Monsanto Posts Q4 Loss as Corn Seeds Sales Slip
Global agribusiness group Monsanto posted a fourth-quarter loss on Wednesday, as expected, amid a seasonally sluggish sales period, and offered a conservative outlook for the new year.
For the fiscal year just ended, Monsanto said ongoing earnings growth hit 25%, excluding unusual items, but the company forecast mid-teens ongoing earnings growth for 2013.
Sales totaled $2.11 billion for the quarter ended Aug. 31, down from $2.25 billion a year before, as corn seeds and trait sales declined year to year.
Monsanto, the world's largest seed company and a developer of genetically engineered corn, soybeans, and other crops, posted a quarterly loss of 44 cents a share on an ongoing basis, excluding a restructuring charge of 2 cents a share, worse than the loss of 22 cents a share a year before but in line with analysts' expectations.
On a net basis, the company lost $229 million, or 42 cents a share, for the quarter, compared with a loss of $112 million, or 21 cents a share, a year before.
Company officials said the base business in the United States was complemented by its growing international seeds and traits performance.
Sales of corn seeds and traits dropped 12% in the fourth quarter from a year ago, and cotton sales were off 84%. Quarterly soybean sales, meanwhile, jumped 48%, and vegetable seed sales were up 26% year over year.
