Monsanto Company's Global Business Performance Drives Increased Full-Year Earnings Outlook

  Monsanto Company's Global Business Performance Drives Increased Full-Year
                               Earnings Outlook

Full-Year Ongoing Earnings Per Share Guidance Raised to $4.40 to $4.50, or
$4.42 to $4.52 As-Reported

PR Newswire

ST. LOUIS, April 3, 2013

ST. LOUIS, April 3, 2013 /PRNewswire/ -- With half of its fiscal year
complete, Monsanto Company (NYSE: MON) announced today that the continued
strength of its growing global business delivered another strong quarter for
its fiscal year 2013 and translated to a second consecutive quarterly increase
in full-year ongoing and as-reported earnings per share guidance. In reporting
earnings results for the second quarter and first half of the year, executives
noted results were driven by contributions from across the company's business
portfolio, including continued growth of its global corn business and positive
performance of its agricultural productivity segment.

                                    Second Quarter        Six Months
($ in millions)                     2013       2012       2013       2012
Net Sales By Segment
Corn seed and traits                $ 3,280    $ 2,816    $ 4,419    $ 3,711
Soybean seed and traits             677        689        908        931
Vegetable seeds                     199        215        355        372
Cotton seed and traits              60         66         245        260
All other crops seeds and traits    130        138        174        184
TOTAL Seeds and Genomics            $ 4,346    $ 3,924    $ 6,101    $ 5,458
Agricultural productivity           $ 1,126    $ 824      $ 2,310    $ 1,729
TOTAL Agricultural Productivity     $ 1,126    $ 824      $ 2,310    $ 1,729
TOTAL Net Sales                     $ 5,472    $ 4,748    $ 8,411    $ 7,187
Gross Profit                        $ 3,070    $ 2,705    $ 4,467    $ 3,801
Operating Expenses                  $ 958      $ 896      $ 1,846    $ 1,747
Interest Expense – Net              $ 8        $ 27       $ 36       $ 62
Other Expense – Net                 $ 22       $ 37       $ 39       $ 43
Net Income Attributable to          $ 1,483    $ 1,211    $ 1,822    $ 1,337
Monsanto Company
Diluted Earnings per Share (See     $ 2.74     $ 2.24     $ 3.37     $ 2.47
note 1.)
Items Affecting Comparability –
EPS Impact
Income on discontinued operations   (0.01)     (0.01)     (0.02)     (0.01)
Nitro Claims Settlement             —          0.05       —          0.05
Diluted Earnings per Share from
Ongoing Business (For the
                                    $ 2.73     $ 2.28     $ 3.35     $ 2.51
definition of ongoing EPS, see
note 1.)
Effective Tax Rate                  29      %  31      %  28      %  31      %



                                                    Second Quarter  Six Months
Comparison as a Percent of Net Sales:               2013     2012   2013  2012
 Gross profit                                       56  %    57  %  53 %  53 %
 Selling, general and administrative expenses       11  %    11  %  14 %  15 %
 Research and development expenses                  7   %    7   %  8  %  10 %
 Income from continuing operations before income    38  %    37  %  30 %  27 %
 taxes
 Net income attributable to Monsanto Company        27  %    26  %  22 %  19 %



"Our commitment to serving our farmer customers around the world is at the
core of everything we do," said HughGrant, chairman and chief executive
officer for Monsanto. "By understanding their needs and finding new ways to
work with them to meet growing demand, we've achieved momentum in our business
and strong results across our global portfolio. Our performance underscores
our expectation for a third consecutive year of strong earnings growth and
reinforces our opportunities for the future as well. As we move into the
second half of the year, we are thankful for the opportunity to serve our
customers and continue to earn their business as a leader in this dynamic
industry."

Results of Operations

The company achieved strong second quarter and first half results that reflect
the continued growth of its global business. Net sales for the quarter
increased $724 million or 15 percent to $5.5 billion in the three-month
comparison driven in part by 16 percent sales growth from its global corn
business. For the first six months, net sales increased $1.2 billion or 17
percent.

