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 Jan. 8, 2013 Source: Monsanto news release To read the entire report click here. Monsanto Company (NYSE: MON) delivered strong results for the first quarter of its fiscal year 2013, reflecting contributions from the continued expansion of its Latin American corn business, early momentum in its U.S. seeds and traits business and performance of its agricultural productivity segment. Executives said the cumulative strength of the company's broad business portfolio translated to an increase in full-year earnings per share and free cash flow guidance, even at this early point in the company's fiscal year. Monsanto also highlighted 18 phase advancements across its integrated yield pipeline, a record for its annual research and development update. "We've achieved a successful start to the year, with contributions from multiple areas that speaks to the strength of our global business and provides confidence in our ability to realize a third consecutive year of significant growth," said Hugh Grant, chairman and chief executive officer for Monsanto. "The momentum in our business is also seen in our record research and development progress. Through continued innovation in our integrated yield pipeline, we remain committed to delivering cutting-edge solutions that will bring additional value to our customers." Results of Operations The company achieved strong first quarter results that reflect the strength and growth of its business. Net sales for the quarter increased 21 percent over the prior year's first quarter to $2.9 billion, with significant contribution from the corn seed and traits business, led by the corn opportunity acceleration in Latin America and strong shipments in the United States reflective of a positive order book. Gross profit for the 2013 first quarter increased 27 percent over the prior year period to $1.4 billion. Selling, general and administrative (SG&A) costs were $542 million in the first quarter. Research and development (R&D) expenses decreased year-over-year to $346 million for the quarter. The company's first quarter earnings per share (EPS) was $0.62 on an ongoing and $0.63 on an as-reported basis. The Seeds and Genomics segment consists of the company's global seeds and related traits business. Sales for Monsanto's Seeds and Genomics segment increased 14 percent in the first quarter to $1.8 billion, with corn seed and traits performance driving the first quarter strength. Corn seed and traits net sales increased 27 percent over last year's first quarter to $1.1 billion, driven in part by the business strength in Brazil, Argentina and Mexico. The trait upgrade and expansion is on track in both Brazil and Argentina where the company is achieving strong demand for its corn products. In Brazil, farmers continue to upgrade from single trait corn products to the first double stack, VT PRO™ 2. In its second year of commercial sales, VT PRO™ 2 is the second-highest volume trait in the company's Brazil corn portfolio this year. Likewise, in Argentina, the company has also seen strong adoption of its Genuity® VT Triple PRO® product. The triple-stack corn product is on track to be 40 percent of the company's Argentine corn portfolio in just its second year on the market. Complementing the corn performance in Latin America is the early momentum in the U.S. seeds and traits business. Backed by strong cash flow and customer prepayments, the company noted a positive U.S. order book, with the order pace ahead of the same point in time last year. With two years of strong performance, company executives said the U.S. business is in position to grow again in 2013. This includes another increase in acres for both its Genuity® Roundup Ready 2 Yield® platform in soybeans and the Genuity® reduced refuge family in corn. The Agricultural Productivity segment consists of the crop protection products and lawn-and-garden herbicide products. Net sales in the first quarter of fiscal 2013 for Monsanto's Agricultural Productivity segment increased $279 million, reflecting the benefit of a favorable marketplace environment lifting the business in the near-term. The company indicated it remains focused on its established strategy for Roundup® following the reset of that business in 2010. Tweet |
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