Monsanto's Q2 profits up 77% on record sales

02 April 2008 15:27  [Source: ICIS news]

LONDON (ICIS news)--Monsanto posted a 77% increase in second-quarter income from operations to $1.47bn driven by record revenues, the US agriculture giant said on Wednesday.

 

The company’s sales increased 42% year on year to $3.8bn, with US corn seed and traits, and its Brazilian corn seed businesses recording strong growth.

 

In its full-year outlook, Monsanto said it expected earnings per share (EPS) in the range of $3.15 to $3.25 on an ongoing basis - coming in below the recent Wall Street analyst consensus of $3.30.

 

Investors reacted to the disappointing outlook with Monsanto shares dropping more than 3% in early trading in New York.

 

"The performance of our seeds and traits business has us on track for another exceptional year and well positioned to support our five-year strategic growth plan,” said Monsanto CEO Hugh Grant.

 

“Between now and 2012, we are the only agriculture company that can point to consistent growth irrespective of commodity price swings, fluctuations in planted acres or the popularity of ethanol,” he added.

 

The company’s largest business unit, corn seed and traits, posted a 39% rise in second-quarter sales to $1.75bn.

 

Monsanto is the world's largest seed company.

By: Mark Watts
+44 20 8652 3214

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