Monsanto Centralizes Roundup Unit, 'Redefines' Future Role

Monsanto Co. (MON) is expected to name a single global head for its crop nutrients business as part of a restructuring announced Wednesday.

The U.S. agrichemicals group will turn its Roundup and other herbicides operation into a standalone unit amid intensifying competition faced by a business currently run by regional heads.

Chief Executive Hugh Grant has consistently said that the company is defined by its high-technology seed business rather than the herbicides and crop protection products that accounted for 44% of revenue and 38% of gross profit in fiscal 2008.

However, the company appears committed to retaining a business whose strong profit contribution has in the past been described by Grant as a "windfall" to support growth elsewhere in the business.

"We're currently focused on the process of redefining Roundup and its role in Monsanto's future," said a company spokesman. "It's an excellent business that needs to be run differently in the current competitive environment."

Monsanto shares were 1.1% higher at $80.17 in pre-market trade after reporting a 14% drop in fiscal third-quarter earnings.

-By Doug Cameron, Dow Jones Newswires; 312-750-4135; [e-mail]