Generic versions of Roundup cutting into Monsanto earnings, revenue

Monsanto, the world's largest seed manufacturer, says sales of generic versions of its Roundup herbicide slashed third-quarter earnings and revenue.

The St. Louis-based company, which has seed operations in Williamsburg, said its net income dropped to $384 million, or 70 cents a share, in the quarter that ended May 31, from $694 million, or $1.25 a share, a year ago. Revenue fell to $2.96 billion from $3.16 billion a year ago.

As Roundup sales have flagged, Monsanto has accelerated its longterm strategy to shift its business from chemicals and herbicides to genetically altered seeds. But the declines in Roundup have been substantial as generic competition from China has expanded.

Sales in Monsanto's agricultural productivity unit, which includes Roundup, fell 34 percent to $600 million in the third quarter. Seeds and genomic sales, by contrast, rose 5 percent to $2.36 billion from the third quarter of 2009.

Corn seed sales remained flat at $1 billion, while soybean sales rose 2 percent to $549 million.

Monsanto shares slipped $1.07, or 2.2 percent, to $46.27 in mid-morning trading on the New York Stock Exchange.