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Monsanto Company's Global Performance Drives 25 Percent 2012 Ongoing Earnings Per Share Growth; Company Underscores Mid-Teens



Monsanto Company's Global Performance Drives 25 Percent 2012 Ongoing Earnings
  Per Share Growth; Company Underscores Mid-Teens Ongoing Earnings Per Share
                          Growth Opportunity In 2013

Company Projects 2013 Ongoing and As-Reported Earnings Per Share Guidance of
$4.18 to $4.32

PR Newswire

ST. LOUIS, Oct. 3, 2012

ST. LOUIS, Oct. 3, 2012 /PRNewswire/ -- Monsanto Company (NYSE: MON) today
announced it concluded fiscal year 2012 with ongoing earnings per share growth
of 25 percent, and added that it is well-positioned to attain mid-teens
ongoing earnings per share growth next year. The company delivered growth in
its base business in the United States on the continued adoption of its key
corn and soybean platforms, complemented by international seeds and traits
performance. Executives also highlighted early 2012 U.S. corn harvest results,
which reinforce Monsanto's long-standing yield advantage even in one of the
most difficult growing seasons on record.

                                         Fourth Quarter      Fiscal Year
($ in millions)                        2012      2011      2012      2011
Net Sales By Segment
       Corn seed and traits            $ 588     $ 671     $ 5,814   $ 4,805
       Soybean seed and traits           142       96        1,771     1,542
       Cotton seed and traits            29        181       779       847
       Vegetable seeds                   284       267       851       895
       All other crops seeds and         172       136       586       493
       traits
TOTAL Seeds and Genomics               $ 1,215   $ 1,351   $ 9,801   $ 8,582
       Agricultural productivity       $ 895     $ 896     $ 3,715   $ 3,240
TOTAL Agricultural Productivity        $ 895     $ 896     $ 3,715   $ 3,240
TOTAL Net Sales                        $ 2,110   $ 2,247   $ 13,516  $ 11,822
Gross Profit                           $ 881     $ 972     $ 7,045   $ 6,079
Operating Expenses                     $ 1,137   $ 1,042   $ 3,897   $ 3,577
Interest Expense – Net                 $ 34      $ 22      $ 114     $ 88
Other Expense (Income) – Net           $ —       $ 2       $ 46      $ 40
Net Income (Loss) Attributable to      $ (229)   $ (112)   $ 2,045   $ 1,607
Monsanto Company
Diluted Earnings (Loss) per Share (See $ (0.42)  $ (0.21)  $ 3.79    $ 2.96
note 1.)
Items Affecting Comparability – EPS
Impact
       Restructuring charges, net      $ (0.02)  $ (0.01)  $ (0.02)  $ —
       Income on discontinued            —         —         (0.01)    —
       operations
       Nitro claims settlement           —         —         0.05      —
       Resolution of a legacy tax        —         —         (0.11)    —
       matter
Diluted Earnings (Loss)  per Share
from Ongoing Business (For the         $ (0.44)  $ (0.22)  $ 3.70    $ 2.96
definition of ongoing EPS, see note
1.)
Effective Tax Rate                       24%       3%        30%       30%

 

 

                                                    Fourth Quarter Fiscal Year
Comparison as a Percent of Net Sales:               2012     2011  2012   2011
 Gross profit                                       42    %  43  % 52  %  51 %
 Selling, general and administrative expenses       34    %  29  % 18  %  19 %
 (SG&A)
 Research and development expenses                  21    %  18  % 11  %  12 %
 Income (Loss) from continuing operations before    (14)  %  (4) % 22  %  20 %
 income taxes
 Net income (Loss) attributable to Monsanto Company (11)  %  (5) % 15  %  14 %

"We've proven our business on a global stage with back-to-back years of
tremendous performance and momentum," said Hugh Grant, chairman and chief
executive officer for Monsanto. "With more waves of innovation and global
opportunities than ever before, I'm confident that by building off what we
accomplished in 2012 we can achieve steady growth in fiscal year 2013 as we
continue to deliver sustainable yield to our farmer customers."

