Monsanto 4Q Loss Widens On Restructuring Charges

   DOW JONES NEWSWIRES 
 

Monsanto Co. (MON) posted a wider fiscal-fourth quarter loss on restructuring charges, while revenue dropped and overhead costs were slashed 35%.

Shares rose 2.2% to $77 as earnings excluding charges edged analysts' expectations, though sales fell short. The company also reiterated its recently issued downbeat forecast.

The company in June unveiled plans to separate its struggling Roundup and other herbicides into a new division. Last month, Monsanto doubled its job-cut plans to 8% of its work force. Monsanto is focusing on biotechnology research for future growth as Roundup revenue weakens amid tough competition from generic herbicides and lower global farm incomes.

However, last month the company said it could double its gross profit by 2012 from 2007 as it rolls out new genetically modified corn and soybean seeds. Genetically modified-seed projects have met resistance from environmental groups and scientists in a number of countries.

For the quarter ended Aug. 31, the company reported a loss of $284 million, or 43 cents a share, compared with a prior-year loss of $172 million, or 31 cents. Excluding restructuring-related and other charges, Monsanto had a 2-cent profit in the latest quarter, compared with a prior-year loss of 3 cents.

Revenue decreased 8.3% to $1.88 billion.

Analysts polled by Thomson Reuters most recently forecast earnings of 1 cent on revenue of $1.97 billion.

Gross margin fell to 45.6% from 46.8% amid the sales decline.

At its seeds and genomic segment, revenue fell 3.5%, pulled down by lower sales of soybean and cotton seeds and traits, despite gains at its larger corn and vegetable segments. At the operations that include herbicides, revenue slid 17%.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]