Monsanto predicts $1.2B profit from seeds business

Monsanto Co. expects to generate $1.2 billion in gross profit for its seeds and traits business in its 2005 fiscal year, the company said Tuesday.

Hugh Grant, chairman, president and chief executive, said the growth of the seeds and traits business will be come more pronounced and more important to the overall growth of the company as Monsanto becomes primarily a seeds and traits company. Grant and other Monsanto executives made the statements at an investor conference.
"The seeds and traits business represents the future of Monsanto, both in terms of our business offerings and growth opportunities," Grant said. "With the gross profit for the seeds and traits business surpassing that of our Roundup herbicide franchise this fiscal year, the accelerated growth in our seeds and traits will drive our business in the next few years."
Carl Casale, executive vice president of North America Commercial Operations, said one of the most important growth areas is increased use of the company's biotech traits as well as increased use of seed with multiple traits, such as YieldGard Plus corn, which protects against the corn borer and corn rootworm.
Casale said the potential U.S. market for its Roundup Ready corn is likely to reach more than 50 million acres, much higher than it had earlier predicted.
Terry Crews, chief financial officer, said the company expects to have close to $100 million in free cash flow for its 2003 calendar year, up from its $50 million to $100 million guidance earlier this year.

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