Monsanto Q3 profit down 14%; 900 job cuts planned

24 June 2009 15:36  [Source: ICIS news]

TORONTO (ICIS news)--Monsanto’s fiscal third-quarter net profit fell 14% on an 11% drop in net sales, the US-based seeds and herbicides producer said on Wednesday.

The company also said it would cut 900 jobs, or less than 4% of its regular global workforce, as part of a restructuring.

Net income for the three months ended 31 May was $694m (€493m), down from $811m in the third quarter of 2008.

Net sales were $3.16bn, compared with €3.54bn a year ago. Gross profit was $1.83bn, down from $1.96bn. 

The results reflected decreased revenues from Monsanto’s Roundup and other glyphosate-based agricultural herbicides globally, it said.

The declines were only partially offset by increased revenues from seed and trait products sold through the company's US soybean, cotton, corn and vegetable businesses.

In addition to the job cuts, Monsanto also announced it would set up a separate division for its Roundup and other herbicides business to better align spending and working capital needs, it said.

"We believe these steps are in the best interests of our shareowners, our customers and our employees. This is designed to bring more clarity and predictability to our Roundup business and greater focus to our growing seeds and traits business," CEO Hugh Grant said.

Monsanto expected to take a one-time charge of about $350m-400m in its fiscal fourth quarter to account for the restructuring, it said.

($1 = €0.71)

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By: Stefan Baumgarten
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