Monsanto Crop Protection Sales Rise, Outperforms Seeds and Traits
28 June 2013 Monsanto Co. posted a modest 3% drop in third-quarter profit, hit by higher production costs due to the 2012 drought, lower Brazilian soybean contribution and decreasing planted cotton acreage, but backed its full-year outlook.
Its Agricultural Productivity segment, which includes crop protection and lawn-and-garden herbicide products, sharply outperformed its much larger Seeds and Genomics unit, recording a 9.4% increase in sales to $1.19 billion. Seeds and Genomics sales slipped to $3.05 billion from $3.13 billion in the year-ago quarter. Its corn business continues to be strong, with record volumes projected for the third straight year.
“This is a year where the strength of our global portfolio has really been highlighted, and with the continued strength of our larger, more global business, we’re on track to deliver more than 20% ongoing earnings growth in fiscal year 2013 and in a very strong position to build on that success with continued growth next year,” said Hugh Grant, chairman and chief executive officer. “Our optimism reflects the expanding opportunity we see to unlock successive layers of growth next year and beyond as our focus on farmers, new product platforms and operating efficiency combine to build continued momentum.”
Companywide, net sales for the quarter were $4.2 billion, while net income was $909 million, or $1.68 per share, compared with $937 million, or $1.74 per share in the year-ago period.
It reaffirmed 2013 earnings per share guidance in the range of $4.50 to $4.55 on an ongoing basis, with mid-teens ongoing earnings growth anticipated for fiscal year 2014. The company expects 2013 earnings per share on an as-reported basis to be in the range of $4.54 to $4.59. It sees new products and global business contributing to mid-teens ongoing earnings growth in fiscal year 2014.
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