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Released January 07, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Monsanto Company (NYSE:MON) (St. Louis, Missouri) plans to eliminate an additional 1,000 employee positions through 2018 as it drives to achieve annual savings of $500 million, the agrochemical and biotechnology company reported Wednesday. Sales for fiscal first-quarter 2016 fell nearly 23% to $2.22 billion from the same quarter a year earlier, and the company swung to a net loss of $253 million largely as a result of restructuring charges. Industrial Info is tracking 27 active Monsanto projects worth $1.27 billion including expansions, upgrades, closures and maintenance.
Monsanto's revised restructuring plan increases the number of employee positions to be eliminated from 2,600 to 3,600, or 16% of the global workforce. The company earlier sought a 12% reduction. The restructuring will result in an estimated charge ranging from $1.1 billion to $1.2 billion. For related information, see October 8, 2015, article - Monsanto Slammed by Weak Prices for Corn, Other Crops in Fiscal 2015, Plans to Slash Work Force by 12%.
As part of the restructuring, Monsanto plans to create four strategic commercial hubs and a global research and development (R&D) center. Located in Chesterfield, Missouri, the R&D center involves a $200 million expansion. The new 400,000 square-foot facility at the location is expected to be completed in late 2016.
Company executives blamed the decline in first-quarter sales on weaker foreign currencies, glyphosate pricing and lower corn volumes in Latin America. Chief Financial Officer Pierre Courduroux said during the earnings conference call that Brazil's currency accounted for about half of the decline in ongoing earnings per share during the quarter. Nonetheless, the results were better than expected, according to the company. A recent currency devaluation in Argentina will take a bite out of earnings going forward, Courduroux said.
Monsanto President Brett Begemann noted the company has closed on multiple supply agreements to provide the herbicide dicamba, and "together with our pending self-manufacturing plans are expected to provide a balanced approach to cost-effective dicamba supply."
The company's planned dicamba herbicides plant expansion in Luling, Louisiana has a total investment value of $1 billion. Jacobs Engineering Group (NYSE:JEC) (Pasadena, California) was performing preliminary design work on the project, which has a tentative kickoff in first-quarter 2017, with completion in mid-2018. The project still is in the planning stages, where plenty of factors still could increase, decrease or totally eliminate the expected spending.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Monsanto's revised restructuring plan increases the number of employee positions to be eliminated from 2,600 to 3,600, or 16% of the global workforce. The company earlier sought a 12% reduction. The restructuring will result in an estimated charge ranging from $1.1 billion to $1.2 billion. For related information, see October 8, 2015, article - Monsanto Slammed by Weak Prices for Corn, Other Crops in Fiscal 2015, Plans to Slash Work Force by 12%.
As part of the restructuring, Monsanto plans to create four strategic commercial hubs and a global research and development (R&D) center. Located in Chesterfield, Missouri, the R&D center involves a $200 million expansion. The new 400,000 square-foot facility at the location is expected to be completed in late 2016.
Company executives blamed the decline in first-quarter sales on weaker foreign currencies, glyphosate pricing and lower corn volumes in Latin America. Chief Financial Officer Pierre Courduroux said during the earnings conference call that Brazil's currency accounted for about half of the decline in ongoing earnings per share during the quarter. Nonetheless, the results were better than expected, according to the company. A recent currency devaluation in Argentina will take a bite out of earnings going forward, Courduroux said.
Monsanto President Brett Begemann noted the company has closed on multiple supply agreements to provide the herbicide dicamba, and "together with our pending self-manufacturing plans are expected to provide a balanced approach to cost-effective dicamba supply."
The company's planned dicamba herbicides plant expansion in Luling, Louisiana has a total investment value of $1 billion. Jacobs Engineering Group (NYSE:JEC) (Pasadena, California) was performing preliminary design work on the project, which has a tentative kickoff in first-quarter 2017, with completion in mid-2018. The project still is in the planning stages, where plenty of factors still could increase, decrease or totally eliminate the expected spending.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
