North Central Ohio, across the Corn belt ! | By Liana B. Baker
CHICAGO (MarketWatch)-- Monsanto shares fell 7.3% to $48.82 on Thursday after the global seed producer said it was cutting its earnings outlook for this year. Monsanto /quotes/comstock/13*!mon/quotes/nls/mon (MON 50.87, +0.60, +1.19%) said it now expects 2010 earnings of $2.15 a share to $2.41 a share, or $2.40 to $2.60 a share on an adjusted basis. The current estimate of Wall Street analysts was $3.09 a share for Monsanto, according to a survey by FactSet Research. The company said lower profit in the Roundup weed-killing business was to blame as there has been "upheaval in the glyphosate industry."
Quote (For years, Monsanto's (MON ) blockbuster herbicide Roundup was the unassailable market leader. But that started to change in the fall of 2000, when the U.S. patent expired. Since then, sales have been falling steadily, despite the St. Louis-based chemicals-and-seeds outfit's best efforts to price Roundup more competitively with copycat herbicides and convince farmers to buy variations of the original product. In fiscal year ended August, 2003, Roundup sales fell to $1.8 billion, down from $2.5 billion in fiscal 2001.
Investors, however, probably shouldn't panic. The decline is moderating, analysts say, while Monsanto's other business -- genetically modified seeds -- generated $1.9 billion in sales in fiscal 2003, fully 39% of $4.9 billion in total revenues and up 22% from fiscal 2002. As this shift progresses, profits should rise, too: ( The seeds business has an operating margin of 16%, ) ( vs. about 11% for Roundup and Monsanto's other chemical products. )
Even though they, Mon. Are Still blaming The ( weed killing business ) ?
July will tell the story concerning actual seed sales for the North American continent
So 3rd quarter 2010 could tell the Tale
You mention channel !!!
Now How many Pick Up Trucks can One lease to give to farmers for Holding their Seed order the same as the 2009 season ???
and How many seed storage barns can you build across the Country ???? If they are ?
Channel was? Is, to be the Cash Cow for Mon. that Dekalb division maybe was Not ???
Time will Tell ????
Edited by soil-life 5/29/2010 09:40
|
Monsanto stock is now a buy
