2:00PM New York—Monsanto Co. first quarter profit surges 184%, company lift earnings guidance.

Monsanto Co (MON: chart) today reported first quarter net income jumped 184% to $256 million compared with $90 million reported a year ago on stronger corn seeds and herbicide sales in the U.S., Latin America, and Europe.

Revenue climbed 36% to $2.1 billion in the fiscal first quarter 2008 ending on November 30th from $1.54 billion a year ago.

For the quarter, cumulative seed and genomics sales rose 22.9% to $836 million from $680 million in the year-ago quarter.

Agricultural sales leapt 46.7% to $1.26 billion against $859 million reported a year earlier.

Monsanto said ongoing earnings surged 187.5% to 46 cents per share from 16 cents per posted in the prior year period.

Analysts surveyed by Thomson Financial had forecast per share earnings of 35 cents on revenues of $1.87 billion.

Monsanto stock (MON: chart), a global seed manufacturing leader, gained 9.3% or $10.34 to $121.82.

Gross profit, as a percentage of sales gained to 50% from 44% previously, as expenses declined to 22% from 25% of sales.

First quarter earnings growth was driven by stronger sales of Roundup agricultural herbicides in Brazil, Argentina and Europe and stronger adoption of its seed and trait technologies in Brazil and Argentina, said Monsanto.

During the quarter, Monsanto''s U.S. corn business also realized strong early orders for the company''s corn products - including its triple-trait technology which offers farmers both above-the-ground and below-the-ground insect protection, as well as weed control flexibility.

Cash flows in the first quarter rose to $996 million from $600 million in the first quarter 2006 while cash outflows amounted to $256 million against $67 million a year ago.

At the end of the quarter, free cash flow was $740 million compared with $533 million from a year ago.


Monsanto''s full-year 2008 earnings per share is now expected to be in the range of $2.50 to $2.60, excluding the impact of Solutia''s emergence from bankruptcy, both on a reported and ongoing basis.

The company also announced that it now expects that its free cash flow guidance for fiscal year 2008 will be higher even as it expects higher capital expenditures in fiscal year 2008. Strong demand for the company''s corn seed products pulled forward the capital expenditures at its North American corn seed manufacturing facilities which had been previously announced as part of its two-year $610 capital expenditure plan.

In addition, the company now expects its 2007 free cash flow will be a use of about $60 million, compared with its previous view of a use of $250 million to $200 million, reflecting the cash effect of Monsanto''s $1.5 billion acquisition of Delta and Pine Land Co. as well as the receipt of $317 million for the sale of the Stoneville and NexGen cottonseed businesses.

The company is also forecasting that its triple-stack product could be planted on 25-to-27 million acres in the United States, up 50% on prior year. Monsanto targets that its DEKALB corn seed brand in the U.S. could realize an increase of 2-to-3 percentage points, up from its previously announced range of 1-to-2 points.

Over the past 52 weeks Monsanto stock has traded in the range $49.10 to $116.25.

They also expect second quarter earnings to rise to $1.28 per share on revenues of $3.1 billion.