Monsanto Centralizes Roundup Unit, 'Redefines' Future Role
June 24 2009 - 9:39AM
Dow Jones News
Monsanto Co. (MON) is expected to name a single global head for
its crop nutrients business as part of a restructuring announced
Wednesday.
The U.S. agrichemicals group will turn its Roundup and other
herbicides operation into a standalone unit amid intensifying
competition faced by a business currently run by regional
heads.
Chief Executive Hugh Grant has consistently said that the
company is defined by its high-technology seed business rather than
the herbicides and crop protection products that accounted for 44%
of revenue and 38% of gross profit in fiscal 2008.
However, the company appears committed to retaining a business
whose strong profit contribution has in the past been described by
Grant as a "windfall" to support growth elsewhere in the
business.
"We're currently focused on the process of redefining Roundup
and its role in Monsanto's future," said a company spokesman. "It's
an excellent business that needs to be run differently in the
current competitive environment."
Monsanto shares were 1.1% higher at $80.17 in pre-market trade
after reporting a 14% drop in fiscal third-quarter earnings.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135;
doug.cameron@dowjones.com