Monsanto reports ‘strong’ results, says Syngenta takeover still on
Monsanto reports that it had a strong third quarter, with net sales, gross profit and earnings per share all up compared to its third quarter of 2014.
The company operates on a fiscal year basis with its 2015 year beginning on September 1, 2014.
Net sales for the agricultural productivity segment of the company for the third quarter were up $1.4 billion to $4.5 billion compared to the same time last year.
Monsanto’s gross profit increased in the third quarter from $2.3 billion to $2.7 billion, and its earnings per share increased from $1.62 to $2.39.
Hugh Grant, Chairman and CEO of Monsanto, said that the challenges facing the world’s food supply continue to evolve.
“The growing population, along with our volatile and changing climate, place ever-increasing burdens on sustainable global food production.
“Equipping farmers with the right set of innovations that will help solve tomorrow’s food challenges today requires more than a new company – it requires a new vision and approach,” he said.
In its outlook for the rest of the 2015 fiscal year, the company says its fourth-quarter results are now expected to be break-even.
In its outlook for its seeds and genomics segment, Monsanto says launch plans for Roundup Ready 2 Xtend soybeans also continue and that European import approval is “in hand!.
Earlier this month, France banned the sale of Roundup from garden centres.
The ban followed the classification of glyphosate, the active ingredient in Roundup, as “probably carcinogenic to humans” by the UN.
Monsanto’s Chariman and CEO has said that the company’s proposal to combine with Syngenta is an exciting logical next step for its business, offering the opportunity to accelerate innovation and support a more diverse group of farmers around the world.
This is despite Syngenta rejecting Monsanto’s second takeover offer to acquire the company at a price of 449 Swiss Francs (€443) per Syngenta share with approximately 45% in cash.
Syngenta said that the only change to Monsanto’s first proposal was to add “a wholly inadequate reverse regulatory break fee”.