By Carey Gillam
KANSAS CITY, Missouri (Reuters) - Global agribusiness company Monsanto Co
Shares rose 3 percent in premarket trade as the market applauded the company's sales strength in the United States and Latin America.
The company said net income for the third quarter ending May 31 totaled $680 million, up from $384 million in the same period a year earlier. Earnings per share were $1.26, compared with 70 cents a share a year ago, or 81 cents a share on an ongoing basis. Analysts had expected $1.11.
The company raised its full-year earnings guidance, with full-year 2011 ongoing earnings now seen in the range of $2.84 to $2.88, up from $2.72-$2.82. Full-year 2011 EPS guidance on an as-reported basis is expected in the range of $2.82-$2.86, up from $2.66-$2.79.
Monsanto also said it was raising its expectations for free cash flow for 2011 to $1.1 billion-$1.3 billion from $900 million-$1.1 billion
The quarterly results were clouded partially by Monsanto's announcement that it was under investigation by the Securities and Exchange Commission regarding Monsanto's customer incentive programs related to its glyphosate products for fiscal years 2009 and 2010.
The company said investigators have subpoenaed documents related to the programs and company officials are cooperating.
Glyphosate, the key ingredient in Monsanto's Roundup herbicide, was once a key driver of revenues. But the company has seen glyphosate-related profit erode over the last several years amid stiff competition.
(Reporting by Carey Gillam, editing by Gerald E. McCormick, Dave Zimmerman)
