Numbers at DuPont AG & NUT Will Tumble in Q3 2013!
DuPont AG Struggling With Seed Sales in South America
Good Morning, Bonjour, Guten Tag, Buenos Dias,
Readers, we cannot improve on the excellent analysis yesterday, Oct. 1, 2013 by talented Motley Fool writer, Neha Chamaria on the global seed industry:
"Monsanto's fourth-quarter numbers are likely to disappoint investors. Analysts expect the company to turn in a loss of $0.43 per share, though they see its revenue growing 6% year over year. While a loss is bad news, a growing top line should more than make up for the disappointment, since it could also mark the beginning of the next big success story for Monsanto.
"Revenue in the months between June and August is primarily driven by international markets, especially Latin America. This June, Monsanto hit a major milestone in Brazil when its next-generation Intacta RR2 PRO soybeans trait was cleared for commercial launch. The approval couldn't have come at a better time, since Brazilian farmers were just preparing for their main September planting season.
"A perfectly timed opportunity...Naturally, [Monsanto's] Intacta RR2 PRO has made its way into Brazil at the perfect time, and should ensure Monsanto's leadership in the market. Even as arch rival DuPont... tries hard to improve its current market share of just about 10% of the Brazilian soybean market, any innovation from Monsanto, such as Intacta RR2 PRO, has the potential to further push DuPont's growth in Brazil to the back burner. Lower corn acreage only adds to DuPont's agony: It expects "a substantially larger seasonal loss year over year for its agriculture division this quarter on lower corn planting in Brazil."
Unlike its nearest but lagging competitor DuPont, Monsanto is projecting robust earnings growth in the mid-teens for FY2014.
Merely the morning column of one individual investor and long-time student of the declining and dysfunctional