Monsanto posts ‘better than expected’ first quarter results
Monsanto has posted ‘better than expected‘ first quarter results for 2016 which it states delivered earnings per share (EPS) for the first quarter ahead of expectations.
“Operating expenses and soy bean sales in Brazil both were better than original expectations for the first quarter of fiscal year 2016,” a statement from the company said.
Net sales for the quarter decreased over the prior year’s first quarter to $2.2 billion.
Gross profit on an as-reported basis for the 2016 first quarter also decreased over the prior year period to $901m and it stated that as expected, the decline in the quarter is due to weaker foreign currencies, glyphosate pricing and lower corn volumes in Latin America.
Hugh Grant, Chairman and Chief Executive Officer (CEO) said that through focus and discipline, Monsanto remains confident in its ability to deliver on the targets and milestones it has established for the company in both the near term and through the next decade.
“In a challenging agriculture environment, we remain in a position of strength. It’s this strength that positions us to be a leading partner in an industry that will continue to change,” he said.
Monsanto expects full-year ongoing earnings per share (EPS) guidance to be at the lower half of the range of $5.10 to $5.60.
Ongoing EPS guidance reflects in part an estimated $0.60 to $0.70 of headwinds from currency, greater than previous estimates of $0.35 to $0.40, according to the company.
Full-year EPS guidance on as as-reported basis improved modestly to $4.12 to $4.79 which Monsanto attributes as a result of the anticipated timing of charges related to announced restructuring actions.
Monsanto expects this growth to be led by new global corn hybrid portfolio introductions, continued significant Intacta RR2 PRO soybean adoption and additional licensing opportunities in the range of $275m.
The company also expects the Agricultural Productivity segment to continue to deliver $900m to $1.1 billion of gross profit in fiscal year 2016 as the company stays consistent with its strategy to maintain a slight premium over generics.
IT expects operating expenses for fiscal year 2016, exclusive of restructuring expense and environmental and litigation settlements, to be flat versus fiscal year 2015.