CHICAGO (Reuters) - Monsanto Co (N:MON) on Tuesday confirmed earlier guidance that its fiscal first quarter 2016 is expected to show an earnings-per-share loss in the 23-to-33 cent range, amid continued pricing weakness in glyphosate, fewer South American corn acres being planted and restructuring costs.
Market consensus has been for the company's fiscal quarter ending Nov. 30 to have an earnings-per-share (EPS) gain of 6-cents, according to market analysts.
Monsanto said Kerry Preete, its executive vice president of global strategy, will tell investors at the Morgan Stanley (N:MS) Global Chemicals & Agriculture Conference on Tuesday that Monsanto expects to achieve ongoing EPS of $5.10 to $5.60 in fiscal year 2016.
The world's leading seed company said it continues to project free cash flow in the range of $1.6 billion to $1.8 billion for fiscal year 2016.
Also, the company's EPS on an as-reported basis now is updated to reflect additional estimated restructuring charges, the company said in its statement.
"These additional estimated charges are early estimates for the cost of the supplemental phase of restructuring actions, which, in combination with cost savings initiatives, is now expected to generate up to $200 million of savings, bringing the total estimated savings to $500 million by the end of fiscal year 2018," the company said.
Preete also is expected to say Monsanto now expects EPS on an as-reported basis to be $4.00 to $4.66 in fiscal year 2016.
The company's statement can be found here: http://news.monsanto.com/press-release/corporate/monsanto-executive-addresses-investors-morgan-stanley-global-chemicals-agric