7/23/2002

Monsanto Earnings Down on Bad Debt

by Julianne Johnston
Agweb.com

Monsanto Company today reported sales and earnings for the second quarter
of 2002, saying earnings were down on bad debt. The company reported net
income of 56 cents per share, which includes the Argentine bad-debt reserve
of $100 million aftertax (38 cents per share) and
restructuring charges of $43 million aftertax (16 cents per share).

Globally, Monsanto said Roundup herbicide volumes and prices were down
while U.S. acreage for Monsanto's biotech traits in 2002 is estimated to
increase 5 percent to 89.5 million acres.

Monsanto President and CEO Hendrik A. Verfaillie, said, "Although weather
conditions affected our Roundup herbicide business, our U.S. business is
performing well overall. In Latin America, consistent with our strategy, we
began to implement the tactics necessary to reduce risk. "Even with these
challenges, cash generation is improving as we address working capital."


Second-quarter 2002 net sales declined to $1.6 billion, and sales for the
first six months of 2002 of $2.8 billion also were lower compared with
sales in the first half of 2001. "Wet spring weather conditions in the
United States delayed planting of corn and soybeans, which reduced sales of
Roundup," says the company.