Still one of the best positioned companies (if controversial) in my favorite long term growth story - agriculture; but in the near term I see nothing to get excited about here chart wise. It really has done nothing since we sold it in early April.
As we've been noting in earlier pieces, Monsanto is transforming their company quite dramatically with the lower profile of Roundup (herbicide) and the growth of their seed business. In fact they announced they are now putting Roundup into its own division to separate it from the new "core" business.- Monsanto Co (MON) said Wednesday that future gross profits from its Roundup herbicide business would drop by half to about $1 billion annually as the company grapples with increased competition in the sector.
- The business, once a core money-maker for Monsanto, will in the future amount to less than 15 percent of the company's total gross profit, said Monsanto chairman Hugh Grant.
- "Over the last six years, Monsanto's business has undergone a dramatic transition from a company historically built on chemical innovations to one focused on delivering enhanced seed offerings," said Monsanto Chairman Hugh Grant in a statement accompanying the results.
- "This has been a dark cloud looming over Monsanto's head," said Morningstar analyst Ben Johnson of the herbicide business. "The Roundup numbers today were disastrous." "The seed franchise continues to go very strong," but herbicides have been a "wet blanket on their shares," Johnson said.
- Monsanto Co, the world's biggest seed company, posted a smaller-than-expected slide in quarterly profit on Wednesday and said it would cut about 900 employees and realign its declining herbicide business, news that sent its shares higher.
- St. Louis-based Monsanto (MON), a leader in development of genetically modified crops, said net income for the third quarter totaled $694 million, or $1.25 a share, falling from $811 million, or $1.45 a share, a year earlier.
- Analysts on average were expecting $1.18 a share after a warning by the company last month of lower earnings due to tougher competition in the herbicide business.
- Net sales of $3.2 billion for the quarter were down 11 percent due in part to declines in the company's Roundup and other glyphosate-based agricultural herbicides globally.
- Agricultural productivity, including herbicide revenues, fell 39 percent to $913 million and gross profit fell 54 percent amid increased competition in the sector while net sales of seeds and genomics grew nearly 10 percent.
- In addition to the new division for the herbicide business, Monsanto announced a planned restructuring that will include a reduction of approximately 900 employees across the entire company. The reduction will vary from country to country and will be less than 4 percent of the company's global workforce.
- The company anticipates the actions will require a one-time restructuring charge estimated at approximately $350 million to $400 million, or $0.41 to $0.47 per share to the company's fourth-quarter EPS in fiscal year 2009. The company expects to complete its restructuring in fiscal year 2010. (again one of my big beefs on Wall Street is these sort of costs are not counted against a company, since people wish to normalize earnings - i.e. if I chopped off my arm please don't count that as happening since its a 1x event)
[Jun 1, 2009: SmartMoney: Monsanto's CEO on Growing in a Recession]
[May 27, 2009: Monsanto Pulls Full Year Earnings Guidance Down to Lower End on Roundup Weakness]
[Apr 2, 2009: Monsanto - Solid Earnings]
[Jan 7, 2009: Monsanto Earnings - Quite Awesome]
[Sep 16, 2008: Monsanto Raises Guidance Again]
[Jun 25, 2008: Monsanto - Good Results, Expectations Very High]
[Jun 5, 2008: Monsanto Plans to Double Grain Yields by 2030; Some Have Doubts]
[Apr 2, 2008: Monsanto Hilarious Reaction to Guidance]
[Feb 12, 2008: Monsanto Raises Guidance Yet Again]
[Jan 3, 2008: Monsanto - Very Good Earnings and Raised Guidance]
[Oct 9, 2007: Looking Ahead to Monsanto]
No position
