June 30, 2006

Monsanto's sales skyrockets as corn seed popularity grows

The growing popularity of its soy and corn products helped the company post a significant increase in third-quarter net income, Monsanto said Thursday (Jun 29).

The seed manufacturer's net income soared to US$334 million in the three months ended May 31, up from US$47 million earned in the year-earlier third quarter.

The comparison includes write-offs in the 2005 third quarter for ongoing research and development costs from its Seminis and Stoneville acquisitions.

The St Louis seed maker said sales rose more than 15 percent in the three months ended May 31 to US$2.35 billion from US$2.04 billion.

The increase was mainly driven by higher revenue from Monsanto's soy and corn products. Sales from its Seminis vegetable and fruit seed business, which was acquired in 2005's third quarter, and its Roundup  herbicide, also rose.