By Tess Stynes
Monsanto Co. said its earnings fell 15% in the February quarter
as sales weakened, farmers planted fewer acres and a stronger U.S.
dollar pressured results.
The world's biggest seed company by sales has faced challenges
from farmers tightening their belts amid a steep decline in crop
prices.
For the year ending August, Monsanto said its per-share profit
guidance currently is trending at the lower end of its previous
estimate of $5.75 to $6, thanks to a decline in corn plantings and
a strengthening dollar.
The St. Louis-based company also has been contending with
consumer criticism of biotech foods and has been rebutting a World
Health Organization agency's classification of its trademark weed
killer as a potential carcinogen.
In the latest quarter, corn seed and trait sales fell 15% to
$2.91 billion. In a news release Wednesday, Monsanto said it
remains on track to hold or grow its branded corn-share footprint
in every major market despite the decline in acres of corn being
planted.
Soybean seed and traits sales remained a bright spot, increasing
7.7% to $883 million.
Sales in the agricultural productivity business, which consists
of crop-protection products and herbicides, fell 14% to $1.02
billion.
In all, Monsanto reported a profit for the quarter ended Feb. 28
of $1.43 billion, or $2.92 a share, down from $1.67 billion, or
$3.15 a share, a year earlier. Excluding items, the per-share
profit was $2.90, within the company's forecast for a decline
between 5% and 10%. Analysts had projected $2.93 a share.
Revenue decreased 11% to roughly $5.2 billion, below analysts'
expectations of $5.58 billion.
Write to Tess Stynes at tess.stynes@wsj.com
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