A 34% drop on Monsanto Co.’s quarterly profit was reported last Wednesday, which was partly because of lower and slow planted corn industry in the South American region, plus the shift of some sales timing. Though the decline recorded was a bit less steep compared to the forecast of analysts.
A total of 2% increase on Monsanto Co.’s overall shares was recorded. Monsanto is the largest seed company in the world, is also known for their soybeans, corn, and other crops that are genetically engineered, and also their popular Roundup herbicide, increased almost 2%.
Overall net sales decrease to $2.9B during the year’s first quarter that ended last November 30 from $3.1B one year earlier, but was affected negatively by a recent 12% fall on corn seeds and also genetic traits amounting to $928M. Trait products and soybean seed overall sales, however, increased 48% amounting to $396M.
The company’s newest key product, Intacta RR2 PRO, Monsato’s a newest genetically engineered soybean created to defend against damaging worms is currently being marketed to farmers in the South American regions.
In connection to the reported 34% drop on Monsanto Co.’s quarterly profit, reduced U.S. field corn planting this spring are causing company officials to forecast 2nd-quarter earnings to drop 5% to 10% compared to last year’s performance.