Global agribusiness company Monsanto Co posted a higher-than-expected quarterly profit on Wednesday, sending share prices higher as the company said early U.S. spring planting and a 15 percent sales jump boosted its full-year outlook.
"We've seen contributions from growth across crops and geographies, which position us well to deliver high-teens ongoing earnings growth this year," Monsanto Chairman Hugh Grant said in a statement.
Monsanto, which is the world's largest seed company, said it set a record for its seeds and genomics unit, driving net income for the second quarter to $1.2 billion from $1 billion a year before.
Diluted earnings per share came in at $2.24 cents versus $1.88 a year ago. Earnings per share from continuing operations totaled $2.28, up from $1.87 a year ago and above the $2.12 expected by analysts.
Corn sales totaled $2.8 billion, up from $2.4 billion a year earlier, leading all other products as both Latin American and U.S. farmers were eager buyers of Monsanto's genetically modified seed products.
Soybean seed sales also grew, by 12 percent to $689 million. But cotton sales fell slightly and vegetable seed sales dropped 6 percent due primarily to a decrease in the European market.
The company raised its full-year ongoing EPS guidance to a range of $3.49 to $3.54 per share. Full-year 2012 EPS guidance on an as-reported basis is expected in the range of $3.45 to $3.50.
The company took a 5 cent per share adjustment in the second quarter for a settlement on litigation involving claims of health and environmental damage tied to former chemical plant operations in West Virginia.
Monsanto also raised full-year free cash flow guidance to a range of $1.6 billion to $1.8 billion. The company expects net cash provided by operating activities to be $2.5 billion to $2.8 billion, and net cash required by investing activities to be $900 million to $1 billion for fiscal year 2012.
MORE ACRES FOR MONSANTO
Monsanto said though spring planting has yet to get into full swing in the United States, it expects acres of its Genuity Roundup Ready 2 Yield soybeans and Genuity reduced refuge corn family to increase by more than 10 million acres each this year.
That would bring the acreage totals into the range the company was projecting for 2012 of a total of 22 million to 24 million acres for the Genuity reduced refuge corn family, and the 27 million to 30 million acres targeted for the specialty Roundup Ready 2 Yield soybeans.
Shares rose more than 1 percent in early moves, up $1.03 at $82.83.
(Reporting By Carey Gillam in Kansas City; Editing by John Picinich)
Reuters
