Monsanto reports 34 percent drop in quarterly profit

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  Monsanto said new soybean products will be a main factor for growth this year, as global corn acreage is declining.

  From WATTAgNet:
  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. 

Monsanto, Dow enter corn technology agreement

Dow AgroSciences LLC, a subsidiary of The Dow Chemical Company, and Monsanto Company have entered into an agreement to create the next generation of advanced weed and insect control technology in corn. The financial terms of the deal were undisclosed.
Dow will license Monsanto's Corn Rootworm III, a third-generation corn rootworm technology that controls root-eating worms. Monsanto will license the use of Dow's new Enlist Weed Control System herbicide-tolerant trait in field corn, and will be the first licensee of the Enlist trait in corn.
The agreement provides an opportunity for next-generation products to build upon the current SmartStax platform for stacked-trait corn offerings, according to the companies. The technologies are expected to be introduced in sold competitively by both companies as next-generation weed and insect control products.
According to both Dow and Monsanto, the agreement paves the way for the U.S. introduction (pending regulatory approvals) of new next-generation SmartStax products by the end of the decade.

Monsanto net income up in second quarter

Due to continued growth of its global corn business and positive performance of its agricultural productivity segment, Monsanto saw its net income up in the second quarter of 2013 over 2012, US$1.483 million compared to $1.211 million, according to the company's latest financial report. The company's second half is also up over 2012, at $1.822 million compared to $1.337 million.
"Our performance underscores our expectation for a third consecutive year of strong earnings growth and reinforces our opportunities for the future, as well," said Hugh Grant, chairman and CEO of Monsanto. The company has raised its full-year ongoing earnings per share guidance to $4.40–$4.50 on the strength of its results.
Monsanto expects net cash provided by operating activities to be $2.9 billion to $3.3 billion, and net cash required by investing activities to be $1.1 billion to $1.3 billion for fiscal year 2013.

Monsanto joins World Business Council for Sustainable Development

Monsanto Company has joined the World Business Council for Sustainable Development, and is offering the council's business ecosystems training course globally for employees. The course is designed to enhance employees’ awareness and understanding of the links between ecosystems and business.
“In joining the WBCSD, Monsanto is taking an important step along a continuum toward developing a more sustainable agriculture system — one that improves our daily lives, respects our global environment and recognizes the importance of the world’s small-holder farmers,” said Peter Bakker, president of the council. “We must find new ways to protect soils, enhance ecosystems and optimize land use in ways that are environmentally sound. And we must move toward a future vision for agriculture where absolutes become as out of place as a one-size-fits-all approach to farming.”
Hugh Grant, chairman and CEO at Monsanto, will represent the company as a World Business Council for Sustainable Development council member. Jerry Steiner, executive vice president of sustainability and corporate affairs at Monsanto, is the council liaison delegate. Gabriela Burian, director of sustainable agriculture ecosystems at Monsanto, leads the company’s integration and implementation of the council's ecosystem training and tools.

Rootworms resistant to Monsanto corn in Illinois, Iowa

Rootworms in Illinois and Iowa have become resistant to an insecticide produced by Monsanto Co. corn, and four more states (South Dakota, Wisconsin, Minnesota and Nebraska) likely have resistant worms, according to the U.S. Environmental Protection Agency.
The resistance finding is based on a test developed at Iowa State University rather than the regulatory definition, which is “flawed” and should be changed, said the EPA in a report examining Monsanto’s product. At least 23 counties have damaged fields that need to be tested for resistance.
Kelly J. Clauss, a Monsanto spokeswoman, said the company is working with growers to reduce the number of fields with unexpected damage, a sign of suspected resistance. “Corn rootworm resistance is suspected, but not confirmed, according to the regulatory definition of resistance,” said Clauss. “We are very much in line with the EPA in terms of what needs to be done.” The EPA recommended Monsanto work with the agency to revise the definition of confirmed resistance by March 31. Meanwhile, Monsanto has agreed to transition growers from Yieldgard to SmartStax corn, which has a second mode of action for controlling rootworms.

