On Wednesday, Monsanto Company (NYSE: MON), which is a U.S. seeds and agrochemicals company, announced its financial results for the fourth quarter and fiscal year 2017. Shares of the company increased around 1% to $120.65 per share in premarket trading on Wednesday.
According to the company, net income for the fourth quarter was $20 million, or $0.05 per share, compared with a net loss of $191 million, or $0.44 per share for the same period last year. Adjusted earnings per share was $0.20 for the fourth quarter, which beat analysts’ estimates of a net loss of $0.41 per share. The strong results were due to tax benefits and a pretax benefit of $200 million, according to Monsanto.
Net sales for the fourth quarter increased 4.8% to $2.68 billion, beating estimates of $2.52 billion. Sales of corn seeds and traits, which is the biggest segment by revenue, increased around 16%. Soybean seeds and traits sales were also up 22% in the fourth quarter.
For the fiscal year 2017, the company reported net sales of $14.6 billion, increasing over $1 billion year-over-year. The company said that the increase was mainly due to the record technology adoption for the newest soybean technologies across the Americas. Net income for the full year was around $2.3 billion, increasing from the $1.3 billion in fiscal year 2016.
“Our record sales and gross profit in the Seeds and Genomics segment this year, fueled by the outstanding penetration of our latest soybean and cotton technologies and continued adoption of our newest corn hybrids around the world, reflects the need for new solutions in what continues to be a challenging ag economy,” Hugh Grant, the chairman and chief executive officer of Monsanto, said in the statement on Wednesday.
“Our proven ability to innovate and our unique platform advantages position us well to meet the production challenges of today, as well as the demands of tomorrow,” he said.