Seed company says earnings have doubled

Seed company Monsanto Co. said Wednesday its second-quarter earnings more than doubled on increasingly strong sales of corn seed and herbicide in the United States. But the company’s profit forecast for 2008 appeared to disappoint Wall Street.

Monsanto earned $1.13 billion, or $2.02 a share, in the three months that ended Feb. 29, up from $543 million, or 98 cents a share, in the prior year. Its revenue jumped 45 percent to $3.8 billion from $2.6 billion in the prior-year period. The company said corn seed sales were a standout during the quarter, jumping to $1.7 billion from $1.2 billion during the same period a year before.

The results surpassed the expectations of analysts surveyed by Thomson Financial, who predicted earnings of $1.72 a share. The analyst estimates typically exclude one-time items.

The company forecast 2008 profits of between $3.15 and $3.25 a share on an ongoing basis. Analysts polled by Thomson Financial had predicted earnings of $3.20 a share. Monsanto earned $1.79 a share in its last fiscal year ended Aug. 31.

•Harley-Davidson Inc. has signed a tentative four-year labor agreement with its largest Wisconsin labor unions, a move that industry analysts say is welcome because it lessens the risk of a strike and production disruptions.

The agreement covers more than 2,100 Harley employees and is scheduled to be voted on Friday by the United Steelworkers and International Association of Machinists and Aerospace Workers.

Most of the employees are represented by Steelworkers Local 2-209 and work at Harley facilities in the Milwaukee area.

In 2006, Local 2-209 agreed to lower wages for future employees in exchange for production expansions in the Milwaukee area. By accepting the cuts, the Steelworkers ensured that production of transmissions and engines for Harley motorcycles would remain in the area and in jurisdiction of the union, at least for a while.

•Best Buy Co., the nation’s largest consumer electronics retailer, said Wednesday its fourth-quarter earnings slipped 3 percent as customer traffic slowed after the holidays, but still beat Wall Street expectations.

Its outlook for this year also beat expectations although its guidance depends on a strong second half of the year.

The Richfield, Minn.-based company said its profit fell to $737 million, or $1.71 a share, in the quarter that ended March 1, from $763 million, or $1.55 a share last year. Earnings per share rose because there were fewer shares outstanding in the most recent quarter.

Revenue rose 4 percent to $13.42 billion from $12.9 billion a year ago. Analysts expected revenue of $13.19 billion.