Operating expenses were up $62 million in the second quarter compared to the
prior year. In the three-month comparison, selling, general and administrative
(SG&A) expenses increased 10 percent to $598 million. Quarterly research and
development (R&D) expenses were up 2 percent to $360 million compared to the
prior year period.

The company's second quarter earnings per share (EPS) was $2.73 on an ongoing
and $2.74 on an as-reported basis, compared to an EPS of $2.28 on an ongoing
and $2.24 on an as-reported basis in the same quarter last year. EPS for the
first six months of fiscal year 2013 was $3.35 on an ongoing and $3.37 on an
as-reported basis. (For a reconciliation of EPS to ongoing EPS see page 1).

Cash Flow

For the first half of fiscal year 2013, cash flow from operations was a source
of nearly $1.9 billion compared to$1.7 billion for the same period last year.

Net cash required by investing activities for the first half of fiscal year
2013 was $301 million, compared to $402million for the same period of fiscal
year 2012. Net cash required by financing activities for the first half of
2013 was $422 million, compared to net cash required of $672 million for the
same period of fiscal year 2012.

Free cash flow was a source of nearly $1.6 billion for the first half of
fiscal year 2013, compared to a source of$1.3 billion for the first half of
fiscal year 2012. (For a reconciliation of free cash flow, see note 1.)

Outlook

The company raised its full year ongoing EPS guidance to $4.40 to $4.50 per
share. Full year 2013 EPS guidance on an as-reported basis is expected in the
range of $4.42 to $4.52 per share. (For a reconciliation of EPS, see note 1.)

The company affirmed its previously announced full year free cash flow
guidance of $1.8 billion to $2 billion. The company expects net cash provided
by operating activities to be $2.9 billion to $3.3 billion, and net cash
required by investing activities to be $1.1 billion to $1.3 billion for fiscal
year 2013. (For a reconciliation of free cash flow, see note 1.)

Seeds and Genomics Segment Detail

($ in      Net Sales                               Gross Profit
millions)
           Second Quarter      Six Months          Second Quarter      Six Months
Seeds and  2013      2012      2013      2012      2013      2012      2013      2012
Genomics
Corn Seed
and        $ 3,280   $ 2,816   $ 4,419   $ 3,711   $ 2,083   $ 1,847   $ 2,769   $ 2,378
Traits
Soybean
Seed and   677       689       908       931       395       443       513       616
Traits
Vegetable  199       215       355       372       106       85        189       166
Seeds
Cotton
Seed and   60        66        245       260       44        47        171       182
Traits
All Other
Crops      130       138       174       184       71        69        82        65
Seeds and
Traits
TOTAL
Seeds and  $ 4,346   $ 3,924   $ 6,101   $ 5,458   $ 2,699   $ 2,491   $ 3,724   $ 3,407
Genomics



($ in millions)                       Earnings Before Interest & Taxes (EBIT)
                                      Second Quarter       Six Months
Seeds and Genomics                    2013       2012      2013      2012
EBIT (For a reconciliation of EBIT,   $  1,840   $ 1,699   $ 2,060   $ 1,846
see note 1.)



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

Sales in the Seeds and Genomics segment for the second quarter were $4.3
billion, an increase of $422 million over the same period last year. For the
first six months, sales for the segment are up $643 million over the same
period last year.

Monsanto's global corn business led the Seeds and Genomics segment
performance, as it expects to hit record total corn volumes in 2013. The
second quarter results were driven in part by the conclusion of a successful
and record second season in Brazil where the company continued to achieve
strong demand for its latest corn products. The U.S. corn business also drove
the results for the quarter, with the company projecting another year of
strong performance from the business driven by the positive mix improvement
across its corn portfolio. The company is on track to reach the high end of
its 36 million to 38 million acre target range for its Genuity^® reduced
refuge family.

