Reuters / Monsanto Co., the world’s largest seed company, reported a deeper quarterly loss Oct. 2 as seed sales slipped, and its 2014 profit forecast fell short of Wall Street estimates.
Gross profit as a percentage of net sales was unchanged at 42 per cent, but expenses rose to 35 per cent of net sales from 34 per cent a year earlier.
Monsanto also said it was acquiring a climate data science company as part of a long-term growth plan. The acquisition of San Francisco-based Climate Corp. for $930 million will dilute fiscal 2014 earnings by about 14 cents a share, the company said.
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The acquisition of Climate Corp., expected to close in the first quarter, will complement Monsanto’s FieldScripts precision planting platform for farmers. Monsanto and rival DuPont Pioneer have been racing to roll out data-driven products to help farmers.
In combination with Climate Corp., the FieldScripts product will tie in weather data analysis with field conditions information to help farmers make better planting and harvest decisions, Monsanto said.
The system also can recommend pest management based on disease and weather patterns.
Monsanto said that in 2014 it will launch FieldScripts across four states on hundreds of thousands of acres at a price of about $10 per acre.
It said its farm trials in 2012 showed a production boost of five to 10 bushels per acre when FieldScripts was used.
