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Monsanto tops 2Q forecast
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July 27, 1999: 12:21 p.m. ET
Earnings jump 45% on strong sales of herbicide, genetically modified seeds
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NEW YORK (CNNfn) - Monsanto Co. beat Wall Street forecasts Tuesday with a 45 percent jump in second-quarter earnings, boosted by strong growth in herbicide sales and the rapid adoption among U.S farmers of genetically modified crops.
The St. Louis-based chemical company reported earnings of $326 million in the second quarter of 1999, excluding discontinued operations, versus $224 million in the same period last year. Diluted earnings per share rose to 50 cents, beating the 45-cent analysts' consensus forecast and the 36-cent-a-share profit of a year earlier.
Including the discontinued items -- which consist of the artificial sweetener and biogum businesses that the company said earlier this month that it is trying to sell -- net income in the quarter rose to $344 million, or 53 cents a diluted share, from $257 million, or 43 cents, a year earlier.
Sales rose 23 percent to a record of $2.58 billion in the three months ended June 30.
"Our agricultural business, led by growth in Roundup herbicide and the rapid adoption of crops with our biotechnology traits, has significantly outperformed our competition in the face of extremely difficult industry conditions," Robert B. Shapiro, chairman and chief executive officer, said in a statement.
Net income for the first six months of the year rose to $476 million, or 73 cents per share, from $453 million, or 73 cents, in the 1998 period. Revenue climbed 28 percent to $4.90 billion.
Monsanto shares were up ½ to 40-1/2 in Tuesday midday trading.
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Monsanto
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