Monsanto deals dampen profits

24 July 1998

Monsanto deals dampen profits

MONSANTOS ambitious acquisition programme and increased spending on the development and commercialisation of new products has held back its short-term earnings growth.

The life sciences group yesterday announced after-tax profits from continuing operations in the second quarter of $257 million (£156m) on sales of $2.5bn. This compared with $250m after-tax profits on sales of $2.1bn in the same quarter the previous year.

The company increased what it called “growth” spending by $200m, up 60% from the same period in 1997.

Monsanto is to take an $800m write-off as a result of three of its latest purchases – DeKalb Genetics, Cargills international seed operations and Plant Breeding International Cambridge in the UK.

The St Louis-based company said it had seen “significantly increased” sales of agricultural and other core products, including a strong sales performance internationally from its Roundup herbicide which can be used with a range of genetically-modified crops.

• Financial Times 24/07/98 page 20