Monsanto’s earnings drop 34% in first quarter

Jan 07, 2015

Profit of $243 million reported, down from $368 million

By Diego Flammini, Farms.com

As a result of record harvests in soybeans and corn that sent prices for the crops plummeting, farmers from South America and beyond reduced their need for corn seeds from Monsanto, dropping the company’s earnings by 34%.

They said corn acres dropped by about 20% in Argentina, 10% in Brazil, and their cotton planning in Australia saw reductions.

Their profits went from $368 million, trading for about 69¢ per share, to $243 million, or 50¢ per share.

The company said on the larger scale, the demand for corn and soybeans is still there and they expect their full-year earnings to be in the range of $5.75 to $6.00 per share.

"The near-term headwinds in agriculture persist, but our ability to deliver new solutions to help farmers improve yields while efficiently using resources provides the opportunity to deliver growth in both the current environment and over the longer-term," said CEO Hugh Grant in a statement.

Sales of their most popular herbicide, RoundUp, and other chemical products declined from $1.47 billion to $1.25 billion.

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.