Dec. 30, 2013, 10:59 AM
Dec. 11, 2013, 10:29 AM
- Monsanto (MON) is teaming up with a Danish biotech Novozymes (NVZMF, NVZMY) to develop microscopic organisms that help plants grow and resist pests, a move that could enable it to circumvent some concerns over its genetically modified seeds.
- MON will pay $300M as part of the deal, in which the companies plan to combine their efforts to cultivate beneficial bacteria; they will split the cost of development equally and each get 50% of the profits from sales.
- The idea of using microbes for plants hasn't caught on yet in part because many of the largest farmers are used to growing crops with synthetic fertilizer, scientists say.
Dec. 9, 2013, 4:39 PM
Nov. 18, 2013, 1:59 PM
- China reportedly rejected a cargo of U.S. corn because it contained a genetically modified variety not approved for import; the shipment was said to contain Syngenta's (SYT -0.4%) Agrisure Viptera corn.
- Earlier this year, Monsanto (MON) ran into trouble when an unapproved GMO strain of wheat it had devloped showed up in a farmer's field in Oregon.
Nov. 11, 2013, 3:40 PM
- Monsanto (MON -0.6%) is reiterated with a Buy rating at UBS, which also raises its price target to $118 from $110, following what the firm calls a "very upbeat" biennial investor event.
- Given MON's confidence in near 8% gross profit growth from mix alone this year despite lower crop prices, the firm says it has greater confidence in modelling the same growth rate for next year; only 25% of soybeans in the Americas have MON's Gen 2 Roundup tolerance trait, and Latin American insect protected soy also set to ramp sharply in the next few years.
- MON's new platforms could ramp to ~$1B in sales by 2018-19, the firm adds.
Nov. 8, 2013, 7:59 AM
- DuPont's (DD) agricultural seed unit of DuPont is teaming with Deere (DE) in a race against rival Monsanto (MON) to provide farmers with enhanced "precision agriculture" analyses aimed at maximizing crop production.
- The programs, which will roll out next year, will give farmers guidance on field management decisions including planting, crop treatment, pest control and even the best time to harvest.
- DuPont Pioneer has long counseled farmers on the best seed to plant for their particular farms, but the deal with Deere is the latest in a series of moves by both DD and rival MON to turn farm-related data analyses into new profit streams by incorporating analytics on an array of data points.
Nov. 5, 2013, 7:54 AM
- Monsanto (MON) +2.2% premarket after announcing a $1B public debt offering, with $400M in three-year bonds, $300M in five-year bonds and $300M in 30-year bonds.
- MON intends to use the net proceeds, together with available cash, to repay debt issued to finance the acquisition of The Climate Corp. and for other general corporate purposes.
Oct. 4, 2013, 3:35 PM
- Dow Chemical (DOW +2.8%) reveals plans to challenge Monsanto’s (MON +0.2%) insect-repelling soybeans for South America with beans engineered to kill pests with two added genes.
- MON estimates the market for its Intacta beans, which are being introduced on 3M acres this year and have one Bt gene to control bugs, at 100M acres; Dow says having two Bt genes with different modes of action will slow insects’ ability to overcome the technology.
- Dow says the new soybeans should be available in Brazil and Argentina in three to five years, pending regulatory approvals.
Oct. 3, 2013, 11:49 AM
- Monsanto (MON -0.3%) is pulled from the Conviction Buy list at Goldman Sachs after its dilutive acquisition of Climate Corporation, as MON believes the deal will be $0.14 dilutive to 2014 EPS.
- The firm still rates MON a Buy but with a reduced price target of $118, down from $124, and lowers its FY 2014 EPS from $5.54 to $5.46 to account for the company's weaker than expected 2013 base, not yet including the acquisition.
- Deutsche Bank lifts its price target to $120 from $116, however, as the Climate Corp. acquisition leaves MON "well positioned to address agriculture's next major growth frontier: the use of data to optimize farmer decision making and drive incremental yield."
Oct. 2, 2013, 3:49 PM
- Investors appear unimpressed with Monsanto's (MON -1.4%) $930M purchase of Climate Corp. and instead focus on MON's 2014 profit forecast and a drop in gross profit in its key corn and soybean seed business in the latest quarter.
- "Seed gross profit was down more than expected," and the 2014 outlook is too low, BGC Financial says.
- MON is positioning the Climate Corp. acquisition as part of a longer-term recovery plan, and a tip of the hat to bigger issues around ecology; "The weather is becoming more extreme. We found that we had kindred spirits with the folks at Monsanto," says Climate Corp's COO.
- In the earnings conference call, CEO Hugh Grant called the deal a transformational event: "This is the entry ticket into a $20B market opportunity" for data-driven products to help farmers boost production. "It will strengthen our growth rate over the coming decade."
Oct. 2, 2013, 8:40 AM
- More on Monsanto's (MON) FQ4 results: Net sales rose 5% Y/Y to $2.2B from $2.1B, while total operating expenses increased to $1.21B from $1.14B.
- For FY 2013, Seeds and Genomics segment sales totaled $10.3B, led by its global corn portfolio that gained 13% Y/Y; segment sales in FQ4 were ~$1.2B; the segment is expected to be the biggest driver of growth, with expectations to mid-teens gross profit growth in FY 2014.
- Plans to pay $930M to acquire the Climate Corporation, which it describes as a leader in agriculture analytics and risk management.
- Sees FY 2014 EPS of $5.00-$5.20 after $0.14 in acquisition-related dilution; analysts had been expecting $5.33.
- Shares -2.1% premarket.
Oct. 2, 2013, 8:03 AM
Oct. 2, 2013, 12:05 AM
Oct. 1, 2013, 5:30 PM
Oct. 1, 2013, 4:52 PM
- Monsanto (MON +1%) halts construction of a $150M corn processing plant in Argentina after protests by environmentalist group "The Argentine Malvinas Assembly" disrupted flow of work supplies.
- Scheduled to come on-line in the first months of next year, the plant's timetable is "now in doubt," Monsanto official Pablo Vaquero said.
Sep. 13, 2013, 5:43 PM
- Monsanto (MON) is under investigation after samples of alfalfa tested positive for genetically-modified traits in Washington state, according to reports yesterday.
- If confirmed, it would be the second known case of GMO contamination in a major U.S. crop since May, when university scientists confirmed the presence of a banned GM wheat growing in a farmer's field in Oregon.
- The suspected outbreak comes in the run-up to a ballot measure in the state that would require mandatory labeling of all GMO foods.
MON vs. ETF Alternatives
Monsanto Co is a provider of agricultural products for farmers. The Company offers corn, soybean, cotton, wheat, canola, sorghum and sugar cane seeds. Its segments are Seeds and Genomics and Agricultural Productivity.
Other News & PR