Courtesy of Benzinga.
With seed selling seasons for North and South America now complete, Monsanto Company (NYSE: MON) today cited continued strong third-quarter sales as the company again increased fiscal-year 2012 earnings guidance. Speaking to investors at the Sanford Bernstein Strategic Decisions Conference in New York, Monsanto’s Chairman, President and Chief Executive Officer Hugh Grant said he expects year-over-year ongoing earnings to grow up to 25 percent in fiscal year 2012, ahead of continued strong growth in fiscal year 2013.
Grant said the company is raising 2012 earnings per share guidance to the range of $3.65 to $3.70 on an ongoing basis and $3.73 to $3.78 on an as-reported basis.
Reflecting the increased full-year expectation and strong performance through the key selling seasons, the company projects third-quarter EPS of $1.57 to $1.62 on an ongoing basis and $1.69 to $1.74 on an as-reported basis. As-reported EPS also reflects a discrete tax adjustment related to the resolution of a legacy tax matter. Grant said performance also is reflected in the company’s full-year free cash flow, as it narrowed its guidance to $1.7 billion to $1.8 billion, the high end of the previous range.
The company expects net cash provided by operating activities to be $2.6 billion to $2.8 billion, and net cash required by investing activities to be $900 million to $1 billion for fiscal year 2012. (For a reconciliation of free cash flow, see note 1.)
Grant also indicated Monsanto expects continued growth in 2013 after greater than 20 percent ongoing earnings growth achieved in 2011 and expected for 2012, with mid-teens ongoing earnings growth for fiscal year 2013 projected from the higher base of $3.65 to $3.70 announced today.
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