Monsanto Plans To Cut $400M In Costs

Monsanto plans to cut costs by $400 million this year to offset an expected reduction of $400 million in Roundup weed-killer sales, according to the St. Louis Business Journal.

"We recently implemented a number of cost-saving actions across the company," said spokesman Lee Quarles recently, including a hiring freeze, no overtime, less contractor work, and limitations on travel and off-site meetings. "Only ‘business critical’ travel will be permitted."

Quarles said no payroll reductions, such as layoffs or pay cuts, have been implemented other than the hiring freeze, overtime ban, and contractor reductions.

On May 27, Monsanto said that fiscal 2009 earnings would be at the low end of its previously announced guidance of $4.40 to $4.50 a share. The problem? Lower sales of Roundup because of cold, wet weather in the U.S., which led to oversupply and price cutting by generic competitors, particularly Chinese makers.

(Source: St. Louis Business Journal)

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3 comments on “Monsanto Plans To Cut $400M In Costs

  1. Anonymous

    When there is a $35 difference on my price sheet between Roundup and good quality generics, it’s no wonder Monsanto is losing Roundup sales. ‘Roundup Rewards’ just doesn’t justify the cost difference.

  2. Anonymous

    This all started last spring when Monsanto made the decision not to inventory protect product in the dealers tank. That is when I decided not to refill my tanks in the fall nor buy any product this spring until absolutely necessary. Monsanto’s refusal to acknowledge the true market for glyphosate is just their way of scamming investors. Sales are impacted by weather, but this time it is just because of the St. Louis fat cats putting their head in the sand.

  3. Anonymous

    MONSANTO PRODUCT MANAGERS OBVIOUSLY MIS-READ THE

    MARKET.I PURCHASED $75 PER GAL ROUNDUP WX MAX AND

    NOW CAN BUY GLYPHOSATE FOR $15-$20 PER GAL.!!!

    MONSANTO’S RESPONSE WAS ” WE WILL HELP YOU OUT,

    NEXT YEAR”!!! THERE WON’T BE A “NEXT YEAR”

    FOR BRANDED ROUNDUP IN MY TANKS!!!