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Jun. 24, 2015 Source: Monsanto news release The company reaffirmed fiscal-year 2015 ongoing earnings per share guidance at the low end of the range of $5.75 to $6.00. Full-year 2015 EPS guidance on an as-reported basis continues to be expected at the low end of the range of $5.80 to $6.05 per share. The EPS guidance takes into account continued industry headwinds for the fiscal year, ranging from the significant deterioration of several key currencies versus the U.S. dollar and low commodity prices driving reduced acres. The company also continues to track at the low end of its original free cash flow guidance of $2.0 billion to $2.2 billion, with net cash provided by operating activities expected to be $3.0 billion to $3.3 billion and net cash required by investing activities to be approximately $1.0 billion to $1.1 billion. Within its full-year guidance, Seeds and Genomics segment gross profit growth percentage for the full year is now expected to be flat year-over-year, with roughly a half a point in gross profit margin improvement. Agricultural Productivity segment gross profit is now expected to be down only slightly versus the prior year due to the agreement with Scotts Miracle Gro as an offset to the anticipated 15-to-17 percent decline in gross profit from continued softening of generic glyphosate pricing and currency headwinds. The company's fourth-quarter results are now expected to be break-even. Monsanto will continue to focus on disciplined operational spend as a hedge to the current industry macro trends. Total operating expenses for fiscal year 2015, inclusive of new platform spend, is expected to remain down in the range of 3-to-5 percent versus the prior year. Looking beyond the current year, the company anticipates the continuation of several of the industry headwinds, ranging from weakening foreign currencies to low commodity prices driving reduced acres. In light of these industry challenges, the company is developing plans to reduce its operating spending potentially in the range of $300 million to $500 million by the end of fiscal year 2017. Tweet |
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