Tags: Monsanto | Smaller | Loss | Revenue

Monsanto Posts Smaller Loss as Revenue Rises

Wednesday, 06 Oct 2010 08:58 AM

Agricultural products maker Monsanto Co. reported a smaller loss Wednesday for its fiscal fourth quarter than a year ago as its revenue increased.

The quarter is typically a money loser for Monsanto, which makes more of its money in the spring and summer months as farmers are ordering seed.

Monsanto has continued to struggle with its once profitable herbicide division, which is built on its popular Roundup weed-killer. A deluge of generic competition has gutted Roundup profit margins and Monsanto has restructured to compensate for the lost revenue.

It has been making a transition from being an old-line maker of herbicides and pesticides to a company increasingly dependent on developing new strains of genetically engineered crops.

The St. Louis company lost $139 million, or 26 cents a share, in the quarter ended Aug. 31. That's better than its loss of $233 million, or 43 cents a share, a year ago.

Revenue rose to $1.953 billion from $1.879 billion a year ago.

Corn seed and traits revenue rose to $424 million from $387 million during the fourth quarter last year. Soybean seeds and trait revenue rose to $103 million from $81 million during the prior year period.

Monsanto's quarterly loss was 9 cents a share from its ongoing business. Analysts had been looking for a loss of 6 cents per share after factoring in the one-time costs.

Its shares rose 98 cents, or 2 percent, to $49.50 in pre-market trading.

Net income for the full year fell to $1.128 billion from $2.133 billion a year ago. Revenue fell to $10.5 billion from $11.72 billion a year earlier.

The seeds and genomics division represented more than 70 percent of the company's net sales for the year, which offset losses from its popular herbicide Roundup.

Generic competition from China and elsewhere has gutted Roundup's profit margin, and contributed to a 10 percent decline in Monsanto's net sales for fiscal 2010.

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Agricultural products maker Monsanto Co. reported a smaller loss Wednesday for its fiscal fourth quarter than a year ago as its revenue increased. The quarter is typically a money loser for Monsanto, which makes more of its money in the spring and summer months as farmers...
Monsanto,Smaller,Loss,Revenue
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2010-58-06
Wednesday, 06 Oct 2010 08:58 AM
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