Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Monsanto Company    MON

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Monsanto Company : Monsanto 2Q Net Up 19% On Strong US Selling Season

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/04/2012 | 07:40pm CEST

--Monsanto reports 2Q earnings jump 19%

--Warm winter helps drive sales

--Corn, soybean seed net sales both increase

(Updates with comments from executive, analysts.)

 
   By Ian Berry 
   Of  
 

Monsanto Co. (MON) raised its earnings outlook for the year on strong demand for corn seed as U.S. farmers plan to plant a huge crop this spring.

The world's largest seed company said second-quarter earnings jumped 19% over a year ago, due in large part to its corn seed and traits business. Net sales in that business, which increased 17%, were buffeted by higher volumes and demand for higher-priced seeds, as well as unusually warm winter weather that fueled early seed shipments.

Federal forecasters last week projected U.S. farmers will plant the most corn acreage since 1937 to take advantage of continuing strong prices for the grain.

While Monsanto's earnings beat expectations, it was less clear to what extent the early sales in the second quarter will result in slower sales later in the year.

"How much of the great quarter is linked to timing, and how much is linked to actual performance in our business, it's difficult to measure at this point in time," Chief Financial Officer Pierre Courduroux said in a conference call with investors.

He said that earnings in the second half of the year would likely be flat versus a year ago. Still, the company was confident enough to raise its full-year earnings guidance to $3.49 to $3.54 a share, an increase of 10 cents a share.

Investor reaction was muted, as analysts said the new guidance was squarely within Wall Street expectations. Shares were recently down 1.2%, to $80.80 amid a broader market slump.

The St. Louis-based company reported increased sales across its top three businesses: corn, soybeans and agricultural productivity, which includes Roundup and other herbicides.

The company's improved seed sales are validating "a couple years of heavy lifting," Chairman and Chief Executive Hugh Grant said.

Monsanto in 2010 suffered through a backlash from farmers, who balked at the company's high initial price for its new premium corn seed, SmartStax. The problems were compounded by what was seen as a disappointing performance in the seed's first year, and the share price fell sharply.

Monsanto has since "made a conscious effort to address product choices and pricing to better connect" with customers, Grant said. Sales of the company's premium corn seed products so far this year are at the high end of expectations, he said.

Monsanto executives sound more humble than they did a couple years ago, said Mark Connelly, an analyst with CLSA. He added that Grant and other officials seem wary of building expectations too high. Rather than focusing on one particular seed for one particular region, it is emphasizing growth across geographic regions, including South America.

"Monsanto is not trying to be a one-hit wonder," Connelly said. "They are trying to convince you they have a long-term, sustainable growth story."

For the quarter ended Feb. 29, Monsanto, based in St. Louis, reported a profit of $1.21 billion, or $2.24 a share, up from a year-earlier profit of $1.02 billion, or $1.88 a share. Stripping out items like a settlement, earnings per share rose to $2.28 from $1.87 a year earlier.

Net sales rose 15%, to $4.75 billion. Analysts were looking for earnings of $2.12 a share on $4.53 billion in sales, according to a poll conducted by Thomson Reuters.

-By Ian Berry, Dow Jones Newswires; 312-750-4072; [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MONSANTO COMPANY
04/21 MONSANTO : Completes $50 Million Plant Expansion in Muscatine
04/21 MONSANTO : CTO Robb Fraley Featured in Bill Nye’s New Netflix Series
04/20 MONSANTO : Patent Issued for Plant Regulatory Elements and Uses (USPTO 9617553)
04/20 MONSANTO : Patent Issued for Plant Transformation without Selection (USPTO 96175..
04/20 MONSANTO : New Findings from University of Nebraska in Soil Science Provides New..
04/19 INSIDER TRADING ACTIVITY MONSANTO CO : MON) – COO Sold 80,940 shares of St..
04/18 MONSANTO : Activists' tribunal alleges Monsanto hurts environment
04/18 MONSANTO : Bacillus Thuringiensis (mCry51Aa2) Protein in or on Cotton; Temporary..
04/17 MONSANTO : Student Soil Sleuths ‘Dig In’ to Learn About the Importan..
04/13 MONSANTO COMPANY : Post Earnings Coverage as Monsanto Posted Robust Q2 Earnings
More news
Sector news : Agricultural Chemicals - NEC
04/12DJSYNGENTA : China Gives Nod to ChemChina Deal for Syngenta -- Update
04/12DJSYNGENTA : China Gives Nod to ChemChina Takeover of Syngenta
04/05 EU clears ChemChina's $43 billion takeover of Syngenta with conditions
04/05DJSYNGENTA : EU Clears ChemChina's $43 Billion Syngenta Deal With Conditions -- Up..
04/05 SYNGENTA : says ChemChina takeover still set to close in second-quarter
More sector news : Agricultural Chemicals - NEC
News from SeekingAlpha
04/19 THE PASSIVE DGI PORTFOLIO : Review And Updates
04/14 MONSANTO : Slightly Overvalued, But No Time To Be Concerned
04/10 FOCUS ON EUROPE : Will An Akorn - Fresenius Deal Pass Anti-Trust Scrutiny?
04/06 WALL STREET BREAKFAST : Future Of U.S.-China Relations
04/05 Iteris Expecting Big Things From Big Data
Advertisement
Financials ($)
Sales 2017 14 316 M
EBIT 2017 3 319 M
Net income 2017 1 932 M
Debt 2017 6 831 M
Yield 2017 1,86%
P/E ratio 2017 26,22
P/E ratio 2018 21,43
EV / Sales 2017 4,02x
EV / Sales 2018 3,84x
Capitalization 50 682 M
More Financials
Chart MONSANTO COMPANY
Duration : Period :
Monsanto Company Technical Analysis Chart | MON | US61166W1018 | 4-Traders
Full-screen chart
Technical analysis trends MONSANTO COMPANY
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 124 $
Spread / Average Target 7,1%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Hugh M. Grant Chairman & Chief Executive Officer
Brett D. Begemann President & Chief Operating Officer
Pierre C. Courduroux Chief Financial Officer & Senior Vice President
Robert T. Fraley Chief Technology Officer & Executive VP
Robert J. Stevens Lead Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
MONSANTO COMPANY9.78%50 682
SYNGENTA AG12.32%41 917
POTASH CORPORATION OF ..-11.01%13 586
AGRIUM INC.-9.49%12 510
YARA INTERNATIONAL ASA-2.06%10 230
UPL LTD20.55%6 115
More Results