Monsanto reports $339 million net income in first quarter 2013

Monsanto Company saw $339 million in net income in the first quarter of its fiscal year 2013, up over the $126 million in the same period of 2012, reflecting contributions from the continued expansion of its Latin American corn business, early momentum in its U.S. seeds and traits business and performance of its agricultural productivity segment, according to the company.
Net sales for corn seeds and traits showed an upswing where other categories showed slight downturns; $1.139 billion in the first quarter of 2013 compared to 2012's $895 million. "We've achieved a successful start to the year, with contributions from multiple areas that speak to the strength of our global business and provide confidence in our ability to realize a third consecutive year of significant growth," said Hugh Grant, chairman and CEO for Monsanto. "The momentum in our business is also seen in our record research and development progress. Through continued innovation in our integrated yield pipeline, we remain committed to delivering cutting-edge solutions that will bring additional value to our customers."
Monsanto said it expects full-year 2013 earnings per share guidance on an as-reported basis in the range of $4.31 to $4.41 per share. The company also expects net cash provided by operating activities to be $2.9 billion to $3.3 billion, and net cash required by investing activities to be $1.1 billion to $1.3 billion for fiscal year 2013.

China turns to Monsanto, others to boost corn yields

With China's corn demand growing steadily, the country's government has approved the use of more hybrid seed varieties like those from Monsanto Co., DuPont Pioneer and Syngenta AG to boost yields, according to reports.
China imported a record 5.5 million metric tons of corn in 2011–2012, but with the new hybrid seeds some domestic farmers are already reporting yields at double the average five metric tons per hectare. China's corn crop is forecast at a record 200 million metric tons for the current year, according to the U.S. Department of Agriculture. "My view is that within the next 7–10 years the gap in terms of demand and supply will probably be reduced to close to zero if the technology can reach the farmer," said Diego Diz, China corn marketing lead for Monsanto.
China is under significant pressure to meet the growing demand for meat, and the corn to feed the animals that supply it. "Over the next 15 years, China needs 80–100 million metric tons of corn, additional corn, a year," said Hardeep Grewal, Syngenta's head of corn marketing for the Asia-Pacific. "It means yields have to go up 50–60 percent." Hybrids have modernized planting as some seed firms guarantee 95 percent germination. Crop density, which has a direct impact on production, is up by around half to 60,000 plants per hectare from five years ago, though still lagging behind the U.S. level of around 80,000. New varieties also mean reduced fertilizer use and improved water efficiency — a critical factor in the increasingly water-stressed northeast.
By 2025, much of China's northeast will become either severely or extremely water stressed, according to the Aqueduct Water Risk Atlas managed by the World Resources Institute in Washington. Water shortage was one factor cited by China's agriculture minister as a threat to the country's ability to feed itself, along with growing land and labor shortages. "To ensure grain security ... We will breed a new type of agricultural player and develop proper-scale mechanized farming," said Han Changfu at a session of the ruling Communist Party congress.

Study insufficient to question safety of genetically modified corn

A recent study that called into question the safety of Monsanto's NK603 genetically modified corn did not provide sufficient evidence to reconsider existing safety approvals, according to France's government.
The study, conducted by researchers at the University of Caen, said rats that fed on the corn were at higher risk of suffering tumors, organ damage and premature death. In response, France's government requested the opinion of the National Agency for Sanitary Safety of Food, Environment and Labor, ANSES, and biotechnology advisory council HCB. Both agencies determined that the study did not demonstrate its findings conclusively.
"On this basis, there is therefore no need to go back on the authorizations issued for the NK603 maize and the Roundup weed killer," they said. The French government has, however, called for an overhaul of EU procedures for approving genetically modified varieties of corn and pesticides, and reaffirmed its ban on growing genetically modified crops.

European Food Safety Authority rejects study questioning Monsanto corn

The European Food Safety Authority has concluded that a recent paper raising concerns about the potential toxicity of Monsanto Co.'s genetically modified maize NK603 and of a herbicide containing glyphosate is of insufficient scientific quality to be considered as valid for risk assessment.
The authority's initial review found that the design, reporting and analysis of the study, as outlined in the paper, are inadequate. To enable the fullest understanding of the study the authority has invited authors Séralini et al. to share key additional information. “Some may be surprised that the EFSA’s statement focuses on the methodology of this study rather than its outcomes; however, this goes to the very heart of the matter," said Per Bergman, the director of scientific evaluation of regulated products and the one who led the authority's work. "When conducting a study it is crucial to ensure a proper framework is in place. Having clear objectives and the correct design and methodology create a solid base from which accurate data and valid conclusions can follow. Without these elements a study is unlikely to be reliable and valid.”
The preliminary review is the first step in a two-stage process. A second analysis will be delivered by the end of October, and will take into account any additional information from the study authors, who will be given an opportunity to supply study documentation and procedures to the European Food Safety Authority to ensure the broadest possible understanding of their work. It will also include an overview of Member State assessments of the paper and an analysis from the German authorities responsible for the assessment of glyphosate.

