Monsanto’s 1Q Loss Widens

ST. LOUIS – Monsanto Co. has reported a wider net loss in its fiscal first quarter, weighed down by the write-off for its global wheat business and restructuring charges.

The crop biotechnology and pesticides company said its net loss for the three-month period ended Nov. 30 came to $97 million, or 37 cents a share, compared with a year-earlier net loss of $18 million, or seven cents a share.

In the latest quarter, the company booked a goodwill write-off of $69 million, or 26 cents a share, for its global wheat business. The company also recorded charges of 15 cents a share related to restructuring efforts and discontinued operations. Excluding those items, a Monsanto representative said the company earned four cents a share.

Last month, Monsanto raised its first-quarter forecasts on a reported and ongoing basis by about 10 cents a share from its original guidance, citing better-than-expected results at its Brazilian operation and the timing of its U.S. sales. Previously, the company expected to post a net loss of 54 cents to 59 cents a share, and an ongoing loss of seven cents to 12 cents a share, excluding items.

Total sales for the first quarter climbed 22 percent to $1.03 billion from $846 million a year earlier amid higher sales of Roundup herbicide in the United States and Brazil.

Sales at the company’s agricultural productivity business, which includes crop-protection products and the lawn and garden herbicide business, surged 34 percent to $643 million.

Monsanto has been trying to lower costs related to its agricultural chemistry business. In October, the company announced a restructuring plan that included layoffs, cutting costs in the Roundup herbicide business and ending its plant-made pharmaceuticals business. The plan also included Monsanto’s exit from its breeding and seed business for wheat and barley in Europe.

For 2004, Monsanto backed its December guidance for earnings of 55 cents to 65 cents a share on a reported basis, and earnings excluding items of $1.40 to $1.50 a share.

Source: SmartMoney