Monsanto Loses USD172M Q4
Monsanto Co. says it lost US$172 million in its fourth fiscal quarter. But that is a smaller loss than the $210 million in the same quarter last year.
The world's largest seed maker said Wednesday it lost three cents per share in the three months ended Aug. 31. That is down from a loss of 18 cents per share in the same period a year ago.
The fourth quarter is generally losing one for Monsanto, because the company has seasonal seed sales. Monsanto says it trimmed its losses this year because of a jump in revenue from Roundup herbicide sales and by its seeds and traits business.
It says sales rose 35 per cent to $2.05 billion from $1.5 billion last year.
Analysts had expected a loss of $0.09 per share on revenues of $1.92 billion.
General Mills earnings drop, Monsanto's rise
MINNEAPOLIS (AP) -— With ingredient prices popping up like toaster strudel, General Mills Inc. said Wednesday that it has raised cereal prices and might consider other price increases.
The maker of Yoplait Yogurt, Wheaties cereal and Pillsbury Toaster Strudel said its fiscal fourth-quarter profit dropped 17 percent.
"Input cost inflation will remain a significant challenge for us," with the biggest increase coming early in the fiscal year, Chief Financial Officer Don Mulligan said.
Foodmakers are vulnerable to inflation on several fronts: Costs are up for raw ingredients like wheat and oats, for natural gas to run their foodmaking operations and for the diesel to haul their products around.
General Mills says it has been fighting that by streamlining its operations. And it saved about $1 million a year by reducing the number of pretzel varieties in its Chex Mix from 14 to three.
For the quarter that ended May 25, the Minneapolis-based foodmaker's net income fell to $185.2 million, or 53 cents per share, from $224.1 million, or 62 cents, a year earlier. Excluding losses on commodity positions, General Mills would have earned 73 cents per share. The company recorded a $111 million loss on commodity hedges because prices in some commodities—especially wheat—declined during the quarter.
Monsanto Co, reported that the St. Louis-based company's profit soared 42 percent in its fiscal third quarter on a strong performance by Roundup herbicide and by its seeds and traits business. The company also boosted its earnings guidance for the year.
But its shares fell more than 4 percent in morning trading as its revenue for the quarter came in below expectations. Its shares recovered slightly, but still closed down $4.27, or 3.1 percent, at $131.52.
Monsanto said Wednesday that it earned $811 million, or $1.45 per share, in the three months ended May 31, up from earnings of $570 million, or $1.03 per share, in the same period a year ago.
Sales rose 26 percent, to $3.59 billion, up from $2.84 billion.
Monsanto cited increased sales of Roundup and other glyphosate-based herbicides globally; increased revenue from soybean, corn and cotton seed and traits revenue in the U.S.; and higher corn seed revenues in Europe and Africa.
Monsanto says its seeds will double yield of corn, soybeans and cotton by 2030
CREVE COEUR, Missouri (AP) - Monsanto Co. Chief Executive Hugh Grant set a bold goal for the company on Wednesday, promising to develop by 2030 new strains of corn, soybeans and cotton that can yield twice as much grain and fiber per-acre while consuming just two-thirds the water.
Grant announced the initiative during a company meeting without laying out specific strategies or initiatives Monsanto would employ to reach the goal. He said afterward that Monsanto will rely on its current research and development team that is developing crops resistant to drought and pests.
"If we succeed in doubling yields, it absolutely changes the opportunity for food availability," Grant said.
That last sentence roughly translates as "if we pull this baby off then we're going to have so much money we can buy the planet."
