Monsanto Boosts Full-Year Profit View on ‘Better-Than-Expected’ Roundup, Corn and Soybean Sales
31 May 2012 ST. LOUIS, Mo. – A strong seeds and traits business, on top of better-than-expected sales of Roundup and other herbicides in North and South America, led Monsanto to raise its full-year profit outlook again this week.
Speaking to investors at the Sanford Bernstein Strategic Decisions Conference in New York, Monsanto Chairman and CEO Hugh Grant said he expects ongoing earnings to increase up to 25% for the year, as it built momentum from an early spring and planted more acres of corn and soybeans in the US, and saw higher than anticipated corn sales in Brazil.
“Now that we have a more complete view on the greater planted acres from the United States and Europe, it is clear our performance reflects an even greater component of business strength and momentum versus timing of a historically early selling and planting season,” Grant said.
More acreage and growth in its core business in Eastern Europe also helped drive stronger-than-expected results.
Grant said the company is raising 2012 earnings per share guidance to between $3.73 to $3.78 on a reported basis, and between $3.65 and $3.70 on an ongoing basis. In 2013, Grant sees earnings growth in the mid-teens on a percentage basis.
It expects third-quarter EPS of $1.57 to $1.62 on an ongoing basis and $1.69 to $1.74 on an as-reported basis, reflecting a tax adjustment from resolving legacy tax matter.
In Monsanto’s key US market, Grant indicated that as part of the robust US season, it now projects acres for 2012 of its Genuity reduced-refuge corn family to exceed the company’s initial target and Genuity Roundup Ready 2 Yield soybeans to achieve the high end of its expected range.
Looking toward 2013, Grant said Monsanto will continue expanding its core businesses in the US and accelerate its corn business in Latin America, as well as benefit from growth in other international markets. He also cited the future growth opportunity from new products and platforms emerging from the company’s research and development efforts.
Source: Monsanto, Edited by Jaclyn Sindrich, Managing Editor
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