DOW JONES NEWSWIRES - Monsanto Co.'s (MON) fiscal second-quarter earnings fell 19% as lower prices for Roundup and other herbicides hurt sales and margins, though the company's seeds and trait segment continued to see growth.

The agribusiness giant also said it expects fiscal-year earnings at the low end of its prior estimate and admitted it is unlikely to meet its five-year goal of doubling profit by 2012.

Shares were up 26 cents at $69.79 in recent premarket trading even as the results missed analysts' expectations. The stock is down roughly 15% this year, while the market has rallied.

"Over the course of a five-year operational plan, the landscape can change," Chairman and Chief Executive Hugh Grant said. "While there may be options to make an accelerated push for 2012, it's clear to me that achieving that objective would involve making short-term choices that are not in the long-range interests of the business."

The company has been shifting more resources toward selling genetically modified seeds as it contends with declining profits at its weed-killer business. This year's growing season will be crucial for Monsanto, which has posted losses in the past two quarters.

Monsanto's strategy hinges on persuading farmers to buy the more expensive new offerings as global agricultural earnings remain under pressure from declining global commodity prices. The company also expects to reap savings from the restructuring of its Roundup crop-protection business, which has been hard hit by increasing competition from generic rivals.

For the quarter ended Feb. 28, the world's largest seed company reported a profit of $887 million, or $1.60 a share, down from $1.09 billion, or $1.97 a share, a year earlier. Excluding items, such as restructuring and acquisition-related costs, earnings fell to $1.70 a share from $2.16 a share. Revenue decreased 3.6% to $3.89 billion amid lower Roundup and other herbicide prices.

Analysts polled by Thomson Reuters forecast earnings of $1.73 a share on revenue of $3.93 billion.

Gross margin fell to 54% from 62%.

Sales of Roundup and other herbicides fell 35% on lower prices and sales incentives.

Revenue for seeds and genomics increased 7%, with corn seed and traits sales up 8% on strong growth in Brazil, the U.S. and Argentina. Soybean seed sales rose 3%.

For the fiscal year, the company estimated earnings at the low end of its prior view of $3.10 to $3.30 a share.

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