May 03, 2008

- Some Monsanto research -

Monsanto Agrees to Purchase Cargill International Seed Operations In Central And Latin America, Europe, Asia, Africa

    ST. LOUIS, June 29 /PRNewswire/ -- Monsanto Company (NYSE: MTC) and

Cargill, Incorporated, announced today that they have signed a definitive
agreement for Monsanto to purchase Cargill's international seed operations in
Central and Latin America, Europe, Asia and Africa for $1.4 billion.
The acquisition includes seed research, production and testing facilities
in 24 countries and sales and distribution operations in 51 countries in the
five regions. Cargill's international seed businesses specialize in the
development and marketing of corn, sunflower and rapeseed seeds and also
market soybean, alfalfa, sorghum, wheat and hybrid rice seed in these markets.
The acquisition does not include Cargill's seed operations in the United
States and Canada or Cargill Agricultural Merchants in the United Kingdom.
"The potential for our existing biotechnology traits outside North America
is roughly double the acreage potential within North America. The Cargill
international seed businesses give us quicker access to these global markets.
We can accelerate commercialization through established distribution channels
that will bring these and our future agronomic and quality traits to more
farmers around the world in the varieties they want to grow," said Monsanto
President Hendrik A. Verfaillie.
"The biotechnology revolution is rapidly changing the international seed
industry, and Monsanto has been a key player in this arena," said Ernest S.
Micek, Cargill chairman and chief executive officer. "This agreement combines
Cargill's excellent germplasm and international research, marketing and
distribution network with Monsanto's leadership in biotechnology."
Monsanto and Cargill expect that Cargill businesses in Central and Latin
America, Europe, Asia and Africa will continue to market Cargill seeds.
Cargill is a leading global producer of tropical corn seed and germplasm
with significant sales in the Central and Latin American, Asian and African
markets. It has a leading position in oilseeds globally and is one of the few
seed companies with a long-standing presence in Asia and Central and Latin
America. Its international seed business employs approximately 2,200 people.
The sale of Cargill's seed businesses in Central and Latin America,
Europe, Asia and Africa follows an earlier agreement between Monsanto and
Cargill to form a global joint venture to create and market products improved
through biotechnology for the grain processing and animal feed markets. In
addition to this initial agreement, Monsanto and Cargill are exploring future
opportunities to expand their partnership into other areas of agriculture and
food.
Monsanto is a life sciences company, committed to finding solutions to the
growing global needs for food and health by applying advanced bioscience and
biotechnology to agriculture, nutrition and health. It makes and manufactures
high-value agricultural products, pharmaceuticals and food ingredients.
Cargill, based in Minneapolis, Minn., is an international marketer,
processor and distributor of agricultural, food, financial and industrial
products with nearly 79,000 employees in more than 1,000 locations in 72
countries and with business activities in 100 more.



SOURCE Monsanto Company - 1998

Monsanto profit nearly triples in 1st quarter, boosts outlook, shares jump


ST. LOUIS: Monsanto Co. reported Thursday that its first-quarter earnings nearly tripled because of surprisingly strong herbicide and seed sales in Latin America. It boosted its earnings forecast for the year, sending its shares up by 8.5 percent.

The world's biggest seed company earned $256 million (€173.52 million), or 46 cents per share, during the first fiscal quarter ended Nov. 30 — almost triple its profit of $90 million (€61 million), or 16 cents per share, during the same period last year.

Revenue during the first quarter surged 36 percent to $2.1 billion (€1.42 billion), from $1.54 billion (€1.04 billion) in the prior-year period.

The results beat expectations on Wall Street, where analysts had predicted a profit of 35 cents per share on revenue of $1.87 billion (€1.27 billion), according to a poll by Thomson Financial.

Monsanto's stock rose $9.45 (€6.41), or 8.5 percent, to $120.92 (€81.96) Thursday after rising to a 52-week high of $123 (€83.37) in earlier trading. Its shares have traded as low as $49.10 (€33.28) over the past year.

Unexpectedly strong Latin American sales of the herbicide Roundup caused Monsanto to increase its year-end profit forecast to between $2.50 (€1.69) to $2.60 (€1.76) a share from between $2.20 (€1.49) to $2.40 (€1.63) a share.

Analysts polled by Thomson Financial expect Monsanto to deliver profits of $2.59 (€1.76) per share this year, near the high end of Monsanto's new guidance.

CEO Hugh Grant said he was impressed with the jump in Roundup sales, but the company still plans to reap most of its future profit growth from developing new genetically engineered seeds.

"While we're delighted with the work of the Roundup teams globally, our success in seeds and traits will ultimately determine how we meet our 2008 commitments and our 2012 targets," Grant told analysts during a conference call Thursday morning.

Rising sales of Roundup in Brazil and Argentina mean the herbicide will deliver roughly $1 billion (€0.68 billion) in gross profit by the end of the year, up from the $950 million (€643.94 million) the company estimated just over a month ago, said Chief Financial Officer Terrell Crews.

The company said total seed and genomics sales rose to $836 million (€566.66 million) from $680 million (€460.92 million) in the year-ago quarter. Agricultural sales rose to $1.26 billion (€0.85 billion) from $859 million (€582.25 million) a year ago.



No comments:

ShareThis