News

June 27, 2008

Giant Profit Rise From An Industry Giant

By Sally White

Shares doubled over the last year, latest quarterly profits up by 42 per cent – this company is in clover! In fact it is not too far off that, being one of the world’s largest agricultural operations. This is Monsanto, at a market cap of US$74 billion an industry whopper. Farmers’ desperation to increase yields is enabling it to sell record amounts of its herbicides and seeds.

Best known in Europe for its genetically modified seeds, which are fiercely opposed there, Monsanto has just reported net income in the third quarter up from US$570 million, or US$1.02 a share, to US$811 million and US$1.45 a share. Both were above analysts’ forecasts, but sales up 26 per cent at US$3.59 billion were not. Net income for the three-quarters traded so far this financial year is up by 83 per cent.

Monsanto’s guidance to investors is that earnings for the year will be...