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Monsanto, which also reported a much wider quarterly loss, said
that along with the layoffs, its global restructuring would
include "streamlining and reprioritizing" some commercial and
research and development work, including an exit from the sugar
cane business. Its shares fell 4 percent in premarket trading.
The company said it expected the initial phase to lead to annual
savings of $275 to $300 million by the end of fiscal 2017, at a
total cost of $850 million to $900 million. It is developing
further plans to reduce its operating spending by an additional
$100 million, bringing the total annual expected savings to as
much as $400 million.
Monsanto said it was pegging its earnings-per-share outlook for
its new fiscal year, which began on Sept. 1, at $5.10 to $5.60.
That is well below many analysts' expectations for more than
$6.00.
To try to shore up investor confidence, the company announced a
new $3 billion accelerated share repurchase program.
Monsanto said its loss widened to $1.06 a share for the fourth
quarter ended on Aug. 31 from a loss of 31 cents a year earlier.
Sales of corn seeds and traits, Monsanto's key products, fell to
$598 million from $630 million. And sales at the company's
agricultural productivity unit, which includes Roundup
herbicide, dropped to $1.1 billion from $1.25 billion in the
quarter.
Shares of Monsanto were down 4 percent at $84.00. The stock had
fallen roughly 30 percent from a high set last February, and its
growth strategy has under intense investor scrutiny after its
attempted takeover of Swiss rival Syngenta AG failed.
(Reporting by Carey Gillam in Kansas City, Mo.; Editing by Lisa
Von Ahn)
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