The Monsanto Company (MON),a multinational agricultural biotechnology corporation, delivered great news to the stock investing community with incredible second quarter growth this year: $3.8 billon. This amazing 45 percent growth in revenues over last year’s effort was driven by domestic and international growth. The Monsanto Company is the world’s leading producer of the herbicide glyphosate, marketed as Roundup. Sales of this herbicide and others were $982 million globally compared to $530 last year. Dramatic increases in revenues ($1,747 million from $1,192 million in 2007) mainly from the US and Brazilian corn seed and traits business also contributed to this record growth. The year-to-date sales were 42 percent higher than sales compared with the same period in fiscal year 2007.
Monsanto reported net income of $1.1 billion in the second quarter of fiscal year 2008, compared with reported net income of $543 million in 2007. Monsanto reported net income of $1.4 billion in the first six months of fiscal year 2008, which was significantly higher than net income of $633 million the company realized in the first six months of fiscal year 2007. Alert traders immediately began adding the stock to their personal stock portfolio upon the receipt of this news. Monsanto Chairman, President and Chief Executive Officer Hugh Grant comments: “The performance of our seeds and traits business has us on track for another exceptional year and well positioned to support our five-year strategic growth plan.”
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Earnings per share (EPS) for the second quarter was $2.02 on an as- reported basis, and was $1.79 on an ongoing basis. Earnings per share (EPS) for the first six months of fiscal year 2008 were $2.48 on an as-reported basis, and $2.25 on an ongoing basis. Both periods enjoyed favorable boost by $0.23 per share from the settlement of Monsanto’s claims in conjunction with Solutia’s emergence from bankruptcy. In recognition of its claims and contributions, Monsanto received $163 million in cash and approximately 2.5 million shares of new Solutia common stock during the second quarter.Executive Officer Hugh Grant comments: “The performance of our seeds and traits business has us on track for another exceptional year and well positioned to support our five-year strategic growth plan.” Monsanto closed Tuesday at $120.78 up + 1.19(+1.00%), giving the entire stock market help. Inline with Mr. Grant, analysts predict a 37% average annual growth rate through the next five years. The MON Sales Growth rate (36.39%), EPS Growth rate (187.50%), Operating Margin (18.00%) and Net Profit Margin (12.11%) compare favorably with industry, sector and S&P 500 averages.
In addition to strong financial postings, investors should be aware that Monsanto announced April 2, 2008 its intention to make an investment of up to $196 million over the next 18 months at its glyphosate manufacturing facility in Luling, Louisiana. The planned development will increase its global capacity to produce Roundup and other glyphosate-based herbicides. The company also revealed its commitment to global awareness and conservation by implementing a hydrogen-recovery project, a step that will enable it to reduce natural gas costs and better conserve and utilize hydrogen, a by-product of the glyphosate manufacturing process. The energy-reduction project is expected to allow the company to reduce its direct or indirect greenhouse gas emissions at the facility by an estimated 128 million pounds, or 58,000 metric tons, annually. This reduction equates to a carbon footprint that would be generated by more than 9,000 airplane trips around the world annually.
Investors should exercise their own judgment when selecting long term stock picks, stock market research is very important. Monsanto does offer potential upswing to a diversified trading portfolio. Over the past 52 weeks, it has traded between $53.95 and $129.28 making a stop loss decision very attractive around the $100 mark.
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[tags] biotechnology, herbicide, Roundup, Brazilian, Solutia, Hugh Grant, Luling, Louisiana, hydrogen, MON, Monsanto Co., covered call investment strategy, investment strategy, iron condor, long term stock picks, personal stock portfolio, poweroptions, stock investing, stock market help, stock market research, stock option trading, stock options [/tags]