said Thursday its fiscal third-quarter earnings surged 71 percent on increased U.S. sales of corn seed, traits and herbicide.
Third-quarter net income surged to $570 million, or $1.03 per share, from $334 million, or 60 cents per share, in the prior year. Profit from continuing operations totaled $565 million, or $1.
02 per share, compared with $322 million, or 58 cents per share, a year ago. Quarterly net sales jumped 23 percent to $2.84 billion, from $2.
31 billion in the prior-year period. The results surpassed the expectations of analysts surveyed by Thomson Financial, who predicted earnings of 98 cents per share on sales of $2.77 billion.
(nyse: MON - news - people ) attributed the sales growth to increases in corn seed and traits revenue in the U.S., as well as higher sales of Roundup and similar herbicides in the North America and Europe-Africa regions.
"The 2007 season is shaping up to be an extraordinary year for agriculture," Monsanto President and Chief Executive Officer Hugh Grant said. "We've been able to deliver strong results through this point of the year, and we expect that our gains will contribute to added momentum for our business through the end of the decade." The company said the sales growth was partially offset by lower cotton trait sales in the U.
S. as farmers reduced the number of acres planted in favor of corn. Monsanto also announced that its board approved a three-year, $610 million capital investment for the company's U.
S. The company said the investment plan includes expansions at nine existing corn production facilities and two greenfield sites. Grant said Monsanto was still in the process of selecting sites for the expansions, which he said reflects the company's commitment to the corn business.
The bulk of expansions will occur next year, the company said. Monsanto increased its expectations on the opportunities ahead for its corn trait technologies in the U.S.
In a report on biotech trait acres, Monsanto said it is seeing growth in the India cotton market, U.S. corn market and Brazil soy market.
Bank of America (nyse: BAC - news - people ) Equity Research said Monsanto's overall sales growth of 23 percent exceeded his forecast of 16 percent. He maintained his "neutral" rating on the company's stock, citing the threat to Monsanto of increasing competition from Pioneer Hi-Bred International Inc. and its parent company (nyse: DD - news - people ) Co.
, based in Wilmington, Del., and Sygenta. Monsanto shares rose 68 cents to $66.
68 Thursday. said Thursday its fiscal third-quarter earnings surged 71 percent on increased U.S.
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