Monsanto Co. (NYSE:MON) announced its financial results for the fourth quarter that beat analysts’ estimates, helped by higher corn seed volumes and lower costs.
Sales from corn seeds and traits business climbed 34 percent in the latest quarter amid a surge in corn seed volumes in the U.S.
The St. Louis, Missouri-based company’s cost cutting initiatives helped it to cut expenses by 10 percent. Monsanto also announced in January that it would lay off 3,600 employees through fiscal 2018. The job cut would affect about 16 percent of its total workforce.
Overall, the U.S. seeds and agrochemicals company posted a loss of $191 million, or 44 cents a share in the three-month period ended Aug. 31, narrower than a loss of $495 million, or $1.06 a share in the same period last year. On an adjusted basis, the company posted a profit of 7 cents a share, while analysts surveyed by Thomson Reuters were looking for a loss of 3 cents a share.
Revenue for the fourth quarter jumped 8.8 percent to $2.56 billion, above consensus forecast of $2.36 billion.
Bayer AG in September inked a deal to acquire Monsanto for $66 billion. The deal is subject to regulatory approval. Rival seed companies and some farm groups are concerned about the deal, as they think it could result in limited choices for farmers and higher prices.
Monsanto shares haven’t made any significant gain on Wednesday following the Q4 results. The 52-week range of the stock is $83.73-$114.26. The company’s market cap is $44.57 billion.