Results of Operations

Monsanto reported net sales of $2.1 billion for the fourth quarter of fiscal
year 2012.  Net sales for the full fiscal year were $13.5 billion, a 14
percent increase over fiscal year 2011. Full year net sales results were
driven primarily by higher global corn seeds and traits revenue, and increased
soybean seeds and traits revenue in the United States and Brazil.

Seeds and Genomics segment net sales were $1.2 billion for the quarter, a
decrease from the prior year.  For the fiscal year, net sales for the Seeds
and Genomics segment reached $9.8 billion, a 14 percent increase over the
prior year. Agricultural Productivity segment net sales were $895 million for
the quarter.  Net sales for the Agricultural Productivity segment for the
fiscal year grew to $3.7 billion. 

Monsanto reported a net loss of $229 million in the fourth quarter of fiscal
year 2012, compared with a reported net loss of $112 million in the same
period last year.  Net income for fiscal year 2012 was $2 billion, an increase
over fiscal year 2011 net income of $1.6 billion.

The company's fiscal year 2012 earnings per share (EPS) was $3.70 on an
ongoing basis and $3.79 on an as-reported basis.  For the fourth quarter, the
company reported a loss per share of $0.44 on an ongoing basis and $0.42 on an
as-reported basis.  (For a reconciliation of ongoing EPS, see page 1 and note
1.)

Cash Flow

For fiscal year 2012, net cash provided by operating activities was a source
of $3 billion, compared with a source of $2.8 billion in fiscal year 2011. Net
cash required by investing activities was $1 billion in fiscal year 2012,
compared with net cash required of $975 million last year. Net cash required
by financing activities was $1.2 billion for fiscal year 2012, compared with
net cash required of $864 million in fiscal year 2011. Free cash flow was a
source of $2 billion for fiscal year 2012, compared to a source of $1.8
billion in fiscal year 2011. (For a reconciliation of free cash flow, see note
1.) 

Outlook

In fiscal year 2013, Monsanto expects to achieve mid-teens ongoing EPS growth
off the 2012 base of $3.70 for a range of $4.18 to $4.32. The company expects
as-reported EPS to also be in the range of $4.18 to $4.32.  (For a
reconciliation of 2013 EPS guidance, see note 1.)

The Seeds and Genomics segment is expected to deliver gross profit in the
range of $6.55 billion in 2013, with gross profit growth projected to be
divided roughly evenly between the United States and international regions.

Gross profit for the Agricultural Productivity segment next year is expected
in the range of $1 billion.

The company projects free cash flow in the range of $1.7 billion to $1.8
billion for fiscal year 2013.  The company expects net cash provided by
operating activities to be $2.8 billion to $3.1 billion, and net cash required
by investing activities to be approximately $1.1 billion to $1.3 billion for
fiscal year 2013. (For a reconciliation of free cash flow, see note 1.) 

In fiscal year 2013, the company expects selling, general and administrative
expenses to be in the range of $2.55 billion. The company's research and
development spend is projected in the range of $1.53 billion for fiscal year
2013.

Seeds and Genomics Segment Detail

($ in          Net Sales                        Gross Profit
millions)
Seeds and      Fourth Quarter   Fiscal Year     Fourth Quarter   Fiscal Year
Genomics       2012    2011     2012    2011    2012     2011    2012    2011
Corn Seed    $ 588   $ 671    $ 5,814 $ 4,805 $ 284   $  340   $ 3,589 $ 2,864
and Traits
Soybean Seed   142     96       1,771   1,542   81       92      1,160   1,045
and Traits
Cotton Seed    29      181      779     847     18       140     585     642
and Traits
Vegetable      284     267      851     895     159      173     419     534
Seeds
All Other
Crops Seeds    172     136      586     493     89       45      306     221
and Traits
TOTAL Seeds  $ 1,215 $ 1,351  $ 9,801 $ 8,582 $ 631   $  790   $ 6,059 $ 5,306
and Genomics

 

 ($ in millions)               Earnings (Loss) Before Interest & Taxes (EBIT)
                               Fourth Quarter             Fiscal Year
 Seeds and Genomics            2012        2011           2012      2011
 EBIT (For a reconciliation of $   (387)   $   (157)      $  2,570  $  2,106
 EBIT, see note 1.)
 Unusual Items Affecting EBIT: $   10      $   4          $  10     $  (11)
 Restructuring

 

The Seeds and Genomics segment consists of the company's global seeds and
related traits business.

