- Although the USDA projects that U.S. farm acres devoted to corn will decline 4% to 91.7M acres this year, Monsanto (MON +1.2%) anticipates record sales volume in its global corn business this year, partially because of growth in Eastern Europe, company president Begemann says in today's earnings conference call.
- The region is a "30M acre market," and MON has doubled its business there over the last few years, Begemann says.
- MON says its corn portfolio is expanding globally, helping sales of corn seed and traits rise 4% to $3.4B in FQ2, and it sees opportunities for net sales growth of $1B in the business in the next five years due to global demand.
- Analysts' reaction to the quarter was mixed, pointing to weaker than expected growth in herbicide earnings and some disappointment that MON did not raise its guidance.