Monsanto Reaffirms Ongoing Earnings Outlook of Greater Than 20 Percent Growth

27 June 2013 --- Monsanto Company has announced third-quarter financial results and reaffirmed its fiscal year 2013 guidance for a third consecutive year of greater than 20 percent growth in ongoing earnings. Company executives also noted that the continued strength and global scope of its core business, coupled with new products and upgrades, are expected to propel the company to mid-teens ongoing earnings growth in fiscal year 2014.

For the first nine months, net sales increased $1.3 billion over the prior year period to approximately $12.7 billion. Monsanto's year-to-date performance has been driven by the strength across its global portfolio, including overall growth in the company's global corn business and continued strength in the Agricultural Productivity segment.

Net sales for the quarter were $4.2 billion. As expected, the third quarter results reflect the decreased year-over-year contribution from the Brazil soybean business, a decrease in overall planted cotton acres and continued effect of higher production costs from the 2012 drought.

Operating expenses were up $11 million in the third quarter compared to the same period in the prior year. In the three-month comparison, selling, general and administrative (SG&A) expenses decreased slightly to $632 million. Quarterly research and development (R&D) expenses were up 5 percent to $392 million compared to the prior year period.

The company's third quarter earnings per share (EPS) was $1.66 on an ongoing and $1.68 on an as-reported basis. EPS for the first nine months of fiscal year 2013 was $5.01 on an ongoing basis and $5.05 on an as-reported basis.

The company's strong cash position continued in the third quarter. For the first nine months of fiscal year 2013, cash flow from operations was a source of $786 million compared with a source of $853 million in the first nine months last year. Net cash required by investing activities for the first nine months of fiscal year 2013 was $387 million, compared to $542 million for the same period of fiscal year 2012. Net cash required by financing activities for the first nine months of 2013 was $739 million, compared to net cash required of $1 billion for the same period of fiscal year 2012. Free cash flow was a source of $399 million for the first nine months, compared to a source of $311 million for the same period last year.

Earlier this month, the company announced that its board of directors had authorized a new share repurchase program, effective July 1, 2013, for up to $2 billion of the company's common stock over a three-year period.

The company reaffirmed 2013 earnings per share guidance in the range of $4.50 to $4.55 on an ongoing basis, with mid-teens ongoing earnings growth anticipated for fiscal year 2014. The company expects 2013 earnings per share on an as-reported basis to be in the range of $4.54 to $4.59. The company also confirmed its full-year free cash flow guidance for fiscal year 2013 of $1.8 billion to $2 billion. 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 $1 billion to $1.1 billion for fiscal year 2013.