Monsanto said it was to axe 900 jobs as the seeds and herbicides giant revealed a drive to "stabilise" its Roundup business, whose profits halved in the third quarter.

The group said it had set aside $350m-400m to pay for the cuts, which will be made from throughout the company as part of a restructuring drive.

As an initial measure, Monsanto said it was to create a separate herbicides division, including Roundup, "to bring more clarity and predictability" to the business. The businesses are currently grouped within the Agricultural Productivity unit.

"This action is designed to enable Monsanto to stabilise the business and allow it to deliver optimal gross profit," the company said.

'Increased pressure' 

In the third quarter, which closed on May 31, gross profit from Roundup and other sprays in the glyphosphate family of weedkillers tumbled 54% to $273m on sales down 48% at $614m.

"Results were impacted by increased pressure from generic [Roundup] and other branded competitors who continue to aggressively move larger-than-expected volumes of lower-priced material into the marketplace," Monsanto said.

The results follow a warning last month by Monsanto of tumbling trade in Roundup, prompting the group to lower profits forecasts for both the latest quarter and the year to August.

Forecasts beaten

Nonetheless, group earnings of $694m, or $1.25 a share, in the March-to-May period beat both Monsanto's lowered guidance last month and analysts' forecast of $1.18 a share.

Monsanto's core seeds division raised revenues by 9.8% to $2,248m, led by a 21% increase in corn market sales.

The group said it believed it had raised its share of the US corn seed market for an eighth successive year, with gains also in Argentina and Brazil.

The seeds division's gross profits rose 17.1% to £1.427m.