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Monsanto, known for its genetically engineered corn, soybeans
and other crops as well as its popular Roundup herbicide, said
for the quarter it made $1.14 billion, or $2.39 a share, up from
$858 million, or $1.62 a share, a year earlier.
Analysts, on average, were expecting $2.07 a share, according to
a survey by Thomson Reuters I/B/E/S.
Sales were up for the company's corn and soybean seeds, and for
the unit that includes Roundup, but off for the company's
vegetable, cotton and other seeds and genetic traits businesses.
The quarterly results got a boost from a $300 million commercial
licensing and technology deal with Scotts Miracle-Gro <SMG.N>
that among other things expanded Scotts marketing rights to
Monsanto's Roundup.
Monsanto Chairman Hugh Grant said in a statement that the
company sees acquiring Syngenta as "an exciting logical next
step" that would provide "the opportunity to accelerate
innovation and support a more diverse group of farmers around
the world.” Syngenta thus far has rejected Monsanto's overtures.
Monsanto has put its share repurchase program on hold as the
company continues to pursue its proposal to combine with
Syngenta.
Monsanto officials said Wednesday they see tough market
challenges ahead, and forecast break-even results for the
company’s fourth-quarter. They reaffirmed fiscal-year 2015
ongoing earnings per share guidance at the low end of the range
of $5.75 to $6.00.
Looking beyond the current year, weakening foreign currencies
and low commodity prices were seen as key challenges, Monsanto
officials said.
As a result, the company said it is developing plans to reduce
its operating spending potentially in the range of $300 million
to $500 million by the end of fiscal year 2017.
(Reporting by Carey Gillam in Kansas City; Editing by Chizu
Nomiyama and Nick Zieminski)
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