Monsanto swings to profit on higher South America demand

Jan. 5 (Reuters) – U.S. seed and agrochemical company Monsanto Co, which is in the process of being bought by Germany’s Bayer AG for US66 billion, swung to a quarterly profit, helped by higher demand from South America.

Sales of soybean seeds and traits jumped 37 percent as more farmers in South America sowed the company’s genetically modified soybean seed Intacta RR2 Pro.

Monsanto agreed in September to a sweetened $128-per-share offer from Bayer that, if approved by regulators, would create a company commanding more than a quarter of the world market for seeds and pesticides.

Monsanto, known for its genetically engineered crops and Roundup herbicide, did not offer any update on regulatory approvals or potential divestitures related to the Bayer deal.

Bayer and Monsanto have said they are confident that the deal will pass regulatory scrutiny. Bayer has said it is committed to divest up to $1.6 billion of its portfolio to win approval.

Increased research and development spending by the combined companies and plans to develop a global seed breeding and biotechnology hub in St. Louis fuel hopes that regulators will not block the deal, Monsanto chief Hugh Grant had said in December.

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Uncertainty about whether President-elect Donald Trump would stand in the way of large mergers after taking office this month – or whether the regulatory approval process under the new administration could take longer than expected – has clouded the outlook of some deals.

Some farm groups, seed companies and bipartisan lawmakers have also raised concerns about the Monsanto-Bayer deal, saying it could result in higher prices and reduced choices for farmers.

Net profit attributable to Monsanto was $29 million, or seven cents per share, in the first quarter ended Nov. 30, compared with a loss of $253 million, or 56 cents per share, a year earlier.

Excluding items, the company earned 21 cents per share. Net sales rose more than 19 percent to $2.65 billion.

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  • Denise

    Why would anybody want to buy such an evil-doer company like Monsanto? Not that Bayer had such a great reputation to begin with,now they will be know as Monsanto’s evil twin.
    non-gmoreport.com/articles/new-study-monsanto-gm-corn-damaged-intestines-rats/

    • John Fefchak

      Denise. We, the people have become the “rats ” (or guinea pigs) for these companies. And all with the blessings of government.

      • Harold

        I agree. Along the way, they have promised to feed and water us and to provide the running wheels, and to protect us from that imaginary cat that may be roaming outside of our cages, much like Mom and Dad do if you’re lucky enough to have them. We have been educated to believe that this is for our own good, and that the design of our cage is of the most importance. We’re all happy!
        When the government is looking for adult advise, it is not the general public it seeks, is it?

    • richard

      Check history of I.G. Farben and its complicity in WW2 profiteering

  • Denise

    Monsanto has spread its poisonous pcbs over large parts of the USA and produced Agent Orange to destroy Vietman’s forests and its people.I wonder when our farmers are going to see the light and realize evil grows where the sun never shines, in the form of pesticides ,like RoundUp,destroying the precious living soil and migrating into our waterways plus contaminating the grains we are supposed to believe are safe to consume, after being desiccated with RoundUp and residues of this poison are left on the seeds.
    http://www.atg.wa-gov/news/news-releases/ag-ferguson-makes-washington-first-state-sue-monsanto-over-pcb-damages-cleanup

    • In the know

      Monsanto produces herbicide.. Not pesticide.. Know the difference?

      • ed

        Actually herbicides, insecticides and fungicides are all pesticides. They chemically address different types of pests, just so you know going forward.

  • Denise

    Monsanto has always been allowed to hid behind the skirts of government. Since they helped the USA, in the Vietnam war, by producing the deadly and toxic defoliant, Agent Orange, they have been sheltered like a spoiled child who never has to play by the same rules,as other kids, and who grows up to be an dangerous criminal that causes harm to many innocent people.
    vigilantcitizen.com/latestnews/new-hidden-law-allows-monsanto-to-plant-and-sell-gmo-seeds-even-if-they-are-later-found-to-be-toxic/

    • Harold

      The USA also has a Monsanto Protection Act.