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Monsanto seed, genomics sector drives fourth-quarter net losses

Agriculture.com Staff 10/11/2006 @ 12:02pm

Monsanto reported net sales of $1.4 billion for the fourth quarter of fiscal year 2006, which was nine percent higher than sales in the same period in fiscal year 2005 despite fourth-quarter net losses higher than a year ago, according to a company release.

Earnings were primarily driven by higher sales of Roundup and other glyphosate-based herbicides in the United States as well as higher sales of the company's corn products. Results in the quarter were partially offset by lower U.S. soybean trait revenues.

The company reported record net sales of $7.3 billion in fiscal year 2006, which was 17% higher than sales in fiscal year 2005.

These earnings are despite a growing net loss for the fourth quarter of the 2006 fiscal year. The company reported a net loss of $144 million in the fourth quarter of fiscal year 2006, compared with a reported net loss of $125 million in the same period last year.

The decrease in the fourth quarter income related primarily to lower sales in the seeds and genomics segment. Losses per share for the fourth quarter was $0.27.

For fiscal year 2006, the company reported a net income of $689 million, significantly higher than net income for fiscal year 2005. The increase in fiscal year 2006 related primarily to higher revenue from the company's U.S. seeds and traits business.

Despite higher raw material costs for Roundup and other glyphosate-based herbicides associated with higher energy costs, and increased costs in Brazil as result of a strengthening Real, gross profit for the segment remained in line with the company's guidance.

Monsanto reported net sales of $1.4 billion for the fourth quarter of fiscal year 2006, which was nine percent higher than sales in the same period in fiscal year 2005 despite fourth-quarter net losses higher than a year ago, according to a company release.

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