Monsanto increases earnings outlook due to demand for seeds, herbicides

ST. LOUIS -- Monsanto Co. increased its full-year 2008 earnings per share outlook Tuesday, citing strong demand for its seeds and traits business as well as for Roundup and other herbicides.

Its shares rose 4 percent in morning trading.

The St. Louis-based company expects full-year earnings in the range of $2.70 to $2.80 per share. Previously, the company expected earnings in the range of $2.50 to $2.60 per share.

Analysts polled by Thomson Financial expect a profit of $2.81 per share.

Monsanto now believes its glyphosate-based herbicide business could deliver up to $1.4 billion of gross profit in fiscal year 2008. The company said the improvement is due in large part to increased acres of Roundup Ready herbicide, increased adoption of conservation tillage practices and competitive pricing.

Seeds and traits could contribute $3.5 billion of gross profit, the company said.

Growing adoption of corn and soybean products in the U.S. and Latin America is helping results. Begemann said Monsanto's DeKalb corn seed brand in the U.S. could see an increase this year of 2-3 share points. Meanwhile, the company's triple-stack trait product could be planted on up to 27 million acres in the U.S. -- an increase of about 50 percent over 2007.

Monsanto shares rose $1.02 to $115.05 Tuesday.