Despite having a man named Hugh Grant at the helm,
Monsanto (NYSE: MON) is a serious business.
Between its seeds and genomics unit, which is poised for
explosive growth, and the agricultural productivity segment,
which is slowing now that the Roundup windfall has
peaked, Monsanto is an agricultural powerhouse. Judging
by its
collaborationswith
Dow Chemical (NYSE: DOW) and
Syngenta (NYSE: SYT) on the one hand, and its
legal spatwith
DuPont (NYSE: DD) on the other, the company
is both respected and feared.
Speaking of respect, Monsanto just reported its fourth
quarter and fiscal year 2009 results. On a continuing basis,
both periods delivered growth over the prior year, which is
more than respectable given the
agricultural anxietyexperienced over the past year.
Seeds and traits delivered a gross profit of $4.5 billion
this year, representing 17% growth. Next year, this unit will
cross the $5 billion mark as Monsanto rolls out two
blockbuster products -- SmartStax corn seeds and Roundup
Ready-2-Yield soybeans. And that's just the beginning, seeing
as the firm plans to introduce seven new products in as many
years.
For fiscal 2010 earnings on an ongoing basis, Monsanto
left its guidance unchanged at $3.10 to $3.30. That may not
sound stellar for a company trading at $75 per share.
Compared to the fertilizer shops like
PotashCorp (NYSE: POT) and
Agrium (NYSE: AGU), Monsanto is priced at a
bit of a premium. Still, I can see the bullish case when
considering the firm's highly visible growth pipeline.
This article was originally published as
Monsanto's Solid Year in Seedson
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