International seed and agrochemical company Monsanto has announced this week that overall group losses hit US$19m (€13.2m) during the first quarter of 2010, as the group was hit by falling demand for its Roundup herbicide product.
The US-based group said that sales were particularly hit in Europe and Brazil, where increased competition from generic products depressed market prices.
Total net sales dropped by US$952m (€662.7m), or 36 per cent, when compared with the first quarter of fiscal 2009, while the gross profit percentage for the company decreased 15 percentage points to 44 per cent during the three-month period.
Operating expenses for the quarter fell 3 per cent, or US$25m (€17.4m), compared with the prior year, with selling, general and administrative expenses down 10 per cent primarily because of lower spending for marketing, administrative functions and incentives.
'Out first quarter is a small but important quarter as it sets the foundation for the year ahead, which we see as a critical year in propelling us to reach our 2011 and 2012 commitments,' said Monsanto chairman, president and CEO Hugh Grant. 'We've delivered on our targets for the quarter and this year we are confident that we will achieve the milestones necessary to reach our financial commitment to our shareowners.'
As part of the results report, Monsanto confirmed that full-year 2010 ongoing earnings per share guidance remains in the range of US$3.10 to US$3.30.
Meanwhile, Monsanto has been handed the prestigious title of Company of the Year for 2009 by Forbes Magazine, after being praised for its economic success and innovativbe new products.
Robert Langreth and Matthew Herper referred to the company as an economic winner in an article by the publication entitled 'The Planet versus Monsanto'.
'It has created many billions of dollars of value for the world with seeds genetically engineered to ward off insects or to make a crop immune to herbicides: Witness the vast numbers of farmers who prefer its seeds to competing products, and the resulting US$44bn market value of the company,' the Forbes article said.
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