27 May 2010 16:22 [Source: ICIS news]
TORONTO (ICIS news)--Monsanto will reposition its Roundup-brand glyphosate herbicide business as it responds to “fundamental structural changes” in the industry, the US-based agrochemicals major said on Thursday.
The action was prompted by “systemic margin compression” in the distribution channel because of oversupply and “the reality that Chinese glyphosate capacity is profoundly overbuilt,” Monsanto said.
The company would drastically narrow its Roundup portfolio to offer farmers a simple, quality product that met their needs at a price closer to generics, it said.
"By reducing the uncertainty associated with Roundup, we free Monsanto to grow on its fundamentals," said chief executive Hugh Grant.
"What matters to our long-term growth is our seeds-and-traits business, which is on track," he added.
Monsanto also said its fiscal 2010 year ongoing earnings per share guidance was now $2.40-$2.60. This compares with earlier guidance of $3.10-$3.30 for the 12 months ending 31 August.
In March, Monsanto completed a $200m (€164m) expansion at its glyphosate herbicide plant at Luling near New Orleans, Louisiana.
($1 = €0.82)
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