Seed maker Monsanto reports 1Q loss as herbicide sales sag, shares fall

Seed maker Monsanto posts 1Q loss on weak sales

ST. LOUIS — Monsanto Co., the world’s biggest seed maker, said Wednesday it lost $19 million in the first quarter as global sales of its popular Roundup herbicide sank in the face of generic competition.

Analysts had been looking for a break-even quarter on higher revenue, and its shares slipped 86 cents to $84.14 in morning trading.

The company said Roundup sales were particularly weak in Brazil and Europe, where a global glut of generic Roundup herbicide, called glyphosate, depressed prices.

As Roundup profits have flagged, Monsanto has shifted focus to its growing biotech seeds division. The company is betting its future on developing new, patented crops that yield higher profits.

Monsanto said its overall loss amounted to 3 cents per share in the quarter ended Nov. 30 versus a profit of $556 million, or $1 per share, a year ago.

Revenue fell to $1.7 billion from $2.65 billion a year ago. Analysts expected almost $2 billion in revenue.

Losses were led by the St. Louis company’s chemical division, where sales fell by 57 percent to $666 million.

But sales fell 6 percent to $1.03 billion in the seed and traits division during the quarter. Corn seed sales fell 9 percent to $569 million for the quarter, while soybean sales fell 5 percent to $201 million.