Monsanto Chairman Confirms 1999-2002 Performance Targets
NEW YORK, May 3 /PRNewswire/ -- In a meeting with financial analysts and
investors here today, Monsanto Company (NYSE: MTC) Chairman and Chief
Executive Officer Robert B. Shapiro said the company expects to achieve
performance targets from 1999 through 2002 that include delivering growth in
earnings before interest, taxes, depreciation and amortization (EBITDA) at an
18 percent to 25 percent compound annual growth rate (CAGR) and growth in
earnings per share (EPS) at a 25 percent to 30 percent CAGR. Plans also are
in place to lower the total debt to total capitalization ratio to the mid-30s
range by the end of 2002.
Shapiro also noted he expects second-quarter earnings to exceed earlier
projections and full-year 1999 earnings to be closer to those reported in 1998
than originally anticipated. He attributed outstanding early sales results
from the launch of Celebrex arthritis treatment, now the most successful new
pharmaceutical product ever launched in the United States, to the revised
projections. Celebrex also has been approved in eight markets outside the
United States. Additionally, Shapiro credited continued growth in Monsanto's
agricultural business -- both Roundup herbicide and crops developed through
biotechnology -- to the company's strong start this year.
"We're dedicated to creating growth from our strengths in the life
sciences while focusing on key operational measures," Shapiro added.
Specifically, he said, Monsanto plans to deliver on short- and long-term goals
by rapidly commercializing new products; aggressively integrating its recent
seed company acquisitions; eliminating expenses that are not essential to the
core strategy; and improving the management of working capital.
Monsanto previously had announced its plan to divest certain businesses
that are no longer critical to its life sciences strategy. Since November
1998, the company has indicated it intends to sell Stoneville Pedigreed Seed
Co. and its algins business; has signed a definitive agreement to sell its NSC
Technologies business; and has completed divestitures of the Ortho lawn-and-
garden business and the Wellbridge health and fitness business. Monsanto
Chief Financial Officer Gary L. Crittenden said that the company now is
projecting gross proceeds from the sale of non-strategic assets in the $1.5
billion to $2 billion range, including those assets sales that were recently
completed or announced. This projection is up from the company's earlier
estimate of asset sales of roughly $1 billion.
Monsanto is a life sciences company, committed to finding solutions to the
growing global needs for food and health by sharing common forms of science
and technology among agriculture, nutrition and health. The company's 31,800
employees worldwide make and market high-value agricultural products,
pharmaceuticals and food ingredients.
Notes to editors: Celebrex and Roundup are trademarks owned or licensed
by Monsanto Company and its subsidiaries.
Certain statements made in the news release, including those relating to
the company's future performance, and business and financial plans, are
forward-looking statements. These forward-looking statements are based on
current expectations, currently available information and assumptions that the
company believes to be reasonable. However, forward-looking statements
necessarily involve risks and uncertainties and actual results may differ
materially from those suggested. Factors that could cause actual results to
differ materially from those anticipated include but are not limited to the
economic, competitive, governmental, technological, business, financial and
other factors identified in Monsanto's 10-K filing with the Securities and
Exchange Commission.
SOURCE Monsanto Company
Web Site: monsanto.com |
