Monsanto's Enhanced Product Strategy Creates Momentum; Industry-Leading Products Poised to Deliver for Farmers, Company

ST. LOUIS, May 5, 2010 /PRNewswire-FirstCall/ -- Monsanto Company's (NYSE: MON) enhanced product strategy will serve as the backbone of expected unit volume growth to drive its mid-teens earnings growth opportunity, Chief Financial Officer Carl Casale will tell investors today at the UBS Global Agricultural Chemicals and Seed/Biotech Conference in New York.

In discussing last month's announcement that Monsanto expects to emerge from the current fiscal year positioned for annual earnings per share growth in the mid-teen percentages, Casale will say the company's customer-centered product strategy is designed to enable volume growth through both upgrades on existing acres and by winning new customers.  Together with a new pricing approach, the company expects this to deliver a positive mix effect across Monsanto's U.S. branded corn portfolio that will increase the average gross profit per acre and improve profit margins.

"We've listened to farmers and they've spoken clearly:  they want the best-in-class technologies Monsanto delivers but they need us to minimize their risk.  We are making strong moves to address that need, which is in the best interest of our business and theirs," Casale said.  "Our strongest competitive advantage lies in our products, and when we give our products the opportunity to shine on farm, we see significant opportunity."

Industry's Leading Portfolio Creates More Farmer Choice

The lynchpin of Monsanto's product strategy revolves around offering a broader range of products and price points, supported by a pricing approach that encourages early adoption and creates significant new opportunity.  

Delivering the right technology fit for farmers will create the penetration Monsanto expects across its product line, spurring momentum and supporting unit-volume growth, Casale will say.

"The power of trial is critical, whether introducing traits or new products as we are this year," Casale will say. "The seed investment is one of the most important choices a farmer makes.  We want to enable farmers to experience what our products can do on their farms, because we're confident that when they do, they'll also see more profit potential."

The key elements of Monsanto's new product strategy are:

• Monsanto will offer the top-performing, lowest-refuge product in each segment, creating more choices for farmers.  Monsanto's corn product line-up features the industry's only reduced refuge family of products.  That family will be led by the flagship Genuity® SmartStax™, which will be deployed in the highest-yielding core of the Corn Belt, maximizing farmers' returns with elite genetics and a 5 percent refuge.  Outside of the high-yielding core, the strategy will be led by Genuity® VT Double PRO™ and Genuity® VT Triple PRO™, both delivering superior genetics and reduced refuge, maximizing plant protection and yield.
• Monsanto's industry-leading technology will be priced to support trial and adoption.  Monsanto is using a proven pricing strategy that creates the opportunity for farmers to plant its newest biotech traits on more acres while reducing the upfront risk.  This creates more price points and gives farmers the opportunity to see product performance on their farm.

Casale will note that the strategy also aligns well with Monsanto's gross margin priorities by aligning the incremental cost of goods for the company's newest technologies with the incremental value they deliver in each geographic segment.  

Operational Approach Underpins Opportunity

This refined product strategy for U.S. seeds and traits is just one of the drivers of Monsanto's business growth, Casale will say, complemented by stabilization of the Roundup® and other glyphosate-based herbicides business and growth of seeds and traits sales in Latin America.  Those factors, with the operational leverage Monsanto has achieved through its spending targets, are expected to combine to drive the company's mid-teens earnings growth beyond 2010.

"This is a complete operational plan and its successful execution will leave Monsanto well positioned for the growth we see ahead," Casale will say.  "We believe that together, our business growth and the operational leverage we've achieved across the enterprise will enable our business to generate mid-teens earnings growth, turn those earnings into cash and deliver strong return on capital."

The company's full-year 2010 ongoing EPS guidance is in the low end of the range of $3.10 to $3.30.  Full-year 2010 EPS guidance on an as-reported basis is in low end of the range of $2.85 to $3.11.  (For a reconciliation of EPS, see note 1.)

A live webcast of Casale's presentation will be available through Monsanto's web site at: http://www.monsanto.com/investors.  Following today's live broadcast set for 8 a.m. C.T., a replay of the webcast will be available on the Monsanto web site for three weeks. To access presentation slides and the simultaneous audio webcast of the presentation, visitors may need to download Windows Media Player™ prior to listening to the webcast.

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; 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.

1. Reconciliation of EPS to Ongoing EPS:  The presentations of ongoing EPS is not intended to replace net income (loss), cash flows, financial position or comprehensive income (loss), and it is not a measure of financial performance as determined in accordance with generally accepted accounting principles (GAAP) in the United States. The following table reconciles ongoing EPS to the most directly comparable financial measure calculated in accordance with GAAP. Ongoing EPS is calculated excluding certain after-tax items which Monsanto does not consider part of ongoing operations.

Contact:  Media – Kelli  Powers (314-694-4003)

SOURCE Monsanto Company