The US chemicals company Monsanto recently announced record earnings for 1996, excluding a one-off charge. The company had a net loss of US$ 410 million in the quarter, compared with profits of US$ 80…
The US chemicals company Monsanto recently announced record earnings for 1996, excluding a one-off charge. The company had a net loss of US$ 410 million in the quarter, compared with profits of US$ 80 million in the year-earlier period. There was, however, a US$ 500 million non-recurring charge. The charge was for a reserve to cover expenses associated with the spin-off of its chemicals operations and other restructuring actions. The spin-off, pending certain government approvals, is expected to take place in 1997. Revenues for the quarter totalled US$ 2.2 billion, compared with US$ 2.1 billion in 1995“s final period. Operating income for the chemicals businesses reportedly increased as volumes rose and some price increases were implemented. For the full year, excluding the restructuring charge, Monsanto earned US$ 885 million, or US$ 1.48 a share, compared with US$ 728 million, or US$ 1.25, for the full year 1995. Revenues for the year were US$ 9.3 billion, up from US$ 8.9 billion a year earlier. Mr Robert Shapiro, Monsanto chairman, said: “We“re spinning off our chemicals businesses, so they can create the greatest possible value for shareholders.” He continued: “We“ve created a leadership position for Monsanto in the emerging life sciences field through our own research and product development, and through acquisitions and partnerships.” Monsanto said that spending on acquisitions, research and technology, and product launches increased by about US$ 350 million over the amount spent in 1995.