The Associated Press
Monsanto, the world’s biggest seed maker, said last week its third-quarter profit fell 14 percent and disclosed plans to cut 900 jobs, or about 4 percent of its work force.
The layoffs and declining profits were a stark turnaround for Monsanto, which has reported improved earnings over the last few years by selling patented, genetically engineered crops worldwide.
Executives said they were caught off guard by the deteriorating performance of the herbicide Roundup, which was once a mainstay revenue source. A flood of generic products gutted prices for the herbicide, and Monsanto expects profit from Roundup to drop by half this year.
The chief executive, Hugh Grant, said Monsanto would consolidate its Roundup operations into a new division of the company, dedicating less money and fewer workers to an increasingly volatile herbicide market.
The restructuring and layoffs will reduce fourth-quarter profit by 41 to 47 cents a share, the company said.
Monsanto said it earned $694 million, or $1.25 a share, in the three months ending May 31, down from $811 million, or $1.45 a share, a year earlier.
Revenue fell 11 percent, to $3.16 billion, from $3.54 billion. Declining revenue from herbicides like Roundup were only partly offset by increased revenue from seed and trait products sold through its United States soybean, cotton, corn and vegetable businesses.
Stock in Monsanto fell $3.14, to $76.16 a share.
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