The Globe and Mail - (BUSINESS) Report on Business News - May 27, 2009Syngenta AG (SYNN)
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Laurence Alexander
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JefferiesCompany officials had said they saw 2009 as the peak for the herbicide business, with future revenue growth driven mainly by innovations in seeds.
Still, retail prices for glyphosate based herbicide have eroded faster than expected, mostly due to Chinese generics and pricing actions by Monsanto competitors Dow and Syngenta, according to Jefferies & Company analyst Laurence Alexander. Mr. Alexander reported in a note to investors that U.S spot herbicide prices had fallen to $19 $21 a gallon from about $21 $25 a gallon earlier this year. Monsanto said Wednesday its Roundup and glyphosate business will likely generate about $2 billion in gross profit, down from its previous forecast of $2.4 billion. Partly offsetting the bad news on the herbicide business segment, Monsanto said Wednesday its expects its seeds and traits businesses to deliver gross profit toward the upper end of its prior guidance of $4.4 billion to $4.5 billion in fiscal year 2009.
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Company officials had said they saw 2009 as the peak for the herbicide business, with future revenue growth driven mainly by innovations in seeds. <span class="sent"> Still, retail prices for glyphosate based herbicide have eroded faster than expected, mostly due to Chinese generics and pricing actions by Monsanto competitors Dow and <span class="company">Syngenta</span>, according to Jefferies & Company analyst <span class="analyst">Laurence Alexander</span>. </span> Mr. Alexander reported in a note to investors that U.S spot herbicide prices had fallen to $19 $21 a gallon from about $21 $25 a gallon earlier this year. Monsanto said Wednesday its Roundup and glyphosate business will likely generate about $2 billion in gross profit, down from its previous forecast of $2.4 billion. Partly offsetting the bad news on the herbicide business segment, Monsanto said Wednesday its expects its seeds and traits businesses to deliver gross profit toward the upper end of its prior guidance of $4.4 billion to $4.5 billion in fiscal year 2009.
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