Monsanto expects to double gross profit by 2012

ST. LOUIS — Monsanto Co. is on track to double its gross profit by 2012, the agribusiness' chief financial officer said Tuesday.

Terry Crews will speak to investors today as part of a presentation at a conference in New York. The St. Louis-based maker of Roundup herbicides and biotech products said Crews will discuss Monsanto's strong operating cash position.

Monsanto's gross profit was $4.29 billion in 2007 and Crews expects that number to reach up to $8.5 billion by 2012. The company defines gross profit as the difference between income and the expenses directly attributed to it.

"It's a position that gives us the opportunity to make timely investments and key additions that advance our strategy, improve and extend our competitive position in the industry, and create new value for shareowners and farmers," Crews said in a statement.

Crews said the company's corn business continues to exceed expectations.

"Farmers across the United States are in the process of planting corn, and while weather conditions are always a variable with spring planting, we continue to expect another exceptional year in our corn business," Crews said.

In addition to corn, Crews said Monsanto's growth is driven by soybean, cotton and vegetable seed businesses, and by its research and development pipeline.

"In fact, of the growth drivers that are the most meaningful to the strategy in 2008, we're actually ahead of plan," he said.

Crews also cited strong share growth in the DeKalb and American Seeds Inc. brands, along with continued penetration of its triple-stack trait technology.

The company said its strong earnings growth has allowed it to increase its dividend six times since 2001, an increase of 200 percent.

Shares of Monsanto rose $1.79, or 1.5 percent, to $119.70.