For the fiscal year, Monsanto realized Seeds and Genomics segment sales of
$9.8 billion, reflecting a 14 percent increase over the prior year. Segment
sales in the fourth quarter were $1.2 billion, a decrease from the prior year
period.

In the United States, branded seed volume in fiscal year 2012 grew by the
largest increment in three years and outpaced market expansion. In corn, the
company reached 27 million planted U.S. acres for its Genuity^® Reduced Refuge
Family. While harvest is still in progress, the company shared some early
highlights of what the 2012 U.S. corn harvest has shown to date:

  o In a year when average corn yields are significantly down, DEKALB^®
    continues its historic advantage relative to competitive products. In
    2012, DEKALB^® is outperforming competitive products with approximately a
    8 bushels per acre national yield advantage, with Monsanto's germplasm
    providing greater consistency in performance amidst this season's drought
    conditions. Results to date by region also show an advantage over
    competitors for DEKALB^®, including approximately a 9 bushels per acre
    yield advantage in the Central Corn Belt and approximately a 8 bushels per
    acre yield advantage in the Southern Region.
  o Monsanto's Genuity^® DroughtGard^™ Hybrids system, which combines
    germplasm selected for its drought-tolerant characteristics, the
    drought-tolerant biotechnology trait and agronomic recommendations, has
    demonstrated strong performance in Ground Breakers℠ on-farm testing this
    season. Compared head-to-head to competitor hybrids marketed to the
    drought segment, DroughtGard^™ Hybrids results across the Western Great
    Plains show approximately a 5 bushels per acre yield advantage to date. 

In 2013, the company is targeting 36 million to 38 million acres for the
Reduced Refuge Family. Genuity^® VT Triple PRO^® RIB Complete^®, a convenient,
single-bag refuge option, will join Genuity^® SmartStax^® RIB Complete^® and
Genuity^® VT Double PRO^® RIB Complete^® corn blends as an additional product
choice available for the 2013 season. The DroughtGard^™ Hybrids system will
also be introduced in 2013 in the Western Great Plains under stewardship
requirements pending import approvals in key export markets.

In soybeans, the company reached a total of 32 million acres for its Genuity^®
Roundup Ready 2 Yield^® product in the United States. The company expects the
Genuity^® Roundup Ready 2 Yield^® platform growth to continue, targeting 39
million to 41 million acres in 2013.

In 2013, the company expects Latin America to again be a strong source of
growth complementing the U.S. business, driven by the continued corn
opportunity in Brazil and Argentina. In Argentina, the company has introduced
Genuity^® VT Triple PRO^® corn as another product choice for farmers and
expects the acceleration of the conversion of double stacks to the
triple-stack product. Similarly, in Brazil, growers choosing to upgrade from
single trait corn products to the first double stack, VT PRO^™ 2, is also
expected to accelerate. Complementing the continued strong adoption of the
company's next-generation soy platform in the United States, the Intacta RR2
PRO^™ soybean product is expected to be a driver of growth with expanded
Ground Breakers℠ on-farm testing planned for 2013 as the product ramps up for
commercial launch in Brazil and is introduced in other countries in coming
years.

Vegetable sales, up in the fourth quarter compared to the prior year period,
were down year-over-year. In 2013, the company expects the vegetable business
to return to growth and continues to anticipate it elevating to its third
largest crop platform in terms of gross profit in the coming years. Cotton
revenue decreased year-over-year due in part to acre shifts to other crops.

