DOW JONES NEWSWIRES
Monsanto Co. (MON) posted a wider fiscal-fourth quarter loss on
restructuring charges, while revenue dropped and overhead costs
were slashed 35%.
Shares rose 2.2% to $77 as earnings excluding charges edged
analysts' expectations, though sales fell short. The company also
reiterated its recently issued downbeat forecast.
The company in June unveiled plans to separate its struggling
Roundup and other herbicides into a new division. Last month,
Monsanto doubled its job-cut plans to 8% of its work force.
Monsanto is focusing on biotechnology research for future growth as
Roundup revenue weakens amid tough competition from generic
herbicides and lower global farm incomes.
However, last month the company said it could double its gross
profit by 2012 from 2007 as it rolls out new genetically modified
corn and soybean seeds. Genetically modified-seed projects have met
resistance from environmental groups and scientists in a number of
countries.
For the quarter ended Aug. 31, the company reported a loss of
$284 million, or 43 cents a share, compared with a prior-year loss
of $172 million, or 31 cents. Excluding restructuring-related and
other charges, Monsanto had a 2-cent profit in the latest quarter,
compared with a prior-year loss of 3 cents.
Revenue decreased 8.3% to $1.88 billion.
Analysts polled by Thomson Reuters most recently forecast
earnings of 1 cent on revenue of $1.97 billion.
Gross margin fell to 45.6% from 46.8% amid the sales
decline.
At its seeds and genomic segment, revenue fell 3.5%, pulled down
by lower sales of soybean and cotton seeds and traits, despite
gains at its larger corn and vegetable segments. At the operations
that include herbicides, revenue slid 17%.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com