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Monsanto raises its fiscal 2008 guidance
Thursday October 2, 6:01 pm ET
Monsanto raises guidance in hopes of allaying investor fears; Cites strong herbicide sales

ST. LOUIS (AP) -- Monsanto Co. raised its year-end earnings forecast Thursday, hoping to calm nervous investors after the agricultural products company's stock price fell this week.

Monsanto now expects net income of $3.64 per share for fiscal 2008, up from a previous range of $3.58 to $3.60. On average, analysts polled by Thomson Reuters had expected earnings per share of $3.57.

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Monsanto is set to announce its earnings results next Wednesday, but the company put out its new guidance Thursday after the company's traded sharply lower. The shares closed down $15.83 or 16 percent at $82.01 amid a broader decline in the market.

"We know there is turmoil out there, but we want to make sure people know we're confident in our business," Vice President of International Operations Kerry Preete said in phone interview.

Monsanto wanted particularly to allay fears that high phosphorous prices might hurt its business. Prices for that key fertilizer have skyrocketed over the last year, and the material is an ingredient in the company's Roundup fertilizer.

Preete said phosphorous only accounts for 10 percent of the company's cost to make Roundup. Monsanto expects solid Roundup sales as global demand for the herbicide increases.

Monsanto said it expects full-year gross profit from Roundup in 2009 between $2.3 billion and $2.4 billion. It had previously estimated profit in the range of $2.1 billion to $2.2 billion. The company increased its 2012 Roundup gross-profit target to $1.9 billion from $1.8 billion.

Possible bounce to fill the gap to 94$ range here. Might take a bit to consolidate and form a base, but one to keep a eye on

We are going to stay away from all of the fertilizers and ags until DOW 10,000. These are poison right now and you don't have to be the first one in.

MON Monsanto Co New The agricultural seeds and products giant said that it lost $172M in its fourth-fiscal quarter, less than analysts’ expectations, but that sales surged 35% to $2.05B, beating analysts’ expectations. 85.23 +11.05 / +14.90%