Monsanto trumpeted a rise in advance seed orders by US growers even as it revealed that strong South American demand had driven profits above an upgraded forecast, and lifted its full-year earnings guidance too.
Shares in US-based group closed up 5.5% at $76.68 in New York.
The seed giant rated as "strong" the level of advance orders by US farmers for the spring planting season when, in corn, its cutting edge genetically modified seed is expected to account for roughly one-quarter of sowings, and in soybeans some 40% of area.
The company's US order book "is ahead of the same point in time last year, and tracking well with 2012 targets", Monsanto said, adding that the pace of demand "confirms US momentum" and "underscores confidence in a step up of key corn and soybean platforms in 2102".
The group forecasts US area sown with its Genuity Roundup Ready 2 Yield soybean seed, modified for factors including resistance to herbicides to enable growers easily to spray off weeds, jumping to 27m-30m acres this year.
US farmers will sow some 22m-24m acres with the so-called Reduced Refuge genetically modified corn.
'Real growth'
The comments came as Monsanto unveiled a jump in earnings to $126m for the September-to-November period, the first of its financial year, from $9m in the same period of 2010.
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Monsanto targets for US sowings with its biotech seed, 2012
Genuity Roundup Ready 2 Yield soybeans: 27m-30m acres, (+59-76% on 2011)
Reduced refuge corn brands*: 22m-24m acres, (+69-85%)
* include Smartstax, CT Triple Pro and VT Double Pro labels |
Sales rose by one-third to $2.44bn, boosted by continued strength in Latin America, where greater use of genetically modified seed, coupled in many cases with extra area, is spurring demand.
Indeed, the group highlighted 46% growth to $895m in corn seed sales, "driven by the Latin American market".
"We've seen a very strong start to the [company's financial] year, with real growth in Latin America and early orders in the US that underscore our sustained momentum carrying into 2012," Hugh Grant, the Monsanto chairman and chief executive, said.
Ahead of forecasts
On a per share basis, earnings came in at $0.23 for the quarter, beating guidance the group upgraded to $0.15-0.20 last month, besides analysts' forecasts.
Wall Street had pencilled in a $0.16-a-share result.
Monsanto added that, for the full year to August, it was now guiding to "the high end" of a forecast of "mid-teens" earnings per share growth, expecting to achieve $3.39-3.44 per share.
Last month, the group guided to full-year earnings per share of $3.34-3.44.
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