SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURTIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 4, 1999 (May 3, 1999)
MONSANTO COMPANY
----------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 1-2516 43-0420020
----------------------------------------------------------------------------
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
800 North Lindbergh Boulevard
St. Louis, Missouri 63167
---------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (314) 694-1000
<PAGE>
ITEM 5. OTHER EVENTS
On May 3, 1999, Monsanto Company (the "Company") issued a press release
announcing certain performance targets discussed in a meeting with financial
analysts and investors. A copy of the press release issued by the Company is
filed as an exhibit hereto and is incorporated by reference herein.
Additional information discussed at the meeting will be available on the
Company's web site at http://www.monsanto.com.
EBIT (earnings before interest expense and income taxes) and EBITDA (earnings
before interest expense, income taxes, depreciation and amortization, and
excluding unusual charges) are used as financial performance measures in the
attached press release and in the materials on the Company's web site. For
Monsanto's business segments, EBIT also excludes the effects of unusual charges.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits. The following exhibit is filed as part of this report:
99.1 Press release dated May 3, 1999, issued by Monsanto Company
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Dated: May 4, 1999
MONSANTO COMPANY
By: /s/ Gary L. Crittenden
-----------------------------------
Name: Gary L. Crittenden
Senior Vice President, Chief
Financial Officer
(Principal Financial Officer)
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description
99.1 Press release, dated May 3, 1999, issued by Monsanto Company
Exhibit 99.1
Immediately
Scarlett Lee Foster (314-694-2883)
Lori J. Fisher (314-694-8535)
MONSANTO CHAIRMAN CONFIRMS 1999-2002 PERFORMANCE TARGETS
NEW YORK, May 3, 1999 - In a meeting with financial analysts and
investors here today, Monsanto Company 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.
- more -
<PAGE>
- 2 -
"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.
-oOo-
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.