European Food Safety Authority rejects study questioning Monsanto corn

The European Food Safety Authority has concluded that a recent paper raising concerns about the potential toxicity of Monsanto Co.'s genetically modified maize NK603 and of a herbicide containing glyphosate is of insufficient scientific quality to be considered as valid for risk assessment.
The authority's initial review found that the design, reporting and analysis of the study, as outlined in the paper, are inadequate. To enable the fullest understanding of the study the authority has invited authors Séralini et al. to share key additional information. “Some may be surprised that the EFSA’s statement focuses on the methodology of this study rather than its outcomes; however, this goes to the very heart of the matter," said Per Bergman, the director of scientific evaluation of regulated products and the one who led the authority's work. "When conducting a study it is crucial to ensure a proper framework is in place. Having clear objectives and the correct design and methodology create a solid base from which accurate data and valid conclusions can follow. Without these elements a study is unlikely to be reliable and valid.”
The preliminary review is the first step in a two-stage process. A second analysis will be delivered by the end of October, and will take into account any additional information from the study authors, who will be given an opportunity to supply study documentation and procedures to the European Food Safety Authority to ensure the broadest possible understanding of their work. It will also include an overview of Member State assessments of the paper and an analysis from the German authorities responsible for the assessment of glyphosate.

South Africa group calls for Monsanto modified corn ban

Monsanto Co.'s genetically modified NK603 corn is hazardous to the health and should be banned, according to South Africa's African Centre for Biosafety.
The centre has asked South African authorities to ban the corn's cultivation, import and export based on a French study that claims the corn can cause tumors, liver damage and kidney damage in laboratory rats. “We urge the South African government to take the necessary steps to protect its citizens,” said the centre in a letter to the minister of agriculture, forestry and fisheries.
But the study “does not meet minimum acceptable standards for this type of scientific research,” said Thomas Helscher, a spokesman for Monsanto. The methods used don’t conform to Organization for Economic Co-Operation and Development standards, the source and quality of the corn are unclear and details on dietary intake absent, he said.
France has asked its national food-security agency to look into the study, and Russia's government has suspended sales of NK603 corn pending further information.

Paraguay to approve Monsanto soybean seeds by year end

Paraguay expects to approve Monsanto's genetically modified Roundup Ready 2 soybean seeds in time for the 2012–2013 planting season in October in a bid to expand its presence in the global grains export market.
The country gathered 4.3 million metric tons of soy in the 2011–2012 season, a reduced number due to drought, but expects its yields to increase to 8 million metric tons with the addition of Monsanto's seeds, said Agriculture Ministry trade chief Santiago Bertoni. "With this step we will improve the technology balance between ourselves and other countries, improving our ability to compete," said Bertoni. "The 2013 harvest will include fields planted with these seeds."
Paraguay is currently fourth in global soy exports, behind the U.S., Brazil and Argentina.

Monsanto awarded $1 billion from DuPont for soybean patent infringement

A U.S. district court jury has awarded Monsanto Co. $1 billion in a patent-infringement case against The DuPont Co., which focused on whether DuPont infringed on Monsanto's patent for developing genetically modified soybean seeds that can withstand the weed killer Roundup.
The jury determined that a subsidiary of DuPont willfully violated Monsanto's patent on its Roundup Ready technology. DuPont said that it plans to appeal the decision and expects it to be overturned. Monsanto originally sued DuPont in 2009, claiming it was illegal for DuPont to use its technology without authorization in developing a line of soybean seeds called Optimum GAT. DuPont abandoned development and never sold any of the seeds.
DuPont has its own patent case pending against Monsanto.

Monsanto sees growth, net income up through May

Monsanto's net income rose to $937 million the three months ending May 31, an increase over the $692 million the company posted during the same time in 2011, according to Monsanto's latest report.
The company is expecting further growth due to a current drought in the U.S. Midwest, the worst the region has seen in a decade, because the conditions may demonstrate Monsanto's products' superior yields and performance. “Our genetics tend to do well in warm, dry conditions,” said CEO Hugh Grant. “It’s not something that you hope for, but we have an edge in that.” The company could also benefit from competitors losing stock due to the drought, where Monsanto can bring in seeds from Latin American stocks.
Monsanto will raise enough seed for a 96-million-acre corn crop, 2 million to 4 million acres more than expected in the company’s forecast for a “mid-teens” percentage rise in 2013 earnings, said Chief Financial Officer Pierre Courduroux.

