("Monsanto 2Q Net Rises 3.3% On Strong Seeds, Genomics Business," published at 8:33 a.m. EDT, incorrectly stated in the headline and text that net income rose. The correct version follows.)

 
   DOW JONES NEWSWIRES

Monsanto Co.'s (MON) fiscal second-quarter net income fell 3.3% on charges related to in-process research and development despite increased sales.

Many farmers have opted to delay buying fertilizer ahead of the planting season, leaving sellers stuck with highly priced inventory produced during last year's boom. Analysts and investors will be watching Monsanto's results closely to get an idea of demand for seeds.

The world's largest seed supplier in terms of revenue has said it expects the second and third quarters to be the primary drivers for full-year results since they reflect the relative size of its U.S. business, which is planting during those periods, and the importance of its seeds-and-traits business.

Monsanto's shares were up 1.4% at $82.90 in premarket trading. The stock is up 16% so far this year through Wednesday's close, outperforming the broader stock market.

Chief Executive Hugh Grant said Thursday the company remains on track for earnings to grow more than 20% for the fiscal year.

For the period ended Feb. 28, Monsanto posted net income of $1.09 billion, or $1.97 a share, down from $1.13 billion, or $2.02 a share, a year earlier. The latest results included 19 cents in charges related to in-process research and development, while last year's included a 25-cent loss related to a claim settlement and discontinued operations. Excluding items, earnings rose to $2.16 from $1.77.

In February, the company reiterated its expectations for earnings of $1.97 and $2.01, which was still below analysts' estimates at the time.

Revenue increased 8.3% to $4.04 billion, driven by increased sales from the U.S. corn and soybean seeds and traits businesses, partly offset by a drop in sales of its Roundup brand of herbicides.

Analysts polled by Thomson Reuters expected earnings of $2.06 and revenue of $4.14 billion.

Gross margin rose to 62.5% from 59.3%.

Sales in the seeds and genomics segment - which includes the company's global seeds and traits business and genetic-technology platforms, increased 19% to $3.04 billion on the increased U.S. sales of corn and soybean seed and traits as well as the continued adoption of its higher-margin triple-stack corn technology.

Revenue from Monsanto's agricultural-productivity products - including the company's Roundup lawn and garden herbicide as well as crop-protection, herbicide and animal-agriculture products - fell 16% to $993 million.

The company affirmed its fiscal-year outlook for earnings of $4.40 to $4.50. Analysts expected $4.69 on revenue of $13.1 billion.

Monsanto posted a small victory in February, when France's food watchdog said it had concluded the company's genetically modified corn is safe, contradicting an earlier report that led to a ban on the corn. The report angered environmentalists and embarrassed French President Nicolas Sarkozy's government, which had resorted to a special European Union measure to outlaw the crops.

The company boosted its quarterly dividend by 10% in January, a sharp contrast to most companies across all segments, who have been cutting payouts to save cash.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com