Monsanto 3rd-Qtr Profit Falls 16% as Seed Business Expands
Bloomberg News
October 15, 1998, 4:49 p.m. ET
Monsanto 3rd-Qtr Profit Falls 16% as Seed Business Expands
St. Louis, Oct. 15 (Bloomberg) -- Monsanto Co., one of the
world's largest agricultural biotechnology companies, said third-
quarter profit fell 16 percent as it spends to develop new
products and integrate acquired seed businesses.
Profit before charges fell to $87 million, or 13 cents, from
$103 million, or 17 cents, a year earlier. Results matched the
average estimate of analysts polled by First Call Corp.
Monsanto, which also makes drugs, said sales rose 15 percent
to $1.99 billion from $1.72 billion. Sales were boosted by a $140
million payment from Pfizer Inc. under a marketing agreement for
a Monsanto arthritis drug expected to go on the market in 1999.
In the latest quarter, a charge of $187 million, or 30
cents, for research and development associated with the
acquisitions made a final loss of $100 million, or 17 cents.
In the year-earlier period, Monsanto took a charge of $270
million, or 45 cents, stemming from another acquisition and had
income from its discontinued chemical businesses of $34 million,
or 6 cents. That made a final loss of $133 million, or 23 cents.
Monsanto on Tuesday ended a planned $35 billion merger with
American Home Product Corp., a combination analysts and investors
thought would have benefited both companies.
Monsanto shares rose 3 1/4 to 37 1/4.
--Kerry Dooley in the Princeton newsroom (609) 279-4016 /bab |
