* Says share gains in Latin America
* Says mid-teens EPS growth beginning in 2011
* Shares unchanged
By Carey Gillam
NEW YORK, May 19 Monsanto (MON.N) sought to
reassure disheartened investors on Wednesday, saying it was
gaining market share in Latin America and that farmers were
enthusiastic about its new U.S. seed product lineup.
The company, which has been struggling with a raft of
competitive problems in both its chemicals and seeds and traits
businesses, reiterated a forecast for mid-teens percentage
growth in earnings per share beginning in 2011.
The news of market share gains in Latin America comes as
the company works to underpin investor discontent that pushed
shares in the global seed company to a more than three-year low
on Monday. The stock fell to $53.90 that day, a 42 percent drop
over the last year alone.
Monsanto shares were unchanged at $54.26 in morning trading
Monsanto, a leading developer of genetically altered
soybeans, corn and cotton, among other crops, said Wednesday
that despite a decline in overall acres, it gained one
percentage point in corn market share Argentina. The company
said that in Brazil it sold 5 million acres of its YieldGard
Corn Borer, which helped push its share up three points.
Executive Vice President Brett Begemann said recent company
research indicated that for most U.S. farmers, Monsanto's
reduced-refuge family of corn traits products "creates a
compelling opportunity for conversion and adoption."
The optimistic tone comes a month after Monsanto predicted
corn-seed share this year would be flat and bean-seed share
down. The company has said that amid weaker-than-forecast sales
of new SmartStax corn seed and Roundup Ready 2 Yield soybeans,
it would lower prices.
Part of Monsanto's struggle stems from its herbicide
business. The company's agricultural products segment saw a 35
percent drop in second-quarter net sales to $642 million from a
Analysts have become increasingly critical of the company's
market moves, chiding Monsanto for taking an arrogant approach
in marketing and pricing of both its Roundup herbicide and
"The company's pricing policies have been too aggressive,
if not obscene, in our opinion," Morgan Joseph & Co analyst
Charlie Rentschler wrote in a report to investors on Monday.
Still, Rentschler said Monsanto appeared to be making solid
progress in regaining its footing.
Jefferies & Co analyst Laurence Alexander expressed concern
in a report Friday about lower seed pricing and deterioration
in the company's glyphosate business.
"Overhangs from excess corn inventory and the potential for
lower trait fees next year are likely to increase concerns that
there could be downside risk to Monsanto's target of mid-teens
EPS growth through 2012," he wrote.
Monsanto is also dealing with an antitrust probe by the
U.S. Department of Justice and several state attorneys
(Reporting by Carey Gillam; Editing by Lisa Von Ahn)