Agrochemicals sales

Agrochemicals sales for the quarter reached $895 million with gross profit of $250 million. For the fiscal year, the segment delivered net sales of $3.7 billion with gross profit of $986 million, with year-over-year increases that reflect strong performance from the company's Roundup®, lawn-and-garden and selective herbicides businesses.

Seed business sales

Seeds and Genomics segment net sales were $1.2 billion for the quarter, a 10% decrease from the prior year. For the fiscal year, net sales for the Seeds and Genomics segment reached $9.8 billion, a 14% increase over the prior year.

In the United States, branded seed volume in fiscal year 2012 grew by the largest increment in three years and outpaced market expansion. In corn, the company reached 27 million planted U.S. acres for its Genuity® Reduced Refuge Family. While harvest is still in progress, the company shared some early highlights of what the 2012 U.S. corn harvest has shown to date.

In a year when average corn yields are significantly down, DEKALB® continues its historic advantage relative to competitive products. In 2012, DEKALB® is outperforming competitive products with approximately a 8 bushels per acre national yield advantage, with Monsanto's germplasm providing greater consistency in performance amidst this season's drought conditions. Results to date by region also show an advantage over competitors for DEKALB®, including approximately a 9 bushels per acre yield advantage in the Central Corn Belt and approximately a 8 bushels per acre yield advantage in the Southern Region.

Monsanto's Genuity® DroughtGard™ Hybrids system, which combines germplasm selected for its drought-tolerant characteristics, the drought-tolerant biotechnology trait and agronomic recommendations, has demonstrated strong performance in Ground Breakers? on-farm testing this season. Compared head-to-head to competitor hybrids marketed to the drought segment, DroughtGard™ Hybrids results across the Western Great Plains show approximately a 5 bushels per acre yield advantage to date.

In soybeans, the company reached a total of 32 million acres for its Genuity® Roundup Ready 2 Yield® product in the United States. The company expects the Genuity® Roundup Ready 2 Yield® platform growth to continue, targeting 39 million to 41 million acres in 2013.

Outlook

The Seeds and Genomics segment is expected to deliver gross profit in the range of $6.55 billion in 2013, with gross profit growth projected to be divided roughly evenly between the United States and international regions. Gross profit for the Agricultural Productivity segment next year is expected in the range of $1 billion.

In fiscal year 2013, the company expects selling, general and administrative expenses to be in the range of $2.55 billion. The company's research and development spend is projected in the range of $1.53 billion for fiscal year 2013.

In 2013, the company is targeting 36 million to 38 million acres for the Reduced Refuge Family. Genuity® VT Triple PRO® RIB Complete®, a convenient, single-bag refuge option, will join Genuity® SmartStax® RIB Complete® and Genuity® VT Double PRO® RIB Complete® corn blends as an additional product choice available for the 2013 season. The DroughtGard™ Hybrids system will also be introduced in 2013 in the Western Great Plains under stewardship requirements pending import approvals in key export markets.

In 2013, the company expects Latin America to again be a strong source of growth complementing the U.S. business, driven by the continued corn opportunity in Brazil and Argentina. In Argentina, the company has introduced Genuity® VT Triple PRO® corn as another product choice for farmers and expects the acceleration of the conversion of double stacks to the triple-stack product. Similarly, in Brazil, growers choosing to upgrade from single trait corn products to the first double stack, VT PRO™ 2, is also expected to accelerate. Complementing the continued strong adoption of the company's next-generation soy platform in the United States, the Intacta RR2 PRO™ soybean product is expected to be a driver of growth with expanded Ground Breakers? on-farm testing planned for 2013 as the product ramps up for commercial launch in Brazil and is introduced in other countries in coming years.

Vegetable sales, up in the fourth quarter compared to the prior year period, were down year-over-year. In 2013, the company expects the vegetable business to return to growth and continues to anticipate it elevating to its third largest crop platform in terms of gross profit in the coming years. Cotton revenue decreased year-over-year due in part to acre shifts to other crops.