By Steve Gelsi
NEW YORK (Dow Jones) - Monsanto Co. on Tuesday cited the success
of its latest corn products in Argentina and Brazil in offsetting
an expected dip in its Roundup herbicide business as the company
issued profit growth targets for the coming year.
Monsanto said it's targeting 2009 operating earnings at $4.40 to
$4.50 a share, up from $3.64 a share in 2008.
The New York-based company expects earnings per share growth in
its second and third quarters of 10% to 12%.
The soy bean and corn seed maker is expected to earn $4.68 a
share in 2009, according to a survey of analysts by FactSet
Research.
The year of 2009 will likely mark the peak for Roundup
profitability, with expected gross profit of $2.4 billion to $2.5
billion
Monsanto expects to make "significant gains" in Brazil and
Argentina, as well as other foreign markets.
Sales increases in these countries in 2009 have been largely
driven by the successful 1.5-million-acre launch of the YieldGard
Corn Borer trait technology in Brazil, Monsanto said.
The company also cited a 2-million-acre double-trait offering of
YieldGard Corn Borer and Roundup Ready Corn 2 in Argentina.
"With these results, the company expects to gain one to two
share points in both countries in 2009 and 2010," Monsanto said.
"Growers in these two important markets already know the value our
biotech products provide and are ready to invest to lower risk and
improve yields."
Shares of Monsanto rose 5 cents to $83.71 in recent trading. The
stock hit a 52-week high of $145.80 on June 18 and a 52-week low of
$63.47 on Nov. 21.