Monsanto fiscal 2010 net income falls by $1bn, sales down 10%

06 October 2010 14:21  [Source: ICIS news]

TORONTO (ICIS)--Monsanto’s fiscal 2010 net income fell by $1bn (€720m), or 47%, to $1.1bn as overall sales dropped 10% due to a weak performance in the company’s agricultural segment, the US-based international agri-business said on Wednesday.

Net sales for the 12 months ended 31 August were $10.5bn, compared with $11.7bn in the 2009 fiscal year. Seeds and genomics segment sales rose slightly but sales in Monsanto’s agricultural productivity segment declined 35%.

“Pricing actions for Roundup and other glyphosate-based herbicides had a significant effect on overall net sales and gross profit,” the company added.

Full-year gross profit was $5.08bn, compared with $6.76bn in the 2009 fiscal year.

For the fiscal fourth quarter ended 31 August, Monsanto recorded a net loss of $143m, compared with a net loss of $233m in the year earlier period, as overall fourth-quarter sales rose 4% to $1.95bn.

In its outlook, Monsanto said that its seeds and genomics segment, “which will account for the bulk of Monsanto's business in fiscal year 2011 and beyond”, was expected to deliver single-digit unit volume growth. Seed and genomics already accounted for over 70% of fiscal 2010 net sales.

Fiscal 2011 earnings per share from ongoing business were expected to increase by 13-17%, to a range of $2.72 to $2.82, Monsanto said.

This compares with fiscal 2010 and fiscal 2009 earnings per share from ongoing business of $2.41 and $4.41, respectively.

($1 = €0.72)

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By: Stefan Baumgarten
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