Monsanto Plans $400 Million in Cost Cuts

By Jim.Robinson|June 8, 2009

via St. Louis Business Journal

Monsanto plans to cut costs by $400 million this year to offset an expected reduction of $400 million in Roundup weed-killer sales.

“We recently implemented a number of cost-saving actions across the company,” spokesman Lee Quarles said June 3, including a hiring freeze, no overtime, less contractor work, and limitations on travel and off-site meetings. “Only ‘business critical’ travel will be permitted.”

Quarles said no payroll reductions, such as layoffs or pay cuts, have been implemented other than the hiring freeze, overtime ban and contractor reductions.

Monsanto said May 27 that fiscal 2009 earnings would be at the low end of its previously announced guidance of $4.40 to $4.50 a share. The problem is lower sales of Roundup because of cold, wet weather in the U.S., which led to oversupply and price cutting by generic competitors, particularly Chinese makers.