Monsanto trims profit forecast on Roundup slowdown
A sharp drop in the use of Monsanto’s herbicide, Roundup (glyphosate), has prompted the company to trim its profit forecast for fiscal 2009. Monsanto expects the gross profit from its glyphosate business to remain flat at some $2,000 million in the year to August 31st 2009, rather than the $2,400 million forecast in April ( Agrow No 565, pp 10-11). Earnings per share are now forecast at $4.40, representing the lowest point of the earlier guidance of $4.40-4.50/share. However, that would still represent annual earnings growth of 20% and the fifth year of consecutive growth of 20% or more, the company points out.