Monsanto’s Profit Edges Up After Spinoff

Monsanto Co. said Friday that its fourth-quarter earnings rose 1.1%, in line with expectations, to cap a year in which the company moved to shed its remaining chemicals business and establish itself as a dominant force in agricultural biotechnology.

Profit from operations rose to $90 million, or 15 cents a share, from $89 million, also 15 cents a share, in the year-earlier period. The results were just short of the 16-cents-a-share forecast by analysts.

St. Louis-based Monsanto took a fourth-quarter charge of $500 million, or 84 cents a share, to cover the cost of spinning off its chemicals operations and firing up to 2,500 workers. The company announced in December it would take a charge of $400 million to $600 million.

Monsanto shares fell $1 to $37.50 on the New York Stock Exchange.

Over the last year, Monsanto has spent about $1.8 billion on acquisitions, including its agreement earlier this month to buy Holden’s Foundation Seeds Inc. for $1.02 billion. The acquisition, which will give Monsanto a distribution network for its plant biotechnology, didn’t affect fourth-quarter results.

At a Glance:

Black & Decker Corp. reported a 25% drop in fourth-quarter profits despite record sales, attributing the decline partly to lower profitability in its power tools and accessories. The Towson, Md.-based company reported net income of $90.6 million, or 94 cents a share, for the quarter, compared with $120 million, or $1.26 a share, in the 1995 period, in line with analysts’ expectations.

Sears, Roebuck & Co. reported fourth-quarter profit jumped 25% as it enjoyed robust holiday sales. Sears earned net income of $567 million, or $1.42 a share, from $455 million, or $1.13 a share, a year earlier.

American Brands Inc. reported better-than-expected fourth-quarter profit of $173.5 million, or $1.01 a share, from $166.3 million, or 92 cents, a year earlier.

Singer Co. reported an unexpected fourth-quarter loss of $20 million, or 39 cents a share, compared with net income of $34.3 million, or 66 cents, a year earlier.

Ralcorp Holdings Inc. reported first-quarter net income of $13.1 million, or 40 cents a share, compared with $14.7 million, or 44 cents, in the year-ago quarter. The results include a $2.9-million restructuring charge, or 9 cents per share.

Starbucks Corp. said fiscal first-quarter earnings rose 50% to $14.4 million, or 18 cents a share, from $9.57 million, or 13 cents, a year earlier.

Imperial Bancorp reported that fourth-quarter net income rose 15% to $10.0 million, or 41 cents per share, compared with $8.7 million, or 37 cents, in the year-ago quarter.

T. Rowe Price Associates Inc.’s fourth-quarter net income increased 27% to a quarterly record of $27.6 million, or 44 cents a share, from $21.7 million, or 35 cents, in the three-month period ended Dec. 31.

DSC Communications Corp. reported better-than-expected fourth-quarter earnings of $17.5 million, or 15 cents a share, compared with $49.4 million, or 42 cents, a year earlier.

Premark International Inc. said fourth-quarter earnings rose 48% to $32.0 million, or 48 cents a share, compared with profit from continuing operations of $21.6 million, or 34 cents, in the year-ago quarter.

Western Resources reported fourth-quarter net income of $32.5 million, or 48 cents per share, compared with $46.5 million, or 69 cents, in the year-ago quarter.

Morrison Knudsen Corp., marking the first quarter after its merger with Washington Construction Group Inc., reported fourth-quarter profit of $5.6 million, or 11 cents per share, from $2.9 million, or 10 cents, in the year-ago period.