Monsanto Results Boosted by Soybean Seeds and Traits Business
28 June 2017 - 11:27PM
Dow Jones News
By Ezequiel Minaya
Monsanto Co.'s soybean seed and traits business posted sales
that climbed 29% during the fiscal third quarter, which helped
propel the seed giant to better-than-expected results for the
period.
Total sales were nearly flat, inching upward 1% to $4.23 billion
but still stronger than the $4.17 billion expected by analysts
surveyed by Thomson Reuters.
"In soybeans, Monsanto has seen strong demand for the latest
technologies, with growth of approximately 30[%]...in global gross
profit now expected for fiscal year 2017," the company said in a
press release.
Amid the latest results, Monsanto said it expects full-year
earnings on a per-share basis at the high end of the range of $4.09
to $4.55 as well as adjusted earnings of $4.50 to $4.90. Among
other factors affecting the current quarter, the company said it
expects to benefit from roughly $70 million in noncore asset
sales.
Shares rose 0.64% to $118.00 in premarket trading Wednesday.
In the latest quarter, revenue from seeds and genomics,
Monsanto's biggest business, fell 2.3% to $3.13 billion despite the
strong showing of the soybean seed segment, which is housed in the
category. For the quarter, the soybean business surged to $896
million in sales from $693 million.
Key soybean-growing states have approved herbicide mixes for the
company's new genetically modified soybean, Roundup Ready 2 Xtend.
The seeds were introduced last year, but concerns over EU approval
slowed their use.
Monsanto reported income of $843 million, or $1.90 a share, up
from $717 million, or $1.63 a share, a year ago.
Excluding certain items, adjusted per-share earnings were $1.93,
down from $2.17 a year ago but better than the $1.76 expected by
analysts.
Last year, Monsanto agreed to sell itself to Bayer AG after
months of haggling, in a $57 billion deal that creates an
agricultural powerhouse. The deal ranks as the largest-ever
takeover of a U.S. company by a German firm and pivots Bayer
heavily toward agriculture in a long-range bet on high-tech crops
to sustain a growing global population. The tie-up has been in
regulatory reviews in the U.S. Monsanto has said it expects the
transaction to close by the end of 2017.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
June 28, 2017 09:12 ET (13:12 GMT)
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