|
Monsanto upbeat on 2Q
|
 |
May 3, 1999: 1:37 p.m. ET
Says it will surpass earlier expectations on success of painkiller Celebrex
|
NEW YORK (CNNfn) - The head of Monsanto Co. said Monday that the success of the company's new painkiller, Celebrex, will lead to better-than-anticipated second quarter results.
In comments for a meeting with financial analysts in New York, chairman and chief executive Robert B. Shapiro also said earnings for 1999 will be more than originally anticipated.
Shapiro said Monsanto (MTC) is on track to achieve growth targets of 18 percent to 25 percent annually through 2002 on earnings before interest, taxes, depreciation and amortization. He predicted annual earnings per share growth of at least 25 percent.
"We're dedicated to creating growth from our strengths in the life sciences while focusing on key operational measures," he said.
For the second quarter ending June 30, the consensus of analysts surveyed by First Call calls for Monsanto to earn 40 cents per diluted share, compared with 43 cents a year earlier. The First Call consensus for all of 1999 is for earnings of 93 cents a diluted share, the same figure as reported for 1998.
The revised second-quarter expectations are not surprising, given the success so far of Celebrex, said industry analyst Sergio Traversa of Mehta Partners. The drug, which treats arthritis pain, was launched in February and accounted for about a third of the company's first-quarter pharmaceutical sales.
The real test for Monsanto will be whether it can sustain the earnings growth after the initial flurry over Celebrex subsides, Traversa said. His firm has a "hold" rating on Monsanto stock over concern about its agricultural products sector.
"What the investor usually likes is the repeatability of the earnings," Traversa said. The challenge will be "to build up an earnings string that can be maintained," he said.
Monsanto chief financial officer Gary L. Crittenden said Monday that the St. Louis-based company is projecting gross proceeds from the sale of non-strategic assets to total at least $1.5 billion, up from an earlier estimate of $1 billion.
Monsanto previously has indicated it plans to sell the Stoneville Pedigreed Seed Co., and already has signed a deal to sell its NSB Technologies business. The company also has sold off its Ortho lawn and garden unit and the Wellbridge health and fitness business.
Late last month, Monsanto issued first-quarter earnings that were slightly better than expected. The company said profit fell 33 percent to $132 million, or 20 cents per diluted share, citing high interest expenses and amortization costs.
Shares in Monsanto were trading up 1/2 at 45 3/4 on the New York Stock Exchange on Monday.
|
|
|
|
|
|
Monsanto
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
