January 8, 2007

Monsanto's Q1 profit rise 53 percent on higher US corn sales

Agrigiant Monsanto said Thursday, Jan 4 that its Q1 net income rose 52.5 percent on higher sales in its US corn seeds and trait and Roundup businesses.

For the fiscal 2007 Q1 ended Nov 30, the company reported net income of US$ 90 million, compared to US$ 59 million for the prior year's Q1.

The company's Q1 net sales rose 9.5 percent to US$ 1.54 billion as against US$ 1.4 billion in the Q1 of fiscal 2006. The company attributed this to stronger demand for Monsanto's corn seed and trait technologies in the US, and greater volumes of Roundup herbicides in the US and Brazil.

The company's Q1 sales were partially offset by lower volume in Monsanto's cotton traits in Australia as drought  conditions there cut the total cotton production area in half, according to the release.

Hugh Grant, Monsanto's chairman, president and CEO said his business was on track for another strong year.

Monsanto expects the fiscal Q2 and Q3 to be the primary drivers for its 2007 earnings-per-share (EPS) results as these quarters reflect both the relative size of the company's US business and the importance of its seeds-and-traits business to earnings.

The St Louis-based Monsanto Co develops insect and herbicide-resistant crops and other agricultural products.