Monsanto Company (NYSE: MON) today announced that it is increasing estimates for the company's third-quarter earnings per share (EPS) and raising fiscal-year guidance as the U.S. agricultural season continues to be strong and ahead of the pace of the last several years. Both the third-quarter and the full-year results are also benefiting from a lower tax rate. Solid year-to-date performance globally, strong sales of Monsanto's seeds and traits through the U.S. planting season, and early applications of Roundup herbicide in the United States are driving business performance. As a result, for the third quarter, Monsanto now expects EPS on a reported basis to be approximately $0.90 per share and EPS for the ongoing business to be in the range of $0.85 per share.
 

With the improvement in earnings through the first nine months, the company expects earnings to break even or be a slight loss in the fourth quarter, reflecting a lower-value mix of Roundup products being purchased during the fourth quarter, including those sold in preparation for the 2005 U.S. season.
 

The company now expects EPS will be in the range of $0.79 to $0.84 on a reported basis, and $1.55 to $1.60 on an ongoing basis for the 2004 fiscal year. The previous estimate for the 2004 fiscal year was in the range of $0.70 per share on a reported basis and approximately $1.55 per share on an ongoing basis.
 

The company recently completed the sale of its European wheat and barley business, which benefited reported earnings in the third quarter by $0.09 per share after tax. The gain is the result of a higher sales value for the business than originally anticipated when Monsanto announced its intent to sell the wheat and barley business and lower-than-expected employee-related costs. This benefit will be reflected in the company's discontinued operations.
 

"The execution of our seeds and traits strategy is both driving the strong performance in this fiscal year as well as creating the foundation for future growth," said Monsanto Chairman, President and Chief Executive Officer Hugh Grant. "Initial indications in the market show a shift in the Roundup product mix that we believe will carry forward in 2005, and we anticipate will result in lower fourth-quarter 2004 earnings."
 

"Despite the expected decline in the Roundup business, we have been able to continue to increase our earnings estimates throughout the 2004 fiscal year. We still expect to achieve our compounded annual growth rate of 10 percent for EPS from ongoing business in fiscal year 2005 over our new fiscal year 2004 base."
 

Monsanto also is increasing its free cash flow guidance, reflecting reduced capital spending and working capital improvements, which, paired with the company's strong business performance, has produced better-than-anticipated cash generation. The company now expects that free cash flow will reach the $500 million level for the 2004 fiscal year, compared with previous estimates in the range of $350 million to $400 million. The company expects net cash provided by operations to be in the range of $750 million and net cash required by investing activities to be in the range of $250 million.
 

Monsanto will report its complete third-quarter earnings Wednesday, June 30.
 

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.