Monsanto's net income rose to $937 million the three months ending May 31, an increase over the $692 million the company posted during the same time in 2011, according to Monsanto's latest report.
The company is expecting further growth due to a current drought in the U.S. Midwest, the worst the region has seen in a decade, because the conditions may demonstrate Monsanto's products' superior yields and performance. “Our genetics tend to do well in warm, dry conditions,” said CEO Hugh Grant. “It’s not something that you hope for, but we have an edge in that.” The company could also benefit from competitors losing stock due to the drought, where Monsanto can bring in seeds from Latin American stocks.
Monsanto will raise enough seed for a 96-million-acre corn crop, 2 million to 4 million acres more than expected in the company’s forecast for a “mid-teens” percentage rise in 2013 earnings, said Chief Financial Officer Pierre Courduroux.
