Monsanto Releases 2012 Fiscal Outlook
October 10, 2011 In fiscal year 2012, Monsanto expects to achieve mid-teens earnings growth off the 2011 EPS base for a range of $3.34 to $3.44 EPS.
The company noted that as the business in Latin America continues to ascend, it views 2012 as the first year of some structural changes to its historical earnings pattern. The first quarter, still a small quarter, is expected to see more contribution from the growth in Brazil and Argentina that would yield first-quarter ongoing and as-reported earnings per share in the range of $0.10 to $0.15 per share.
The Seeds and Genomics segment, which saw significant gross profit increase in 2011 and represents the growth area for Monsanto’s business in fiscal year 2012 and beyond, is expected to deliver both single digit percentage unit volume growth and continued mix improvement. The company expects Seeds and Genomics gross profit in the range of $5.7 billion to $5.85 billion for the year, with unit volume growth complemented by mix from both germplasm and trait upgrades globally.
Gross profit for the Agricultural Productivity segment is expected at roughly $800 million.
The company projects free cash flow in the range of $1.3 billion to $1.5 billion for fiscal year 2012. The company expects net cash provided by operating activities to be $2.2 billion to $2.5 billion, and net cash required by investing activities to be approximately $900 million to $1 billion for fiscal year 2012.
In fiscal 2012, the company expects selling, general and administrative expenses to be in the range of $2.25 billion to $2.35 billion, reflecting inflationary level increases. On a percent of sales basis, the company has reduced its SG&A spend rate over the past several years, and the 2012 range maintains that trend. The company’s research and development spend is projected at $1.4 billion to $1.45 billion.
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