Agricultural Productivity Segment Detail

($ in millions)  Net Sales                        Gross Profit
                   Fourth Quarter   Fiscal Year     Fourth      Fiscal Year
                                                    Quarter
                   2012     2011    2012    2011    2012   2011   2012   2011
Agricultural     $ 895   $  896   $ 3,715 $ 3,240 $ 250  $ 182  $ 986  $ 773
Productivity
TOTAL
Agricultural     $ 895   $  896   $ 3,715 $ 3,240 $ 250  $ 182  $ 986  $ 773
Productivity

 

 ($ in millions)               Earnings (Loss) Before Interest & Taxes (EBIT)
 Agricultural Productivity         Fourth Quarter            Fiscal Year
                                   2012           2011       2012       2011
 EBIT (For a reconciliation of $   123         $  59      $  477     $  281
 EBIT, see note 1.)
 Unusual Items Affecting EBIT:
     Restructuring             $   —           $  4       $  —       $  8
     EBIT from Discontinued    $   2           $  (1)     $  10      $  3
     Operations
     Nitro Claims Settlement   $   —           $  —       $  (44)    $  —

The Agricultural Productivity segment consists of the crop protection products
and lawn-and-garden herbicide products.

Segment sales for the quarter reached $895 million with gross profit of $250
million.  For the fiscal year, the segment delivered net sales of $3.7 billion
with gross profit of $986 million, with year-over-year increases that reflect
strong performance from the company's Roundup^®, lawn-and-garden and selective
herbicides businesses.

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 future expectations 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/investors or by visiting
http://edge.media-server.com/m/p/763un9g6/lan/en. Visitors may need to
download Windows Media Player™ 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 the company blog, Beyond the Rows^® at
www.monsantoblog.com, 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 and the previously-announced SEC investigation; the previously
reported material weakness in our internal controls over financial reporting;
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: Monsanto and the Vine Design, DEKALB, Genuity, SmartStax,
RIB Complete, VT Triple PRO, VT PRO 2, VT Double PRO, DroughtGard, Intacta RR2
PRO and Roundup Ready 2 Yield are trademarks of Monsanto Company and its
wholly-owned subsidiaries.

Contact Media: Sara Miller (314-694-5824)
        Analysts: Bryan Hurley (314-694-8148)

 

Monsanto Company

Selected Financial Information

(Dollars in millions, except per share amounts)

Unaudited

 
Statements of Consolidated          Three Months Ended    Twelve Months Ended
Operations
                                    Aug. 31,              Aug. 31,
                                    2012        2011      2012         2011
Net Sales                         $ 2,110     $ 2,247   $ 13,516    $  11,822
Cost of Goods Sold                  1,229       1,275     6,471        5,743
Gross Profit                        881         972       7,045        6,079
Operating Expenses:
     Selling, general and           709         647       2,390        2,190
     administrative expenses
     Research and development       438         403       1,517        1,386
     expenses
     Restructuring charges, net     (10)        (8)       (10)         1
Total Operating Expenses            1,137       1,042     3,897        3,577
Income (Loss) From Operations       (256)       (70)      3,148        2,502
Interest Expense                    52          45        191          162
Interest Income                     (18)        (23)      (77)         (74)
Other Expense (Income), Net         —           2         46           40
Income (Loss) from Continuing       (290)       (94)      2,988        2,374
Operations Before Income Taxes
Income Tax Provision (Benefit)      (70)        3         901          717
Income (Loss) from Continuing
Operations Including Portion
     Attributable to              $ (220)     $ (97)    $ 2,087     $  1,657
     Noncontrolling Interest
Discontinued Operations:
Income (Loss) from Operations of    2           (1)       10           3
Discontinued Businesses
Income Tax Provision                1           —         4            1
Income (Loss) on Discontinued       1           (1)       6            2
Operations
Net Income (Loss)                 $ (219)     $ (98)    $ 2,093     $  1,659
Less: Net Income Attributable to    10          14        48           52
Noncontrolling Interest
Net Income (Loss) Attributable to $ (229)     $ (112)   $ 2,045     $  1,607
Monsanto Company
EBIT (see note 1)                 $ (264)     $ (98)    $ 3,047     $  2,387
Basic Earnings (Loss) per Share
Attributable to Monsanto Company:
Income (Loss) from Continuing     $ (0.43)    $ (0.21)  $ 3.82      $  2.99
Operations
Income on Discontinued Operations   (0.01)      —         0.01         0.01
Net Income (Loss) Attributable to $ (0.44)    $ (0.21)  $ 3.83      $  3.00
Monsanto Company
Diluted Earnings (Loss) per Share
Attributable to Monsanto Company:
Income (Loss) from Continuing     $ (0.42)    $ (0.21)  $ 3.78      $  2.96
Operations
Income (Loss) on Discontinued       —           —         0.01         —
Operations
Net Income (Loss) Attributable to $ (0.42)    $ (0.21)  $ 3.79      $  2.96
Monsanto Company
Weighted Average Shares
Outstanding:
     Basic                          533.5       535.1     534.1        536.5
     Diluted                        539.1       540.8     540.2        542.4

