Progress In Plant Breeding And Biotech Programs, Coupled With Continued Financial Discipline, Underscore Monsanto Company's Success

ST. LOUIS, May 3 /PRNewswire-FirstCall/ -- Monsanto Company Executive Vice President and Chief Financial Officer Terry Crews is scheduled to present tomorrow at Bank of America's 2006 Basic Industries Conference in New York. Crews' presentation will provide an update on Monsanto's business, its performance, and other business matters.

During the presentation, Crews will discuss Monsanto's recent accomplishments within its commercial business, the progress in its R&D pipeline, as well as its continued financial discipline -- all of which have the company poised for both near-term and long-term growth.

Biotech and Breeding Serve as Key Contributors to Commercial Success

Monsanto has long been recognized as the biotech leader in the agriculture industry based on its introduction of traits technologies, including its Roundup Ready, YieldGard and Bollgard products. More recently, the company is increasingly being recognized for the strength of its plant breeding programs and the value generated by those programs. The company is poised for market share gains in the U.S. corn seed market for a fifth consecutive year, which is largely a result of continuous improvements being made in its corn breeding program.

"Farmers buy quality and yield through the seed and technology decisions they make each and every year," Crews said. "We're looking to maximize the potential of seed for farmers -- both its yield potential and the technology used to protect it -- so they can get more out of each seed. This is the intersection of our plant breeding and biotech programs, and a point that represents a unique advantage for our business."

One example of this intersection is demonstrated through how the company's corn breeding and biotech programs are contributing to the ethanol sector, Crews noted. The company's breeders have identified corn hybrids which yield more ethanol per bushel. These hybrids are then sold with the company's trait technologies which help protect yield, and ultimately the plant's ethanol output.

Farmers Continue to Adopt Trait Technologies, Stacked Seed Offerings

In the United States, the company continues to see strong adoption of its corn and cotton trait offerings, including its stacked-trait products which allow farmers to get more benefits out of a single seed. Crews noted that U.S. cotton farmers are expected to plant the industry's first second-generation glyphosate-tolerant cotton technology, Roundup Ready Flex, on more than 2 million acres this season. In corn, the company's triple-trait technology has effectively sold out and is expected to be planted on approximately 5 million acres this season.

In South America, Brazilian soybean farmers have nearly completed harvesting this year's production. The company expects that use of its Roundup Ready soybean technology will be in the range of 50 percent of soybean acres planted in Brazil. In India, the company expects that more than 6 million cotton acres will be planted with the company's Bollgard insect-protected trait this season, Crews said.

R&D Engine -- A Strong Foundation of Advancements in Breeding and Biotech

As part of his presentation, Crews will also discuss developments within the company's R&D platform -- including its progress toward the introduction of second- and third-generation technologies. Crews will also highlight how research at the company's joint venture with Cargill, Renessen, may also contribute to the ethanol sector. Renessen is currently working on a combination of biotech, breeding and processing projects designed to increase the nutrient value of the co-product stream from ethanol.

Financial Outlook

In his presentation, Crews will note that he continues to expect Monsanto's full-year 2006 EPS guidance will be toward the upper end of its range of $2.35 to $2.50, on a reported and ongoing basis. (For a reconciliation of EPS on an ongoing basis, see note 1.)

The company will also confirm that its guidance for free cash flow in fiscal year 2006 remains in the range of $825 million to $900 million. Free cash flow guidance excludes cash that may be used for a rights offering in connection with the bankruptcy proceedings of Solutia, Inc. Monsanto's current guidance also does not reflect any equity in Solutia, Inc., that the company may receive as a result of the bankruptcy process. (For a reconciliation of free cash flow, see note 2.)

Webcast Information

Crews' presentation slides and a simultaneous audio webcast of the presentation will be available on May 4 at 4:45 p.m. ET (3:45 p.m. CT) through Bank of America's conference web site. To access the webcast of this presentation, go to: http://www.veracast.com/webcasts/bas/basic06/id25215133.cfm .

Following the live broadcast, a replay of the webcast will be available for two weeks through this same link. Crews' presentation slides will also be archived at the Investor Relations section of Monsanto's web site at http://www.monsanto.com .

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. For more information on Monsanto, see: http://www.monsanto.com .

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, including proceedings related to Solutia Inc.; developments related to foreign currencies and economies; successful completion and operation of recent and proposed 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 filings with 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: Bollgard, Roundup Ready and YieldGard are registered trademarks owned by a Monsanto affiliated company.

Monsanto Company Reconciliations of Non-GAAP Financial Measures Unaudited

Ongoing EPS and Free Cash Flow: The presentations of 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 ongoing EPS and free cash flow to the respective most directly comparable financial measures calculated in accordance with GAAP.

1. 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 Fiscal Year 2006 2005 Target Diluted Earnings per Share $2.35 - $2.50 $0.94 In-Process R&D Write-Off Related to the Seminis and Emergent Acquisitions - 0.91 Solutia-Related Charge - 0.64 Tax Benefit on Loss from European Wheat and Barley Business - (0.39) Restructuring Charges - Net - 0.02 Income on Discontinued Operations and Related Restructuring - (0.04) Diluted Earnings per Share from Ongoing Business $2.35 - $2.50 $2.08 2. Reconciliation of Free Cash Flow: Free cash flow represents the total of cash flows from operations and investing activities. With respect to the projected free cash flow guidance provided under the caption "Fiscal Year 2006 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. (Dollars in millions) Fiscal Year Fiscal Year 2006 2005 Target Net Cash Provided by Operations $1,375-$1,450 $1,737 Net Cash Required by Investing Activities $(550) (1,667) Free Cash Flow $825 - $900 $70 Net Cash Provided (Required) by Financing Activities N/A (582) Net Increase (Decrease) in Cash and Cash Equivalents N/A (512) Cash and Cash Equivalents at Beginning of Period N/A 1,037 Cash and Cash Equivalents at End of Period N/A $525

Monsanto Company

CONTACT: Media, Lee Quarles, +1-314-694-2330, or Investors, Scarlett LeeFoster, +1-314-694-8148, both of Monsanto Company

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