Monsanto Delivers Strong Seeds and Traits, Crop Protection Growth

"The current environment certainly touches everyone in agriculture, but unlike more commodity-oriented organizations, Monsanto’s ability to continually innovate to deliver new value each year for farmers is a strategic differentiator for our company,” said Hugh Grant, chairman and chief executive officer. “Our focus on innovation creates more opportunities to deliver growth in both the current environment and over the long-term as strong demand-driven fundamentals reinforce agriculture’s multi-year opportunity.” --Monsanto Chairman and CEO Hugh Grant

“We’re confident in our ability to deliver the targets we’ve set in both the near term and over the longer term.” –Monsanto Chairman and CEO Hugh Grant

Monsanto Co. posted a narrower fourth-quarter loss compared with a year ago, boosted by stronger seed and crop protection sales. It cautioned that its crop protection profit is expected to be lower in 2015.

Advertisement

Executives commented that the balance of the company’s global business “positions it well for continued growth and investment in fiscal year 2015 as the company executes on its plan to at least double ongoing earnings per share over the next five years.”

“We’re confident in our ability to deliver the targets we’ve set in both the near term and over the longer term,” said Hugh Grant, chairman and chief executive officer.

Monsanto reported net sales of about $2.6 billion in the quarter, compared with $2.2 billion in the year-earlier period. Its Seeds and Genomics business accounted for $1.4 billion in sales, up from $1.2 billion a year ago, while its Agricultural Productivity business — which comprises its crop protection and lawn-and-garden herbicide products — posted sales of $1.3 billion, up from $1 billion a year ago.

Top Articles
ADAMA Reports Fourth Quarter and Full Year 2023 Results

Monsanto’s net loss totaled $156 million in the quarter, compared with a net loss of $249 million in the same period last year.

For the fiscal year, Monsanto realized Seeds and Genomics segment sales of $10.7 billion, led by a record year for its global soybean portfolio that achieved a 27% increase over the prior year. In 2014, the company also increased corn margins even as its corn business faced headwinds from lower acres and currency effects. Within the global corn business, the company’s cost of goods sold was lower, portfolio mix was on track, total price uplift was positive and it had good volume against declining planted acres, Monsanto said.

Looking ahead, the company expects 2015 profit to grow in the double-digit to mid-teens on a percentage basis, powered by its core corn and soybean businesses. For Agricultural Productivity, it expects the segment gross profit to be “down by up to 10% in fiscal year 2015, offsetting some of the anticipated core growth from its seeds and traits businesses.”

Monsanto noted that it expects an overall shift in its full-year earnings patterns, as “structural factors” result in a smaller first quarter and a concentration of growth in the third quarter. “With macro conditions resulting in lower planted acres for key regions in both corn and cotton in the quarter, combined with a timing shift as the company moves more of its Agricultural Productivity business to branded-product sales, Monsanto expects its first quarter will be roughly half of the total earnings from the first quarter of 2014,” the company said.

 

For more information about Monsanto’s earnings see the full release.

Hide picture