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Monsanto Company Reports Operating Results (10-Q)

January 08, 2013 | About:

10qk

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Monsanto Company (MON) filed Quarterly Report for the period ended 2012-11-30.

Monsanto Company has a market cap of $51.38 billion; its shares were traded at around $98.515 with a P/E ratio of 24.5 and P/S ratio of 3.6. The dividend yield of Monsanto Company stocks is 1.6%. Monsanto Company had an annual average earning growth of 17.8% over the past 10 years. GuruFocus rated Monsanto Company the business predictability rank of 3-star.

Highlight of Business Operations:

Consolidated Operating Results Net sales increased $500 million, or 21 percent, in the three-month comparison. This increase was primarily a result of increased sales of corn seed and traits in the United States, Mexico, South Africa and Brazil. Net income in first quarter 2013 was $0.63 per share, compared with $0.23 per share in first quarter 2012.

Operating expenses increased four percent, or $37 million, in first quarter 2013 from the prior-year comparable quarter. In the three-month comparison, selling, general and administrative (SG&A) expenses increased eight percent primarily because of higher spending for commissions, marketing and administrative functions. R&D expenses decreased one percent as a result of timing of our biotechnology spend. As a percent of net sales, SG&A expenses decreased three percentage points to 18 percent, and R&D expenses decreased two percentage points to 12 percent.

Gross profit as a percent of sales for this segment decreased two percentage points to 58 percent in the quarter-over-quarter comparison. Gross profit increased $109 million in first quarter 2013. Gross profit for soybean seed and traits decreased 32 percent compared to the five percent decrease in net sales for soybean seed and traits. This decrease is the result of a reduction in revenue in Brazil due to the temporary suspension of Roundup Ready royalties and higher cost of goods sold primarily due to decreases in the value of inventory resulting from a decline in commodity prices. Further, manufacturing costs in the U.S. increased due to higher commodity prices, larger seed sizes and additional treatment costs.

Net sales in our Agricultural Productivity segment increased $279 million in the three-month period as the average net selling price of Roundup and other glyphosate-based herbicides increased in most markets. Sales volumes of Roundup and other glyphosate-based herbicides increased 13 percent in first quarter 2013 from first quarter 2012 primarily from increased demand for our branded products, including the continued expansion of Roundup Ready crops in South America.

We held cash and cash equivalents and short-term investments of $4.9 billion and $3.6 billion at Nov. 30, 2012 and Aug. 31, 2012, respectively, of which $1.9 billion and $1.7 billion was held by foreign entities, respectively. Our intent is to permanently reinvest earnings of our foreign operations and our current operating plans do not demonstrate a need to repatriate foreign earnings to fund our U.S. operations. However, if these funds were needed for our operations in the United States, we would be required to accrue and pay any applicable U.S. and local taxes to repatriate these funds.

Read the The complete Report

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