Dallas Koch (pictured) of Wellsburg, Iowa, US, grows the VISTIVE low-linolenic soybeans developed by Monsanto. Monsanto's seed and trait business is expected to grow by 20% in gross profit in fiscal 2008 over the previous year Photo: Monsanto

Unexpectedly strong sales of Monsanto's seed and trait business and its Roundup (glyphosate) herbicide operation have prompted the company to raise its earnings guidance for fiscal 2008 for the third time in as many months. Monsanto expects ongoing earnings of $3.15-3.25/share in the year to August 31st 2008, rather than last month's $2.70-2.80/share forecast (Agrow No 538, p 1).

"As we move closer to the northern hemisphere planting season, we've not only gained confidence in our 2008 opportunity, but also in our strategic path to 2012," says Monsanto's chairman, president and CEO, Hugh Grant. "Our growth over the next five years will be built on our seeds and traits platform, and we've already exceeded a number of milestones that put us ahead of our plan to deliver consistent, sustainable growth." The company expects to meet its target of reaching a 52-54% gross profit margin by 2010 two years ahead of schedule.

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Monsanto's seed and trait business is expected to deliver a gross profit of $3,600-3,700 million in fiscal 2008, representing a 20% increase over the previous year and an improvement on the January forecast of $3,500 million (Agrow No 530, p 3). The revision is attributed to expanded maize trait penetration and seed brand share growth, along with increased soybean seed sales during the first half of the fiscal year.

With global demand for Roundup exceeding supplies, Monsanto expects this business to generate a gross profit of $1,700-1,800 million in fiscal 2008. This would be nearly double the $950 million forecast in January (Agrow ibid). Monsanto's first-half results are due to be issued on April 2nd.

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