Monsanto Reports Gains in EPS Growth

11:31AM Oct 03, 2012
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Monsanto Company (MON) today announced it concluded fiscal year 2012 with ongoing earnings per share (EPS) growth of 25%, and added that it is well positioned to attain mid-teens ongoing EPS 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 they say reinforces Monsanto's long-standing yield advantage even in one of the most difficult growing seasons on record.

"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."

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% 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.

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.

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.

MON has trended higher since finding support at 70.00 in mid-May 2012. At present trading softer, down 1.43 from the morning's open at 90.57 - currently 89.14 - (Noon CT).

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