 

Monsanto Company

Selected Financial Information

(Dollars in millions)

Unaudited

 
Condensed Statements of Consolidated Financial    As of          As of
Position
                                                  Aug. 31, 2012  Aug. 31, 2011
Assets
Current Assets:
  Cash and cash equivalents (variable interest    $    3,283     $    2,572
  entities restricted - 2012: $120 and 2011: $96)
  Short-term investments                               302            302
  Trade receivables, net (variable interest            1,897          2,117
  entities restricted - 2012: $52 and 2011: $51)
  Miscellaneous receivables                            622            629
  Deferred tax assets                                  597            446
  Inventory, net                                       2,836          2,591
  Other current assets                                 183            152
Total Current Assets                                   9,720          8,809
Property, Plant and Equipment, Net                     4,365          4,394
Goodwill                                               3,436          3,365
Other Intangible Assets, Net                           1,237          1,309
Noncurrent Deferred Tax Assets                         488            873
Long-Term Receivables, Net                             376            475
Other Assets                                           602            619
Total Assets                                      $    20,224    $    19,844
Liabilities and Shareowners' Equity
Current Liabilities:
  Short-term debt, including current portion of        36             678
  long-term debt
  Accounts payable                                     794            839
  Income taxes payable                                 75             117
  Accrued compensation and benefits                    546            427
  Accrued marketing programs                           1,281          1,110
  Deferred revenues                                    396            373
  Grower production accruals                           194            87
  Dividends payable                                    200            161
  Customer payable                                     14             94
  Restructuring reserves                               —              24
  Miscellaneous short-term accruals                    685            819
Total Current Liabilities                              4,221          4,729
Long-Term Debt                                         2,038          1,543
Postretirement Liabilities                             543            509
Long-Term Deferred Revenue                             245            337
Noncurrent Deferred Tax Liabilities                    313            152
Long-Term Portion of Environmental and Litigation      213            176
Reserves
Other Liabilities                                      615            682
Monsanto Shareowners' Equity                           11,833         11,545
Noncontrolling Interest                                203            171
Total Shareowners' Equity                              12,036         11,716
Total Liabilities and Shareowners' Equity         $    20,224    $    19,844
Debt to Capital Ratio:                                 15%            16%

 

Monsanto Company

Selected Financial Information

(Dollars in millions)

Unaudited

 
Statements of Consolidated Cash Flows             Twelve Months Ended Aug. 31,
                                                  2012                2011
Operating Activities:
 Net Income                                     $ 2,093          $    1,659
 Adjustments to reconcile cash provided
 (required) by operating activities:
 Items that did not require (provide) cash:
       Depreciation and amortization              622                 613
       Bad-debt expense                           3                   3
       Stock-based compensation expense           128                 104
       Excess tax benefits from stock-based       (50)                (36)
       compensation
       Deferred income taxes                      292                 135
       Restructuring charges, net                 (10)                1
       Equity affiliate income, net               (19)                (21)
       Net gain on sales of a business or other   (4)                 (5)
       assets
       Other items                                105                 81
 Changes in assets and liabilities that
 provided (required) cash, net of acquisitions:
       Trade receivables, net                     89                  (310)
       Inventory, net                             (419)               156
       Deferred revenues                          (43)                62
       Accounts payable and other accrued         379                 894
       liabilities
       Restructuring cash payments                (12)                (183)
       Pension contributions                      (83)                (291)
       Other items                                (20)                (48)
Net Cash Provided by Operating Activities         3,051               2,814
Cash Flows Provided (Required) by Investing
Activities:
       Purchases of short-term investments        (746)               (732)
       Maturities of short-term investments       746                 430
       Capital expenditures                       (646)               (540)
       Acquisitions of businesses, net of cash    (322)               (99)
       acquired
       Technology and other investments           (77)                (55)
       Other investments and property disposal    11                  21
       proceeds
Net Cash Required by Investing Activities         (1,034)             (975)
Cash Flows Provided (Required) by Financing
Activities:
       Net change in financing with less than     (116)               69
       90-day maturities
       Short-term debt proceeds                   30                  84
       Short-term debt reductions                 (42)                (74)
       Long-term debt proceeds                    499                 299
       Long-term debt reductions                  (629)               (193)
       Payments on other financing                —                   (1)
       Debt issuance costs                        (5)                 (5)
       Treasury stock purchases                   (432)               (502)
       Stock option exercises                     117                 65
       Excess tax benefits from stock-based       50                  36
       compensation
       Tax withholding on restricted stock and    (19)                (4)
       restricted stock units
       Dividend payments                          (642)               (602)
       Proceeds from noncontrolling interests     101                 69
       Dividend payments to noncontrolling        (77)                (105)
       interests
Net Cash Required by Financing Activities         (1,165)             (864)
Cash Assumed from Initial Consolidations of       —                   77
Variable Interest Entities
Effect of Exchange Rate Changes on Cash and       (141)               35
Cash Equivalents
Net Increase in Cash and Cash Equivalents         711                 1,087
Cash and Cash Equivalents at Beginning of         2,572               1,485
Period
Cash and Cash Equivalents at End of Period      $ 3,283          $    2,572

