period N/A $1,956 $1,613
--- ------ ------
Cash and Cash Equivalents at End
of Period N/A $1,607 $2,004
-------------------------------- === ====== ======
SOURCE Monsanto Company