US-based agriculture company Monsanto has reported record net sales for the second-quarter and first-half of fiscal year 2009, up to US$4.03bn (up 8 per cent) and US$6.68bn (up 16 per cent) respectively compared with the previous year.
These increases helped drive profit growth of 14 per cent to US$2.5bn in the second quarter, while first-half profit jumped 25 per cent to US$4bn.
Net income in the second quarter of the year actually fell slightly by 3 per cent to US$1.1bn on a year-on-year basis, but for the first half it grew 19 per cent to hit US$1.6bn.
'Through the first half of the year we've done what we had committed to do: we've preserved value across the portfolio, which has allowed us to lift gross profit by 25 per cent, margins by 5 per cent and ongoing earnings by 41 per cent,' said group chairman, president and CEO Hugh Grant. 'We've leveraged our SG&A while maintaining an R&D spend that will allow us to launch two major new products in 2010.
That growth, combined with spending and working capital discipline, is keeping us on track for more than 20 per cent growth in earnings for the full fiscal year and allowed us to maintain our US$1.8bn guidance for free cash generation,' he added.
In segment terms, sales at Monsanto's Seeds and genomics operation rose 20 per cent on 2008 to hit US$3bn in the second quarter, and jumped 22 per cent to US$4.1bn for the first half.
Meanwhile, the group's agricultural productivity segment saw sales drop 16 per cent in the second quarter to US$993m, although they grew 6 per cent for the first half to reach US$2.5bn.
Monsanto has forecast that earnings per share for 2009 will be US$4.23-US$4.33 on a reported basis, with free cash flow expected to be around US$1.8bn.
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