Monsanto reports bigger loss in Q4
American agribusiness Monsanto reported a net loss of $233 million in the fourth quarter of fiscal year 2009. That is a 30% year-on-year increase as in the same period last year the company reported a net loss of $172 million.
The company reported net sales of $1.9 billion for the fourth quarter of fiscal year 2009, a slight decrease over the same period of fiscal year 2008 due in large part to a sales decrease for Monsanto's Roundup® and other glyphosate-based herbicides as a result of pricing competition and a global glyphosate supply and demand imbalance. Positive drivers for the quarter included higher sales of corn seeds and traits as well as sales of vegetable seeds.
For the full year, company net sales and gross profit were up 3% and 9% respectively.
The company saw record net sales of $11.7 billion in the company's fiscal year 2009, driven by higher worldwide corn seed and traits revenue, increased soybean seed and traits revenue in the USA, and higher cotton seed and traits revenue driven by higher trait penetration in India and increased acres in Australia.
Increased revenue from the company's vegetable seed portfolio also contributed to results in the year. Overall, seeds and traits profit made up more than 65% of total company gross profit, growing at a 17% rate over fiscal year 2008, and helped offset lower sales of Roundup and other glyphosate-based herbicides. These sales went down by 23%.
For fiscal year 2009, Monsanto reported net income of $2.1 billion, which was a slight increase over last year's net income of $2 billion.
The company announced to increase prices for seeds to a maximum of 10%.
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