Monsanto reported its second-quarter results which include a profit more than doubled from last year.

Second-quarter sales increased 27 percent, primarily because of higher corn and soybean trait revenues in the United States, increased corn seed sales in the United States and the Europe-Africa region, and higher revenues for Roundup and other glyphosate-based herbicides in all major world areas. Similarly, sales for the first half of fiscal year 2005 increased 18 percent, benefiting from strong trait revenues, seed sales, and overall Roundup and other glyphosate-based herbicide revenues.

Reported net income for the quarter was $373 million, which includes after-tax restructuring charges of $6 million and income on discontinued operations of $2 million associated with the planned sale of the environmental technologies businesses. For the first half of 2005, reported net income was $333 million, including a pre-tax charge of $284 million ($181 million aftertax) to establish a reserve associated with the Solutia Inc. bankruptcy proceedings, a tax benefit of $106 million ($86 million in discontinued operations and $20 million in continuing operations) as a result of the loss incurred on the European wheat and barley business, $7 million in after-tax restructuring charges, and income on discontinued operations of $2 million.

Monsanto Chairman, President and Chief Executive Officer Hugh Grant said, “The second quarter is the most important single quarter in our fiscal year. We believe the strong results this quarter, and so far this year, emphasize both the value of our leadership position in the seeds and traits market, and the continued opportunity we see as the momentum in our seeds and traits business helps propel our overall business growth.”

Second-Quarter and First-Half 2005 Performance Summary:

Net sales increased 27 percent to $1.9 billion in the second quarter primarily because of higher corn and soybean trait revenues in the United States, increased corn seed sales in the United States and the Europe-Africa region, and higher revenues for Roundup and other glyphosate-based herbicides in all major world areas. For the quarter, sales in the Seeds and Genomics segment increased by 35 percent on the strength of increased seed and trait sales. There was also a 17 percent improvement in sales in the Agricultural Productivity segment, as sales of branded Roundup herbicides and other glyphosate-based herbicides increased.

For the first half of 2005, net sales approached $3 billion, an 18 percent improvement compared with net sales in the same period last year. The drivers for the first-half sales included increases in U.S. corn and soybean trait revenues, and increased corn seed sales in the United States and the Europe-Africa region. Additionally, sales of Roundup and other glyphosate-based herbicides outside the United States were higher for the first half of 2005, particularly in Brazil and Europe.

Net income and earnings per share: Monsanto recorded second-quarter fiscal year 2005 net income of $373 million, or $1.37 per share, compared with net income of $154 million, or $0.57 per share, in the second quarter of fiscal year 2004.

Murdok | Breaking eBusiness News
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