Monsanto's Loss Widens to $97 Million

AP 7jan04

ST. LOUIS—Monsanto Co.'s loss widened to $97 million in its fiscal first quarter as big charges more than offset the impact of a 22 percent increase in sales.

The agricultural products company said Wednesday its loss amounted to 37 cents a share for the three months ending Nov. 30 versus a loss of $18 million, or 7 cents per share, a year earlier.

Excluding a $69 million goodwill write-off related to the company's global wheat business, and restructuring charges of $42 million, the company would have earned $14 million. On a per-share basis, the charges amounted to 41 cents a share. Without them, the company would have earned 4 cents a share, beating the forecast of a profit of 1 cent a share by analysts surveyed by Thomson First Call.

Sales rose to $1.03 billion from $846 million, largely due to higher sales of Roundup herbicide in the U.S. and Brazil. Roundup is the nation's best-selling herbicide.

"As we begin the major selling season for seeds in the United States, early indications point to another solid showing for Monsanto's branded seeds and technology traits in this major agricultural market," said Hugh Grant, Monsanto's president and chief executive officer.

Monsanto stocks were up 71 cents, or 2.5 percent, to $28.82 in morning trading on the New York Stock Exchange.

Sales for Monsanto's seeds and genomics segment rose 5 percent to $385 million from $365 million. Sales for its agricultural productivity segment, which includes Roundup and other herbicides, rose 34 percent to $643 million from $481 million.

Monsanto officials reiterated that the company expects earnings per share for fiscal 2004, including estimated restructuring charges and good write-offs, in the range of 55 cents to 65 cents per diluted share.

Monsanto's 1Q Earnings Hurt By Charges

DESIREE J. HANFORD / Dow Jones Newswires 7jan04

ST. LOUIS—Monsanto Co. (MON) posted a wider earnings loss in its fiscal first quarter than it did in the year-ago period, hurt by a write-off of goodwill and restructuring charges.

The agricultural and biotechnology company lost $97 million, or 37 cents a share, for the quarter that ended Nov. 30. That compares with a loss of $18 million, or 7 cents a share, in the year-ago period.

The most recent first-quarter earnings include $69 million, or 26 cents a share, for write-off of goodwill associated with the global wheat business. Charges of $42 million, or 15 cents a share, for restructuring and discontinued businesses also were included.

Excluding those charges, Monsanto earned 4 cents a share in the latest quarter.

Analysts polled by Thomson First Call expected Monsanto to earn a penny a share in the first quarter.