DOW JONES NEWSWIRES
Monsanto Co. (MON) said the weather and competition are
pressuring its Roundup herbicide operations as the agribusiness
giant sees earnings for the year at the lower end of its
forecast.
It also projected a profit for the quarter ending Saturday of
$1.15 a share, far below the $1.60 to $1.62 a share estimated in
February.
Shares fell 4.6% premarket to $81.35.
The company on Wednesday noted "cooler, wetter weather in some
parts of the U.S. corn belt has delayed the application timing of
Roundup and other glyphosate-based herbicides" while "generic and
other branded competitors continue to aggressively move
larger-than-expected volumes of lower-priced material."
Monsanto said usage is at the end of May was half of prior-year
levels.
The company, however, said its seed business is performing well,
with gross profit for the year expected to hit the high end of
Monsanto's target.
The company in April said Roundup earnings would peak this year,
profit from which have fueled acquisitions and helped Monsanto post
earnings growth. In the latest quarter, sales of Roundup and
similar products fell 21%.
Monsanto is due to release its fiscal third-quarter results June
24.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com