Monsanto Company announced strong second quarter and first six months results.
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Earnings per share (EPS) reached $3.09 on an as-reported basis and $3.19 on an ongoing basis for the second quarter of fiscal year 2017.
Monsanto’s net sales for the quarter increased to approximately $5.1 billion, up from $4.5 billion in the prior year period.
Gross profit for the quarter also increased over the prior year period to $3.0 billion versus $2.6 billion for the prior year period.
For the first six months, net sales increased to $7.7 billion and gross profit was $4.2 billion; significantly outpacing the first half of fiscal year 2016.
For the second quarter of fiscal year 2017, selling, general and administrative costs were $657 million and research and development expenses were $381 million.
The company reported $3.09 EPS for the second quarter of 2017 on an as-reported basis and $3.19 EPS on an ongoing basis, well above the prior year ongoing EPS of $2.42.
This growth of more than 28 percent in both as-reported and ongoing EPS was driven by three things: more than $300 million of gross profit growth from its corn and soybean businesses, the absence of the approximate $180 million Argentine peso devaluation, and the $83 million gain from the sale of the Latitude business recorded in other income for the quarter.
In the first six months of fiscal year 2017, as-reported EPS was $3.16 and ongoing EPS was $3.39 EPS, compared to $1.80 as-reported and $2.25 ongoing in the previous year.
During the first six months of fiscal year 2017, net cash provided by operating activities was a source of approximately $1.5 billion, compared to approximately $1.4 billion the same period last year.
Net cash required by investing activities for the first half of fiscal year 2017 was $438 million, compared to $483 million for the same period of fiscal year 2016.
Net cash required by financing activities for the first half of 2017 was approximately $494 million, compared to net cash required of $3.5 billion for the same period of fiscal year 2016.
Free cash flow was a source of nearly $1 billion for the first half of fiscal year 2017, versus $900 million for the first half of fiscal year 2016. ■