About Reynolds Farm Equipment

Reynolds Farm Equipment has been an authorized John Deere dealer serving central Indiana since 1955. We are an authorized John Deere dealer that markets John Deere Tractors, John Deere Farm Equipment, John Deere Agricultural Equipment, John Deere Commercial Worksite Equipment, John Deere Golf and Turf Equipment, John Deere Lawn and Garden Equipment, John Deere New Parts, John Deere Used Parts, John Deere Tractor Parts, and John Deere Toys. Our blog, John Deere Stuff, will provide you with useful information related to our business in the farming equipment industry.

If you are looking for further John Deere information or products, visit the Reynolds Farm Equipment website.

Monday, October 27, 2008

Monsanto Cites Strong Demand

Seed and herbicide supplier Monsanto Co. said global agricultural demand remains strong and U.S. farmers still have ample access to credit despite the turmoil in financial and commodity markets.

Monsanto says agricultural demand is still healthy globally. Pictured here is a researcher at the company's Peyrehorade laboratory in France.

The world's largest producer of traits and seeds by revenue has seen its market capitalization halved over the past 10 weeks as investors worry about the outlook for demand and pricing for crops.

Monsanto Chief Executive Hugh Grant said that, despite the gyrations in commodity prices, demand fundamentals remain intact for the company's corn, soy and vegetable seeds and traits, which offer protection against pests and drought.

The St. Louis company on Wednesday increased its long-term profit forecast amid acquisitions and new-product launches.

Mr. Grant said gross profit in 2012 is expected to reach $9.5 billion to $9.75 billion, ahead of what he described as a "bold" forecast given by the company last November. Monsanto also issued a 2009 earnings forecast, which undershot analysts' estimates. "We do control the factors that truly drive our business," Mr. Grant said on a call with analysts to discuss the company's fiscal 2008 results.

While acknowledging demand growth may fluctuate, he expressed confidence that the combination of rising protein consumption in emerging markets and low commodity stocks will boost earnings. He also said Monsanto would continue to create new products that would command premium prices.

Terry Crews, Monsanto's chief financial officer, said farmers in the U.S., Brazil and Argentina still enjoyed access to credit from government sources, banks and vendors. Tougher financing conditions have contributed to sharp falls in the share prices of equipment manufacturers such as Deere & Co. But Monsanto executives say seeds are the last input that farmers would seek to curb.

Mr. Crews said price increases for its seeds and traits in the U.S. are expected to be above its targeted 16%-18% range next year, with volume growth in the low single-digits.

Monsanto reported a net loss of $172 million, or 31 cents a share, in its fiscal fourth quarter, which ended Aug. 31. This compares with a net loss of $210 million, or 39 cents a share, a year earlier, in what is traditionally the company's weakest quarter.

Revenue climbed 35% to $2.05 billion, while the gross profit margin rose to 46.8% from 42.4%.

The fourth-quarter performance was foreshadowed last week when Monsanto boosted its fiscal 2008 guidance for the seventh time this year.

Sales for the segment that includes the company's seeds and traits business increased 27% to $941 million as corn sales rose 3% and soybean sales more than doubled.

Revenue increased 43% to $1.11 billion for Monsanto's agricultural-productivity products, which include the company's Roundup lawn-and-garden herbicide as well as crop-protection, herbicide and animal-agriculture products.

The company projected earnings of $4.20 to $4.40 a share for the new fiscal year, below analysts' expectations for net income of $4.62 a share. For fiscal year 2008, Monsanto posted net income of $3.62 a share.