- freeimages.com/papaleguasMonsanto said new soybean products will be a main factor for growth this year, as global corn acreage is declining.
Monsanto reported a 34 percent drop in quarterly profit, partly due to lower corn acreage in South America and a shift in timing of some sales. However, the decline was not as steep as some analysts had expected.
Monsanto’s net sales fell to $2.9 billion in the first quarter, down from $3.1 billion a year ago. Sales of corn seeds and genetic traits were down 12 percent. However, sales of its soybean seed and trait products rose to $396 million from $267 million.
The company said new soybean products will be a main factor for growth this year, as global corn acreage is declining. Because of the decline in corn acreage, Monsanto said it expects second quarter earnings to fall 5 to 10 percent from a year earlier on an ongoing basis.
Monsanto said earnings fell to $243 million, or 50 cents per share, in the first quarter. That’s down from $368 million, or 69 cents per share, a year earlier. But that’s not as bad as some analysts were predicting; some had expected profits to drop as much as 50 percent. The company said it still expected earnings per share of $5.75 to $6 in fiscal 2015.