Monsanto 3Q profit sinks 37 percent as seed sales fall
Jun. 29, 2016
ST. LOUIS (AP) — Monsanto said Wednesday that its profit sank 37 percent in the most recent quarter as sales of its seeds and weed control products fell.
The agriculture products company also said Wednesday that it is still in discussions with German drug and chemicals company Bayer AG about its $62 billion takeover bid, which Monsanto rejected last month. But the St. Louis company said it is also in discussions with "others" about strategic options.
For the fiscal third quarter, Monsanto reported net income of $717 million, or $1.63 per share. That compares with $1.14 billion, or $2.39 per share, in the same period a year before.
Earnings, adjusted for pretax expenses and non-recurring costs, were $2.17 per share, falling short of Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $2.41 per share.
Revenue fell 8.5 percent to $4.19 billion in the period, which also missed Street forecasts. Four analysts surveyed by Zacks expected $4.43 billion.
Sales of its corn seeds rose 5 percent. Soybean seed sales fell 17 percent, cotton seed sales fell 23 percent and vegetable seed sales fell half a percent. Sales of other crop seeds rose 60 percent. Sales of its weed control and other agricultural products fell 29 percent.
The company said it expects its full-year adjusted earnings to come in at the lower end of its previously announced forecast between $4.40 and $5.10 per share. Analysts expected earnings of $4.64 per share for the year, according to FactSet.
Shares of Monsanto Co. were up more than 3 percent to $104.75 before the stock market opened Wednesday. The stock has fallen 2 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on MON at http://www.zacks.com/ap/MON
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