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Pioneer Hi-Bred warning
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July 1, 1998: 1:29 p.m. ET
World's largest seed company says '98 net may be lower than expected
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NEW YORK (CNNfn) - Shares of Pioneer Hi-Bred International Inc., the world's largest seed company, fell 12 percent Wednesday after the company warned investors that its 1998 earnings may be lower than expected.
In its fiscal third quarter, ended May 31, Pioneer earned $366 million, or $1.50 per share on a fully diluted basis, slightly exceeding First Call estimates of $1.49 per share. Revenue totaled $1.31 billion.
A year ago, the company reported earnings of $332 million, or $1.34 per share, on revenue of $1.28 billion.
However, Pioneer cautioned that its overall earnings in fiscal 1998 may not reach analysts' expectations of $1.07 to $1.20 per share.
"Final earnings for 1998 may be at or below the lower end of the . . . range established earlier, due to the strength of the U.S. dollar, the competitiveness of the North American market and challenges outside of North America," said Charles S. Johnson, chairman, president and chief executive officer.
In the first nine months, Pioneer earned $319 million, $1.26 per share, on revenue of $1.69 billion, up from $285 million, $1.15 per share, on revenue of $1.64 billion.
The company said the strong U.S. dollar reduced 1998 operating income so far by more than $30 million.
Wall Street took the news poorly. By mid-session, Pioneer stock (PHB) was trading down 4-5/8, or 12.58 percent, at 36-3/4. 
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Pioneer Hi-Bred
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