The current and emerging opportunities in the company's global soybean
business complement the global corn business. In the United States, the
company has achieved strong results year-to-date, with the positive order book
and shipments positioning the company well to deliver to the high end of its
39 million to 41million acre target range for its Genuity^® Roundup Ready 2
Yield^® platform. This performance comes as the company prepares to enter the
next phase of innovation in its soybean platform, including the addition of
both Roundup Ready 2 Xtend^™ and Intacta RR2 PRO^™ soybeans. ^ The company
noted that new results from its second year of Intacta RR2 PRO^™ Ground
Breakers^® on-farm field trials in Brazil have demonstrated a better than 4
bushel per acre yield advantage against first-generation Roundup Ready^®
soybeans at more than 1,000 locations, double the number of locations from its
2012 Ground Breakers^® on-farm field trials in Brazil.

Agricultural Productivity Segment Detail

($ in        Net Sales                            Gross Profit
millions)
              Second Quarter    Six Months         Second Quarter  Six Months
              2013      2012    2013      2012      2013    2012    2013    2012
Agricultural  $ 1,126   $ 824   $ 2,310   $ 1,729   $ 371   $ 214   $ 743   $ 394
Productivity
TOTAL
Agricultural  $ 1,126   $ 824   $ 2,310   $ 1,729   $ 371   $ 214   $ 743   $ 394
Productivity



($ in millions)                        Earnings Before Interest & Taxes (EBIT)
                                       Second Quarter          Six Months
Agricultural Productivity              2013        2012        2013    2012
EBIT (For a reconciliation of EBIT,    $  256      $  82       $ 526   $ 164
see note 1.)
Unusual Items Affecting EBIT:
EBIT from Discontinued Operations      $  6        $  11       $ 17    $ 11
Nitro Claims Settlement                $  —        $  (44)     $ —     $ (44)



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

Net sales in the second quarter of fiscal 2013 for Monsanto's Agricultural
Productivity segment increased $302 million over the same period last year,
reflecting the continued benefit of a favorable marketplace environment. The
company  remains focused on its established Roundup^® strategy.

Webcast Information
In conjunction with this announcement, Monsanto will hold a conference call at
8:30 a.m. central time (9:30a.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 website at
www.monsanto.com/investors or by visiting
http://edge.media-server.com/m/p/pbzn6osi/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
website for three weeks. Monsanto publishes details on upcoming webcasts on
this website in both the Presentation and Financial Reports section and the
Calendar of Events section. Investors should look to this site as the source
of information on future investor conference webcasts. The site includes a
calendar of upcoming investor events, details on accessing scheduled webcasts
and information from previous investor events.

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; 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, Genuity, Roundup, Roundup
Ready 2 Yield, Roundup Ready 2 Xtend, Intacta RR2 PRO and Ground Breakers are
trademarks of Monsanto Company and its wholly-owned subsidiaries.

Monsanto Company
800 North Lindbergh Blvd
St. Louis, Missouri 63167
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          Six Months Ended
Operations
                        February28,  February29,  February28,  February29,
                        2013          2012          2013          2012
Net Sales               $   5,472     $   4,748     $   8,411     $   7,187
Cost of Goods Sold      2,402         2,043         3,944         3,386
Gross Profit            3,070         2,705         4,467         3,801
Operating Expenses:
Selling, general and
administrative          598           543           1,140         1,043
expenses
Research and            360           353           706           704
development expenses
Total Operating         958           896           1,846         1,747
Expenses
Income From Operations  2,112         1,809         2,621         2,054
Interest Expense        35            47            86            100
Interest Income         (27)          (20)          (50)          (38)
Other Expense, Net      22            37            39            43
Income from Continuing
Operations Before       2,082         1,745         2,546         1,949
Income Taxes
Income Tax Provision    603           540           725           610
Income from Continuing
Operations Including
Portion Attributable    $   1,479     $   1,205     $   1,821     $   1,339
to Noncontrolling
Interest
Discontinued
Operations:
Income from Operations
of Discontinued         6             11            17            11
Businesses
Income Tax Provision    2             4             6             4
Income on Discontinued  4             7             11            7
Operations
Net Income              $   1,483     $   1,212     $   1,832     $   1,346
Less: Net Income
Attributable to         —             1             10            9
Noncontrolling
Interest
Net Income
Attributable to         $   1,483     $   1,211     $   1,822     $   1,337
Monsanto Company
EBIT (see note 1)       $   2,096     $   1,781     $   2,586     $   2,010
Basic Earnings per
Share Attributable to
Monsanto Company:
Income from Continuing  $   2.77      $   2.25      $   3.39      $   2.49
Operations
Income on Discontinued  0.01          0.02          0.02          0.01
Operations
Net Income
Attributable to         $   2.78      $   2.27      $   3.41      $   2.50
Monsanto Company
Diluted Earnings per
Share Attributable to
Monsanto Company:
Income from Continuing  $   2.73      $   2.23      $   3.35      $   2.46
Operations
Income on Discontinued  0.01          0.01          0.02          0.01
Operations
Net Income
Attributable to         $   2.74      $   2.24      $   3.37      $   2.47
Monsanto Company
Weighted Average
Shares Outstanding:
Basic                   534.8         534.4         534.8         534.9
Diluted                 540.9         540.5         540.9         540.9



