Monsanto Q3 profit up 36% on 'Roundup' herbicides

25 June 2008 14:52  [Source: ICIS news]

TORONTO (ICIS news)--US agrichemicals major Monsanto reported on Wednesday a 36% increase in fiscal third-quarter earning before interest and tax (EBIT) on the back of higher global sales and margins for its Roundup agricultural herbicides.

 

Also helping results were increased soybean, corn and cotton seed and traits revenues in the US as well as higher corn seed revenues in Europe and Africa, Monsanto said.

 

EBIT for the three months ended 31 May was $1.088bn (€696m), up from $799m in the same period the year before.

 

Monsanto reported total net sales of $3.6bn, up 26%.

 

Sales for the company’s Roundup and other glyphosate-based herbicides rose to $1.168bn, from $757m in the year-earlier period.

 

Net income rose 42%, to $811m, and gross profit rose 31% to reach almost $2bn during the quarter.

 

“This strong growth sets up a solid foundation for our business and to reach our target of more than doubling gross profit in 2012,” said Monsanto CEO Hugh Grant.

 

Monsanto provided farmers with the tools to increase productivity, helping them to meet growing food, feed and biofuel needs, Grant said.

 

“While others are asking should it be food or feed or fuel, we believe the answer is AND, and we have the solutions in hand to be a significant part of that answer," he said.

 

Analysts at JPMorgan said Monsanto’s gross margin in the quarter increased 200 basis points to 55% due to sharply higher margin in Roundup, which were 51% compared with 38% in the year-ago period.

 

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($1 = €0.64)

By: Stefan Baumgarten
+1 713 525 2653

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