Thursday January 21, 12:13 pm Eastern Time
Monsanto says considering more cost cuts
ST. LOUIS, Jan 21 (Reuters) - Life sciences company Monsanto Co. said Thursday that after taking steps to cut costs in the fourth quarter of 1998, it was considering more cost-savings plans that could result in future charges to earnings.
The company earlier reported pretax restructuring and special charges of $625 million in the fourth quarter, mainly to cover previously announced job cuts, to write down assets being sold and to dispose of nonstrategic assets and product lines.
''Our efforts in 1999 will be centered on continuing to grow strong base businesses like Roundup herbicide, integrating our newly acquired seed companies, commercializing new products like Celebrex arthritis treatment, and accelerating the development of our product pipeline,'' Monsanto's chairman and chief executive officer Robert Shapiro said in a statement.
Including charges, Monsanto posted a fourth quarter after-tax loss from continuing operations of $603 million, or $1.00 per diluted share, on sales of $2.1 billion. A year earlier, after-tax income from continuing operations was $5 million, or $0.01 per diluted share, also including charges. Fourth quarter 1997 sales were $1.8 billion.
Excluding charges, after-tax earnings from continuing operations were $27 million, or $0.05 per diluted share, compared with $55 million, or $0.09 per diluted share a year ago.
Monsanto shares were down 7/16 at 39-1/2 at midday on the New York Stock Exchange. |
