Monsanto boosts outlook, posts narrower 4Q loss

Its shares surged as much as 18 percent after Monsanto increased its profit projections over the next four years. Chief Executive Hugh Grant told investors that strong global demand for grain will boost sales even amid a global economic downturn.

Grant said Monsanto expects to earn gross profit between $9.5 billion to $9.75 billion in 2012, up from its prior estimate of $8.6 billion to $9.1 billion. Grant said most of the profit growth will come from selling engineered seeds.

"I think that people are going to continue to eat," Grant said during a conference call. "Given the demand for food, feed and fuel--regardless of the trajectory of the curve--we are going to need more yield per acre."

Monsanto's stock rose $7.26, or 9.8 percent, to close at $81.44 after rising as high as $87.82 earlier in the session. The stock had also traded at a 52-week low of $68.02 shortly after the market opened.

Monsanto's loss for the fourth quarter amounted to 31 cents per share in the three months ended Aug. 31, versus a loss of $210 million, or 39 cents per share, in the same period a year ago. Sales rose to $2.05 billion from $1.5 billion last year.

Monsanto also reported a loss of 3 cents per share from ongoing business during the quarter, down from 18 cents a share a year ago. Those figures factor in the one-time sale of its Posilac milk hormone business, and a separate legal settlement.

Analysts polled by Thomson Financial expected a loss of 9 cents per share for the quarter. Those estimates typically exclude one-time items.

The fourth quarter is generally losing one for Monsanto, because the company has seasonal seed sales. Monsanto says it trimmed its losses this year because of a jump in revenue from Roundup herbicide sales and by its seeds and traits business.

For the year, Monsanto earned $2.02 billion, or $3.62 a share, on sales of $11.4 billion, versus earnings of $993 million, or $1.79 a share, a year ago.