Monsanto Company (MON) has reported a 17.57 percent rise in profit for the quarter ended May 31, 2017. The company has earned $843 million, or $1.90 a share in the quarter, compared with $717 million, or $1.63 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $857 million, or $1.93 a share compared with $955 million or $2.17 a share, a year ago.
Revenue during the quarter went up marginally by 0.98 percent to $4,230 million from $4,189 million in the previous year period. Gross margin for the quarter contracted 41 basis points over the previous year period to 56.41 percent. Total expenses were 72.48 percent of quarterly revenues, up from 70.18 percent for the same period last year. That has resulted in a contraction of 230 basis points in operating margin to 27.52 percent.
Operating income for the quarter was $1,164 million, compared with $1,249 million in the previous year period.
"Our innovation leadership and commitment to our grower customers is driving our growth, and the completion of the third quarter bolsters our confidence in the full year," said Hugh Grant, Monsanto chairman and chief executive officer. "I'm very pleased with what our teams have accomplished this year, balancing meaningful progress on both delivering the business and working to close the deal with Bayer."
For fiscal year 2017, Monsanto Company expects diluted earnings per share to be in the range of $4.09 to $4.55. It expects diluted earnings per share to be in the range of $4.50 to $4.90 on adjusted basis for the same period.
Operating cash flow improves significantly
Monsanto Company has generated cash of $690 million from operating activities during the nine month period, up 66.27 percent or $275 million, when compared with the last year period.
The company has spent $752 million cash to meet investing activities during the nine month period as against cash outgo of $639 million in the last year period.
The company has spent $4 million cash to carry out financing activities during the nine month period as against cash outgo of $2,233 million in the last year period.
Cash and cash equivalents stood at $1,614 million as on May 31, 2017, up 33.94 percent or $409 million from $1,205 million on May 31, 2016.
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