Monsanto Company

Selected Financial Information

(Dollars in millions, except per share amounts)

Unaudited
Condensed Statements of Consolidated Financial    As of          As of
Position
                                                  Feb. 28, 2013  Aug. 31, 2012
Assets
Current Assets:
Cash and cash equivalents (variable interest      $  4,443       $  3,283
entity restricted - 2013: $58 and 2012: $120)
Short-term investments                            310            302
Trade receivables, net (variable interest entity  2,219          1,897
restricted - 2013: $132 and 2012: $52)
Miscellaneous receivables                         638            620
Deferred tax assets                               658            534
Inventory, net                                    3,095          2,839
Other current assets                              171            183
Total Current Assets                              11,534         9,658
Property, Plant and Equipment, Net                4,400          4,365
Goodwill                                          3,519          3,435
Other Intangible Assets, Net                      1,220          1,237
Noncurrent Deferred Tax Assets                    542            551
Long-Term Receivables, Net                        255            376
Other Assets                                      609            602
Total Assets                                      $  22,079      $  20,224
Liabilities and Shareowners' Equity
Current Liabilities:
Short-term debt, including current portion of     152            36
long-term debt
Accounts payable                                  751            794
Income taxes payable                              430            75
Accrued compensation and benefits                 372            546
Accrued marketing programs                        1,020          1,281
Deferred revenues                                 756            396
Grower production accruals                        239            194
Dividends payable                                 201            200
Customer payable                                  7              14
Miscellaneous short-term accruals                 781            685
Total Current Liabilities                         4,709          4,221
Long-Term Debt                                    2,054          2,038
Postretirement Liabilities                        526            543
Long-Term Deferred Revenue                        187            245
Noncurrent Deferred Tax Liabilities               410            313
Long-Term Portion of Environmental and            217            213
Litigation Reserves
Other Liabilities                                 518            615
Monsanto Shareowners' Equity                      13,240         11,833
Noncontrolling Interest                           218            203
Total Shareowners' Equity                         13,458         12,036
Total Liabilities and Shareowners' Equity         $  22,079      $  20,224
Debt to Capital Ratio:                            14         %   15         %



Monsanto Company

Selected Financial Information

(Dollars in millions, except per share amounts)

