Monsanto Co. on Wednesday reported weaker-than-expected earnings for the second quarter amid flagging sales of the company’s biotech-enhanced seeds and signature weed killer, Roundup.
Monsanto has struggled with falling prices for crops like corn, soy beans and wheat, which have reduced farmers’ spending on Monsanto’s genetically enhanced seeds. At the same time, the strong dollar has made its products, including chemical weed killer, more expense overseas.
The St. Louis-based company reported a profit of $1.06 billion, or $2.41 per share, compared with $1.43 billion, or $2.92 per share, in the prior-year period. Earnings, adjusted for one-time gains and costs, were $2.42.
The results fell short of Wall Street expectations, with analysts surveyed by Zacks Investment Research expecting earnings of $2.45 per share.
Sales tumbled more than 12 percent during the period to $4.53 billion, which also missed Street forecasts. Three analysts surveyed by Zacks expected $4.78 billion.