 

Monsanto Company
Selected Financial Information
(Dollars in millions, except per share amounts)
Unaudited
   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)
   attributable to Monsanto Company, cash flows, financial position or
1. 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) attributable to Monsanto Company 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) attributable to Monsanto.

 

                                      Three Months Ended  Twelve Months Ended
                                      Aug. 31,            Aug. 31,
                                         2012      2011      2012       2011
 EBIT – Seeds and Genomics Segment    $  (387)   $ (157)  $  2,570    $ 2,106
 EBIT – Agricultural Productivity         123      59        477        281
 Segment
 EBIT– Total                              (264)    (98)      3,047      2,387
 Interest Expense, Net                    34       22        114        88
 Income Tax Provision (Benefit)^(A)       (69)     (8)       888        692
 Net Income (Loss) Attributable to    $  (229)   $ (112)  $  2,045    $ 1,607
 Monsanto Company

 

      Includes the income tax provision from continuing operations, the income
^(A)  tax provision (benefit) 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 Three Months Ended Twelve Months Ended
                            2013        Aug. 31,           Aug. 31,
                            Guidance    2012      2011     2012       2011
Diluted Earnings (Loss) per $4.18-$4.32 $  (0.42) $ (0.21) $  3.79    $  2.96
Share
Restructuring Charges, Net  —              (0.02)   (0.01)    (0.02)     —
Income on Discontinued      —              —        —         (0.01)     —
Operations
Nitro Claims Settlement     —              —        —         0.05       —
Resolution of a Legacy Tax  —              —        —         (0.11)     —
Matter
Diluted Earnings (Loss) per $4.18-$4.32 $  (0.44) $ (0.22) $  3.70    $  2.96
Share from Ongoing Business

 

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 2013 free cash flow guidance, 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         Twelve Months Ended
                                      2013                Aug. 31,
                                      Guidance            2012         2011
 Net Cash Provided by Operating       $ 2,800-3,100     $ 3,051     $  2,814
 Activities
 Net Cash Required by Investing         (1,100)-(1,300)   (1,034)      (975)
 Activities
 Free Cash Flow                       $ 1,700-1,800     $ 2,017     $  1,839
 Net Cash Required by Financing         N/A               (1,165)      (864)
 Activities
 Cash Assumed from Initial
 Consolidations of Variable Interest    N/A               —            77
 Entities
 Effect of Exchange Rate Changes on     N/A               (141)        35
 Cash and Cash Equivalents
 Net Increase in Cash and Cash          N/A               711          1,087
 Equivalents
 Cash and Cash Equivalents at           N/A               2,572        1,485
 Beginning of Period
 Cash and Cash Equivalents at End of    N/A             $ 3,283     $  2,572
 Period

SOURCE Monsanto Company

Website: http://www.monsanto.com
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