Monsanto reported agricultural productivity — or crop protection — sales totaled $931 million in the second quarter, compared with $888 million in the year-ago period. Seeds and genomics sales fell to $4.1 billion from $4.2 billion a year ago.
Net income was $1.5 billion in the quarter, or $3.27 per share, compared with $1.4 billion, or $3.09 per share year earlier.
According to Monsanto, the results were driven by improved glyphosate pricing, as well as better pricing and increased acres from INTACTA RR2 PRO soybeans, offset by decreased corn volumes from the combination of timing and expected lower planted acres in the U.S., and from reduced corn prices from continued lower commodity prices in Brazil.
“We met our acreage target for INTACTA RR2 PRO soybeans in South America, and the Roundup Ready Xtend Crop System is on a path to record trait adoption,” added Brett Begemann, president and chief operating officer for Monsanto. “In just the third year of the trait on the market, U.S. farmers are on the way to planting nearly 50 million acres of dicamba-tolerant soy and cotton in 2018, nearly doubling last season’s acreage. Based on anticipated market demand, we’re expecting 60 million acres in 2019. Farmers clearly see the value in this weed control technology, and we are eager to partner with them to successfully use this vital tool.”
With Bayer leading the regulatory process for the pending merger, the companies continue to cooperate with regulators and have seen solid progress. The number of anti-trust approvals continues to increase, most notably from the European Commission, China and Brazil, and, as a part of this process, Bayer has announced several planned divestitures. With these actions, Monsanto continues to be confident in the companies’ collective ability to secure the required approvals within the second calendar quarter of 2018 and in the time contemplated by the agreement.