Monsanto Stresses Profitability over Sales

Abstract

Monsanto plans to emphasize increased profitability more than sales alone in several product areas over the long term, according to the company's chief economist, A. Nicholas Filippello. Those product areas are pharmaceuticals, crop chemicals, animal sciences, high-value plastics, fibers, and resins. Speaking at a press briefing in New York City, Filippello said Monsanto's fibers business, once a star performer, has recovered so well that nylon is now a strong product and fibers are making good money today, though at one time that business was a candidate for sale. Because of industry capacity rationalization, nylon and acrylic fiber capacities in the U.S. are currently in better balance with demand, he says. Although he forecasts a 1 to 2% growth in consumer spending on goods, he expects textile sales will hold their own, making the near-term outlook for carpet a good one. The recent slowdown in new construction has not greatly hurt the nylon fiber producer ...