UPDATE 1: Monsanto Projects FY09 Results at Low End of Forecast – Reuters

Monsanto Faces Strong Competition, Lowers Earnings Outlook for FY 2009

Monsanto Co announced that it now anticipates its fiscal-year results will align with the lower end of its earnings forecast due to unexpectedly strong competition in the herbicide market. This news led to a drop in the company’s shares by more than 4 percent.

For the fiscal year ending August 31, the leading seed company expects ongoing earnings of approximately $4.40 per share, the minimum of its previously announced range of $4.40 to $4.50.

Additionally, Monsanto projected third-quarter earnings of $1.15 per share, falling short of analysts’ expectations of $1.58, as reported by industry estimates.

The company also forecasts generating about $1.4 billion in free cash flow for the entire year.

As a result of this outlook, shares of the St. Louis-based firm fell by 4.1 percent to $81.78 in premarket trading.