CEO Hugh Grant Discusses Contributions of Genuity™ SmartStax™ and Genuity™ Roundup Ready 2 Yield®, Focus on Disciplined Spending and Returning Value to Shareowners
ST. LOUIS, Sept. 15, 2009 /PRNewswire-FirstCall/ -- Monsanto Company (NYSE: MON) is sharing unprecedented value created on farm with both growers and investors as the company recommits to its 2012 objectives, Chairman and Chief Executive Officer Hugh Grant will say today in prepared remarks.
Grant, speaking at the Credit Suisse 22nd Annual Chemical and Ag Science Conference, will say the company remains on target to help farmers benefit with improved seeds and technology and consequently more than double 2007 company gross profit by 2012 as results from the robust R&D pipeline reach farmers' fields and fuel continual seeds and genomics growth. Also, he will address the company's disciplined spending and cash flow management and will explain how Genuity™ Roundup Ready 2 Yield® soybeans and Genuity™ SmartStax™ corn deliver increased value on the farm and are expected to create approximately one-third of the company's gross profit growth to 2012.
"We continue to see the benefits both to growers and our company as we fund and bring to marketplace the innovation that has helped us develop leading seeds and technologies for our customers even as we compress our spending in other areas of the business," Grant will explain. "Simply put, our growth is driven by growers and the decisions they make each year. That's why it's critical that we continue to support the robust pipeline and products that help us and the hundreds of licensees of our technologies to win their business year after year. Even as we reset the business in 2010, this wave of new platform-changing products keeps us on track to meet our promise to farmers and to deliver on our shareowner commitments for 2012."
Grant will cite the anticipated contribution of new seed platforms such as Genuity™ SmartStax corn and Genuity™ Roundup Ready 2 Yield soybeans. Both are slated to enter the marketplace with record-setting product launches in 2010, and are expected to significantly enhance farmers' productivity and profitability. The expected higher yield potential for both products - 5 percent to 10 percent for Genuity™ SmartStax and more than 7 percent for Genuity™ Roundup Ready 2 Yield - will boost on-farm revenue and improve farmers' productivity per acre.
"As we upgrade the technology platform on each acre of corn, soybeans and cotton, we create more yield - and more profit - for our farmer customers," Grant will say. "As a result of delivering benefits on the farm and to our many seed company licensees, we expect our U.S. seed business alone to generate more gross profit in 2012 than our entire seed portfolio did around the world in 2009."
Genuity™ SmartStax is unparalleled in offering whole-farm yield improvement, refuge reduction and broader insect spectrum control, and its platform will be the foundation for future trait launches, starting with drought-resistance, Grant will say. Genuity™ SmartStax is on track to launch next year on three million to four million acres, representing the biggest and broadest biotech corn launch in history.
Monsanto also is targeting seven million to eight million acres in 2010 with Genuity™ Roundup Ready 2 Yield Soybeans, which provide higher yields in the range of a decade's worth of genetic gain in a single new product, Grant will say.
Grant will reiterate the importance of the company's current restructuring efforts, which are expected to reduce future costs by $220 million to $250 million annually, with approximately one-third of that range realized in fiscal year 2010. The full benefit of the savings is expected to be realized beginning in fiscal year 2011.
He added that the company will continue to emphasize the focus and discipline in cash management that allows it to maintain a strong balance sheet and solid cash position to invest for growth and to return value to shareowners through dividends and share repurchases.
Presentation slides and a simultaneous audio webcast of Grant's presentation may be accessed by visiting the company's web site at www.monsanto.com/investors. Following the live broadcasts, Monsanto will archive the presentation slides and replays of the webcasts at the company's web site.