France bans growing of Monsanto genetically modified corn

France has temporarily banned the growing of Monsanto Co.'s genetically modified corn MON810 ahead of guidance by European regulators on the crop's safety and after the European Commission told France it doesn't plan any urgent measures ahead of the opinion, according to France's agriculture and environment ministries.
In February, France asked the EU to suspend approval for MON810, citing scientific studies that show growing the corn variety may pose "important risks" to the environment. “Because of the proximity of the planting period, the Agriculture Ministry has decided today to take a precautionary measure that means to temporarily prohibit the cultivation of the corn MON810 on the national territory in order to protect the environment,” said a ministry statement.
Monsanto has said it does not market MON810 in France because the company seeks planting where it has a broad farmer and government support.

France calls for suspension of Monsanto genetically modified corn

France has asked the European Commission to suspend authorization to plant Monsanto's genetically modified MON810 corn, the only genetically modified corn approved for planting in the European Union, according to reports. France banned the growing of MON810 corn in 2008, citing environmental risks, but the ban was overturned by France's Council of State in November 2011. According to the French government, the authorization should be suspended due to "significant risks for the environment" shown in recent scientific studies.

USDA approves Monsanto drought-resistant GM corn

The U.S. Department of Agriculture has approved Monsanto's genetically engineered, drought-resistant corn for sale in the U.S. after reviewing environmental and risk assessments, public comments and research data from the company, according to reports. The variety, known as MON 87460, "is no longer considered a regulated article under our regulations governing the introduction of certain genetically engineered organisms," said the USDA. The major U.S. area for adoption of drought-tolerant corn will be the Plains, which produces one-quarter of the country's corn crop, according to Monsanto estimates.

Food safety organizations calling for ban on Monsanto GMO corn

Food safety, health and environmental organizations are petitioning for a ban on Monsanto's new genetically modified sweet corn, which is not being labeled as genetically altered from conventional corn, according to reports.
The consumer petition, sponsored by a coalition that includes the Center for Environmental Health and the Center for Food Safety, is being taken to national retail grocery stores and top canned and frozen corn processors to press them to ban the corn. The corn has been altered to tolerate treatment of Monsanto's Roundup herbicide, and to fight off insects that might attack the plants.
Monsanto has expressed surprise at the controversy. "The safety and benefits of biotech sweet corn products — as well as other biotech crops — is well established," said Monsanto spokeswoman Danielle Stuart. Critics have expressed concern that genetically altered crops may pose environmental and health risks and may fuel a rise in "super weeds" that are herbicide-resistant.

DuPont sues Monsanto over alleged corn patent infringement

DuPont's Pioneer seed unit has sued Monsanto Co., claiming the company has infringed on patents that help genetically modified corn seeds germinate.
In its lawsuit, filed in United States District Court for the Southern District of Iowa, Pioneer Hi-Bred International claims that it owns patents on a method "of enhancing the vigor of maize seeds" by defoliating the plant at a particular point after pollination but before harvest, and on a maize seed and stand of maize seeds that have such enhanced vigor. The suit alleges that Monsanto has been using the methods protected by Pioneer's patents and seeks reimbursement by Monsanto for any profits gained from the sale of products made with the patents, as well as damages.
Monsanto issued a statement following the lawsuit's filing, calling it "baseless" and "without merit," and said the approach covered by DuPont's patent is not used in any of Monsanto's production fields.
The case is Pioneer Hi-Bred International Inc v. Monsanto Co, No. 4:11-cv-00497.

Monsanto reports fourth quarter net loss of $112 million

Monsanto Co. reported a fiscal 2011 fourth-quarter net loss of $112 million and said that it must restate earnings for the last two years because of a federal investigation into its herbicide sales.
Monsanto was prompted to restate earnings from the fourth quarter of fiscal year 2009 through the third quarter of fiscal year 2011 after U.S. Securities and Exchange Commission findings that the company paid dealers of its Roundup Herbicide. Monsanto did not provide revenue or income comparisons to last year's fourth quarter because of the pending earnings revisions. Last year, the company reported a quarterly loss of $233 million, with $1.95 billion in revenue.
The company said the restatements could reduce its reported net income in the fiscal year 2009 by 5 cents per share to 10 cents per share. The impact on earnings for fiscal year 2010 could range from a loss of 2 cents per share to a gain of 3 cents per share.
For the fourth quarter of 2011, Monsanto said sales in its seeds and genomics division jumped 39% compared with 2010, to $1.4 billion. Corn seed sales rose 58% from 2010 to $671 million during the quarter. For the full fiscal year 2011, Monsanto reported net income of $1.61 billion, or $2.96 a share, on $11.82 billion in revenue.