Unaudited
Statements of Consolidated Cash Flows             Six Months Ended
                                                  Feb. 28, 2013  Feb. 29, 2012
Operating Activities:
Net Income                                        $   1,832      $   1,346
Adjustments to reconcile cash provided by
operating activities:
Items that did not require (provide) cash:
Depreciation and amortization                     305            311
Bad-debt expense                                  10             (8)
Stock-based compensation expense                  49             72
Excess tax benefits from stock-based              (47)           (26)
compensation
Deferred income taxes                             52             (33)
Equity affiliate income, net                      (2)            (3)
Net gain on sales of a business or other assets   (14)           (2)
Other items                                       48             65
Changes in assets and liabilities that provided
(required) cash, net of acquisitions:
Trade receivables, net                            (196)          (265)
Inventory, net                                    (261)          (356)
Deferred revenues                                 293            445
Accounts payable and other accrued liabilities    (204)          142
Restructuring cash payments                       —              (7)
Pension contributions                             (24)           (33)
Other items                                       16             24
Net Cash Provided by Operating Activities         1,857          1,672
Cash Flows Provided (Required) by Investing
Activities:
Purchases of short-term investments               (320)          (429)
Maturities of short-term investments              312            429
Capital expenditures                              (261)          (239)
Acquisitions of businesses, net of cash acquired  (79)           (113)
Technology and other investments                  (48)           (56)
Other investments and property disposal proceeds  95             6
Net Cash Required by Investing Activities         (301)          (402)
Cash Flows Provided (Required) by Financing
Activities:
Net change in financing with less than 90-day     142            (8)
maturities
Short-term debt proceeds                          1              9
Short-term debt reductions                        (29)           (17)
Long-term debt proceeds                           16             —
Long-term debt reductions                         (2)            (142)
Treasury stock purchases                          (327)          (299)
Stock option exercises                            136            52
Excess tax benefits from stock-based              47             26
compensation
Tax withholding on restricted stock and           (3)            (1)
restricted stock units
Dividend payments                                 (402)          (322)
Dividend payments to noncontrolling interests     (1)            (71)
Proceeds from noncontrolling interests            —              101
Net Cash Required by Financing Activities         (422)          (672)
Effect of Exchange Rate Changes on Cash and Cash  26             (47)
Equivalents
Net Increase in Cash and Cash Equivalents         1,160          551
Cash and Cash Equivalents at Beginning of Period  3,283          2,572
Cash and Cash Equivalents at End of Period        $   4,443      $   3,123



Monsanto Company
Selected Financial Information
(Dollars in millions)
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 Company.



                         Three Months Ended            Six Months Ended
                         Feb. 28, 2013  Feb. 29, 2012  Feb. 28, 2013  Feb. 29,
                                                                      2012
EBIT – Seeds and         $   1,840      $   1,699      $   2,060      $ 1,846
Genomics Segment
EBIT – Agricultural      256            82             526            164
Productivity Segment
EBIT– Total              2,096          1,781          2,586          2,010
Interest Expense, Net    8              27             36             62
Income Tax               605            543            728            611
Provision^(A)
Net Income Attributable  $   1,483      $   1,211      $   1,822      $ 1,337
to Monsanto Company



    Includes the income tax provision from continuing operations, the income
(A) tax benefit (provision) on noncontrolling interest, and the income tax 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     Three     Six Months  Six Months
                                    Months    Months    Ended       Ended
                       2013         Ended     Ended
                                                        Feb. 28,    Feb. 29,
                       Guidance     Feb. 28,  Feb. 29,  2013        2012
                                    2013      2012
Diluted Earnings per   $4.42-$4.52  $  2.74   $  2.24   $  3.37     $  2.47
Share
Income on
Discontinued           (0.02)       (0.01)    (0.01)    (0.02)      (0.01)
Operations
Nitro Claims           —            —         0.05      —           0.05
Settlement
Diluted Earnings per
Share from Ongoing     $4.40-$4.50  $  2.73   $  2.28   $  3.35     $  2.51
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      Six Months Ended
                                 2013 Guidance    Feb. 28, 2013  Feb. 29, 2012
Net Cash Provided by Operating $ 2,900-3,300      $   1,857      $   1,672
Activities
Net Cash Required by Investing   (1,100)-(1,300)  (301)          (402)
Activities
Free Cash Flow                 $ 1,800-2,000      1,556          1,270
Net Cash Required by Financing   N/A              (422)          (672)
Activities
Effect of Exchange Rate
Changes on Cash and Cash         N/A              26             (47)
Equivalents
Net Increase in Cash and Cash    N/A              1,160          551
Equivalents
Cash and Cash Equivalents at     N/A              3,283          2,572
Beginning of Period
Cash and Cash Equivalents at     N/A              $   4,443      $   3,123
End of Period



SOURCE Monsanto Company

Website: http://www.monsanto.com
 
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