Roundup, the former cash cow of Monsanto
Monsanto's saving grace, its seeds business, continues to grow. Sales rose 6.8% in its second fiscal quarter. That's not bad, since it competes with offerings from DuPont
In order to accelerate seed sales, Monsanto needs to convince farmers that its new higher-yield seeds -- SmartStax corn and RoundUpReady2 soybean -- are worth the added cost. So far, that isn't happening en masse
Corn prices, which have fallen since the beginning of the year, haven't exactly helped the situation. Like Agrium
After a couple of disappointing quarters, Monsanto warned that it'll likely be at the low end of its previous non-GAAP guidance of $3.10 to $3.30 per share. The company also said it's unlikely to hit its long-term goal of doubling 2007 gross profits by 2012.
That's disappointing for investors, but at least the company isn't making any stupid short-term decisions just to reach a self-inflicted goal. Getting the trains back on the track may take longer than expected, but the long-term health of the company seems viable.