Agricultural products developer Monsanto Co. (MON) announced Wednesday morning that profit for the first quarter climbed from last year, propelled by higher margins and greater demand for its products in Latin America. Earnings per share for the quarter topped analysts' expectations, while top line grew 29% and came in above Street projections. Based on the strong performance, the company lifted its fiscal year 2009 earnings forecast. Following the announcement, the company's shares are trading up more than 13%.
Monsanto is an agricultural company, which applies innovation and technology to help farmers around the world produce more while conserving more. The company also helps farmers grow yield sustain ably so that they can be successful, produce healthier foods, better animal feeds and more fiber, while also reducing agriculture's impact on the environment.
In a statement, chairman, president and chief executive officer, Hugh Grant said, "The ongoing demand from farmers for our world-class technologies has allowed us to deliver such strong earnings growth while staying fully invested in our research and development pipeline."
First Quarter Results
The St. Louis, Missouri-based company reported net income of $556 million or $1.00 per share for the first quarter, more than two-fold increase from $256 million or $0.46 per share in the prior-year quarter.
Results for the latest quarter included $44 million or $0.08 per share, in discrete tax items.
On an ongoing basis, income from continuing operations climbed to $546 million or $0.98 per share from the year-ago quarter's $250 million or $0.45 per share.
On average, twelve analysts polled by First Call/Thomson Financial expected the company to report earnings of $0.59 per share for the first quarter. Analysts' estimates typically exclude special items.
Total net sales for the quarter grew 29% to $2.65 billion from $2.05 billion in the same quarter last year, but came in above five Wall Street analysts' consensus estimate of $2.41 billion.
The company attributed the strong sales growth to increased demand in Brazil for roundup and other glyphosate-based herbicides, higher revenues in the U.S. and Brazil for corn seed and traits, as well as strong sales growth of soybean seeds and traits in the U.S. from strong early-season deliveries.
Segmental Details
Sales for the seeds and genomics segment, consisting of global seeds and related traits business, and biotechnology platforms, surged 31% to $1.10 billion from last year's $0.84 billion, driven by double-digit sales growth in Soybean seed and traits, corn seed and traits, cotton seed and traits, as well as Vegetable seeds.
Agricultural productivity segment, consisting of crop protection products and lawn-and-garden herbicide products, posted quarterly sales of $1.55 billion, 28% higher that last year's $1.21 billion, driven mainly by improved pricing and sales volumes of roundup and other glyphosate-based herbicides in Brazil along with higher net selling prices in all major world areas.
Other Metrics
Income from operations for the latest quarter surged to $748 million from $383 million in the prior-year quarter, while total operating expenses was $802 million, up from $656 million in the year-ago quarter.
Gross profit for the quarter advanced to $1.55 billion or 59% of revenues from $1.04 billion or 51% of revenues in the first quarter of fiscal 2008.
The company ended the first quarter with cash and cash equivalents of $1.34 billion, compared to $1.62 million at end of the prior-year quarter.
Last month, Monsanto completed its $290 million acquisition of Aly Participacoes Ltda., which operates the sugarcane breeding and technology companies, CanaVialis S.A. and Alellyx S.A., based in Brazil. The acquisition extends Monsanto's presence in Brazil, the world's largest producer of sugarcane, the largest exporter of finished sugar and the world's second-largest producer of ethanol after the U.S.
Looking ahead……
The company noted that its first quarter results typically and primarily reflects the impact of its Latin American businesses. However, Monsanto's second and third quarters are expected to be the primary drivers for the full-year results. These quarters reflect both the relative size of the U.S. business and the importance of its seeds and traits business to Monsanto's earnings.
"Our Latin American business once again displayed its strength and set the pace for a great fiscal 2009, giving us confidence to raise our earnings projections and helping us take another solid step toward fulfilling our 2012 gross profit commitments," Grant added.
Bolstered by its first quarter results, Monsanto boosted its fiscal 2009 earning outlook, on an ongoing basis, to a range of $4.40 to $4.50 per share from prior guidance in the range of $4.20 to $4.40 per share. The Street is looking for full-year 2009 earnings of $4.56 per share.
Stock Quote
In Wednesday's regular trading session, MON is trading at $83.10, up $9.88 or 13.49% on a volume of 12.16 million shares. In the past 52-week period, the stock has been trading in a broad range of $63.47 to $145.80.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.