Monsanto Can Thank Surging Demand And Strong Industry Network For Positive Earnings
(NewsVisual, powered by IntellectSpace) -- Monsanto Co (NYSE: MON) saw a big earnings boost in its third quarter, driven by growing demand, which led the seed company to once again up its fiscal-year outlook.
In the previous quarter ended in May, Monsanto said that its net income jumped by 43% and total revenue reached $3.59 billion. Though many US company's are feeling the pinch due to worries about the economy, Monsanto appears to be thriving.
As the world's largest seed producer, record grain prices means good news for the company, which attributed high demand as the reason for its latest success.
After realizing the better than expected results, Monsanto raised its outlook for the fourth time. The news is positive, however, analysts are expecting a slight loss in the fourth quarter, which is typically more influenced by its cotton and agricultural herbicides businesses and usually sparks a brief downturn (see article from The Wall Street Journal).
An IntellectSpace Knowledge Map reveals how Monsanto's Directors may have used industry connections to help keep the company at the top of its game.
As illustrated in this Knowledge Map, every Director at Monsanto holds significant leadership and board positions with other noteworthy corporations. John W Bachmann has had a long career with Edward Jones, and is now a Senior Partner. Arthur H Harper allows Monsanto to retain strong ties to key media resources, as he is a Director at major publisher Gannet. Robert J Stevens and Gwendolyn S King are each well connected to advanced technology firm Lockheed Martin, where Stevens is Chairman/CEO and King is a Director.
A number of the Directors also serve on the boards of major biotechnology and pharmaceuticals companies. Frank V Atlee is a Director at Antigenetics and Nereus Pharmaceuticals, and George Poste is a Member of the Board at Exelixis Inc and Orchid Cellmark. These relationships could prove very useful for Monsanto as it plans its latest biotech research-and-development projects.
Solid experience and a diverse corporate network will likely serve Monsanto well in the next year, allowing the company to well-equipped to take advantage of industry trends and demands in order to capitalize on growing markets in agribusiness and biotechnology.
Click here for an interactive version of this IntellectSpace Knowledge Map.
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