Released on 08/01/13

 

Monsanto raised its 2013 earnings outlook as first-quarter corn seed and  traits results pushed profits far above Wall Street expectations. The  company posted net income of $339 million (62 cts/share) for the quarter  ended 30 November, up from $126 million in the year-ago period, on  "significant contribution from the corn seed and traits business, led by  the corn opportunity acceleration in Latin America and strong shipments  in the United States," Monsanto says. Analysts had expected 37  cts/share according to Thomson Reuters (New York). Net sales increased  21%, to $2.9 billion.

 

Monsanto raised its 2013 earnings guidance from $4.18–4.32/share to  $4.30–4.40/share, although the revised forecast still misses analysts'  consensus estimate of $4.43/share.

 

"We've achieved a successful start to the year, with contributions from  multiple areas that speak to the strength of our global business and  provides confidence in our ability to realize a third consecutive year  of significant growth," says Hugh Grant, chairman and CEO for  Monsanto. "The momentum in our business is also seen in our record  research and development progress. Through continued innovation in our  integrated yield pipeline, we remain committed to delivering  cutting-edge solutions that will bring additional value to our  customers."

 

Seeds and genomics gross profit increased 12%, to $1 billion, on sales  14% higher, to $1.8 billion. Corn seed and traits net sales increased  27%, to $1.1 billion, driven in part by the business strength in Brazil,  Argentina, and Mexico, Monsanto says. In Brazil, farmers continue to  upgrade from single trait corn products to the first double stack, VT  PRO 2. In Argentina, the company says it has seen strong adoption of its  Genuity VT Triple PRO triple-stack corn seed, which is on track to be  40% of the company's Argentine corn portfolio in just its second year on  the market. In the US market, seed orders point to growth in 2013, the  company adds.

 

Crop protection sales increased 21%, to $1.2 billion, and segment gross  profit more than doubled, to $372 million. Monsanto says the strong  performance reflects near-term supply and demand imbalance and higher  prices for generic glyphosate.

 

Source Chemical Week