Monsanto Company net sales for the fiscal year 2016 second quarter decreased over the prior year’s Q2 to approximately $4.5 billion.
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Gross profit for the quarter also decreased over the prior year period to approximately $2.6 billion. For the first six months of fiscal year 2016, net sales were approximately $6.8 billion and gross profit was approximately $3.5 billion.
Selling, general and administrative costs were $586 million and research and development expenses were $340 million for the second quarter of fiscal year 2016.
The company's fiscal year 2016 second quarter EPS was $2.41 on an as-reported basis and $2.42 on an ongoing basis. On an as-reported basis, second quarter 2016 EPS was down 17 percent, while ongoing second quarter 2016 EPS was essentially in line with the prior year period on a currency neutral basis.
EPS for the first six months of fiscal year 2016 was $1.80 on an as-reported basis and $2.25 on an ongoing basis.
For the first half of fiscal year 2016, net cash provided by operating activities was a source of approximately $1.4 billion, compared to approximately $1.5 billion the same period last year.
Net cash required by investing activities for the first half of fiscal year 2016 was $483 million, compared to $532 million for the same period of fiscal year 2015. Net cash required by financing activities for the first half of 2016 was approximately $3.5 billion, compared to net cash required of $406 million for the same period of fiscal year 2015.
Free cash flow was a source of $906 million for the first half of fiscal year 2016, compared to a source of $986 million for the first half of fiscal year 2015.
The company remains diligent in its capital allocation approach with the closure of its $3 billion ASR agreements in the second quarter of fiscal year 2016.
Monsanto updated its fiscal year 2016 as-reported EPS guidance to be in the range of $3.72 to $4.48 per share, primarily due to a change in the expected timing for the accounting of restructuring expense.
The company confirmed ongoing EPS guidance in the range of $4.40 to $5.10 per share. Monsanto’s guidance incorporates the anticipated continuation of several global and industry headwinds, including the expected $0.90 to $1.00 of currency headwinds. ■