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Monsanto leaders see major earnings growth ahead
Based on strong sales in the company's seed and traits business, Monsanto leaders say they expect financial performance to outpace expectations earlier this year.
Monsanto CEO Hugh Grant said this week he expects earnings to grow up to 25% beyond 2011 during the current fiscal year, with more growth expected into 2013.
"With continued strong sales in the third quarter, the performance we saw in the early part of the year has proven to be a powerful signal of even better results from some key businesses," Grant says.
Sales of key chemistries, namely the Roundup family, around the world helped drive the bullish outlook. Specific to the U.S., the early spring planting window coupled with increases in corn and soybean acres this year are encouraging more usage of Genuity corn products and Roundup Ready 2 Yield soybeans. The sales of both product families have eclipsed Monsanto officials' earlier expectations for this year, Grant says. And, the trend looks to continue at least through the next year.
"This year has been important confirmation of the momentum in our business, as we've taken advantage of the strong global acres and agricultural environment and delivered on the key business drivers we set as priorities," he says. "Looking beyond this year, we feel very good that the fundamentals driving 2012 carry into next year as well, and we have the strategic growth drivers in place to support continued growth in 2013."