Monsanto profit rises 22 percent in second quarter

Apr 03, 2013 by Matthew Perrone

(AP)—Monsanto reported Wednesday that its income increased 22 percent in the agriculture products company's second quarter on strong sales of biotech seeds, particularly in Brazil and other emerging markets.

The company boosted its full-year earnings guidance, citing its strong performance in the first half of the year.

Its shares rose 2 percent in morning trading.

The St. Louis company said it earned $1.48 billion, or $2.74 per share in the three months ended Feb. 13, up from $1.21 billion, or 2.24 per share, in the same quarter a year ago.

Monsanto Co.'s sales increased 15 percent to $5.47 billion, led by genetically modified corn seeds, the company's best-selling product.

The company's results topped Wall Street predictions of $2.56 per share on sales of $5.27 billion, according to FactSet.

Monsanto executives raised their full-year earnings outlook to between $4.40 and $4.50 per share, up from $4.30 to $4.40. Analysts expect earnings of $4.56 per share.

Monsanto has dominated the bioengineered-seed business for more than a decade. In recent years the company has focused on growing business in like Argentina, Brazil and other Latin American countries.

The company's corn, soybean, cotton and other seeds have genetically engineered traits that repel bugs, increase yield and make them resistant to weed-killer. The company says these benefit farmers enough that they come out ahead, even though the seeds cost more than conventional seeds. Monsanto's critics argue that the company has tried to use to control the supply of seeds for soybeans, corn, cotton, and other agricultural . Monsanto has a policy that prohibits farmers from saving or reusing the seeds once a crop is grown

Last month the Supreme Court heard a case between Monsanto and an Indiana farmer who replanted the company's herbicide-resistant soybeans after buying them second hand. The court appeared likely to side with Monsanto Co. in its claim that the farmer violated the company's patents on the technology.

Sales of the company's seeds business increased more than 10 percent to $4.3 billion in the second quarter. Sales of the company's agricultural productivity unit, which sells pesticides and herbicides, increased 36 percent to $1.1 billion.

Monsanto historically made most of its money from chemicals, including the Roundup. But Roundup isn't as profitable as it used to be, in part because competition from generic products from China and other nations has dragged down the price Monsanto can charge.

Monsanto shares rose $2.03, or 2 percent, to $105.65 in morning trading. They are near the high end of the 52-week range of $69.70 to $106.61.

Explore further: Ex-Qualcomm exec pleads guilty to insider trading

not rated yet
add to favorites email to friend print save as pdf

Related Stories

High court to hear farmer, Monsanto seed dispute

Oct 05, 2012

(AP)—The Supreme Court is agreeing to hear a dispute between a soybean farmer and Monsanto Co. over the company's efforts to limit farmer's use of its patented, genetically engineered Roundup Ready seeds.

Monsanto, DuPont end fight over GMO seeds

Mar 27, 2013

Agribusiness giants DuPont and Monsanto ended a legal fight Tuesday over rights to genetically modified seeds, with DuPont agreeing to pay Monsanto licensing fees for its seed technology.

Old herbicides enlisted in new 'war on the weeds'

May 23, 2012

The emergence of weeds resistant to the most widely used herbicide is fostering a new arms race in the war against these menaces, which cost society billions of dollars annually in control measures and lost agricultural production. ...

Russia suspends Monsanto corn imports

Sep 26, 2012

Russia has temporarily suspended importing genetically-modified corn made by the US biotech giant Monsanto after a controversial study linked it to cancer in rats.

Recommended for you

Verizon 2Q profit rises 93 percent

2 hours ago

Verizon reported Tuesday that its second-quarter earnings nearly doubled after it secured full ownership of Verizon Wireless.

Comcast 2Q earnings top views on Internet hookups

3 hours ago

Comcast Corp.'s second-quarter net income rose 15 percent to nearly $2 billion as it added high-speed Internet customers at a faster pace than a year ago and video subscriber losses moderated.

Ex-Qualcomm exec pleads guilty to insider trading

18 hours ago

A former high-ranking executive of US computer chip giant Qualcomm pleaded guilty Monday to insider trading charges, including trades on a 2011 deal for Atheros Communications, officials said.

Media venture creates press litigation fund

18 hours ago

The media venture created by entrepreneur Pierre Omidyar said Monday it was establishing a fund to help defend journalists in cases involving freedom of the press.

User comments : 3

Adjust slider to filter visible comments by rank

Display comments: newest first

btb101
1 / 5 (1) Apr 03, 2013
If there is no human harm to GMO why do they need the monsanto protection act that has just passed in the USA?
why will they not allow testing on animals?
Why do they not even serve food grown in their own labs inside their own staff canteen?

I believe that this company (and the others like it) are giving us a ticking bomb. We need through testing now to know what we can really expect in the future. And if it is as bad as everyone fears, shut them down for good...
kochevnik
1 / 5 (1) Apr 03, 2013
Bitcoin jumped 15X in value as well today because people know that politicians are in the hands of the corporatists, and a good percentage should be tried and hung from lampposts, rather than party with lobbyists and banksters

Funny money is playing it's final hand. Can't go below 0% interest. Massive inflation looms ahead
ValeriaT
1 / 5 (1) Apr 03, 2013