Reuters – Corteva raised its 2021 sales forecast for a second time this year Nov. 3, and posted a smaller-than-expected quarterly loss, benefiting from higher prices and strong demand for its insecticides and seeds.
A jump in price for corn, soybean and other crops has brightened the financial outlook for farmers who have started pre-buying seeds and chemicals to secure supplies for next spring amid sector-wide supply chain problems.
Corteva, spun off in 2019 after a merger of Dow Chemical and DuPont, said it expected net sales between US$15.5 billion and US$15.7 billion, compared with its previous forecast of US$15.2 billion and US$15.4 billion.
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Strong sales of new products in the U.S., such as Isoclast insecticide and Arylex herbicide and a three per cent price increase boosted the company’s crop protection business in the third quarter, while the seed unit benefited from a 19 per cent hike in prices and an 18 per cent jump in volumes.
The Wilmington, Delaware-based company’s sales rose 27.3 per cent to US$2.4 billion, topping market estimates of US$2.03 billion, according to Refinitiv.
Operating loss before interest, tax, depreciation and amortization narrowed to US$51 million, or 14 cents per share, from US$179 million, or 39 cents per share, a year earlier.
That compared with analysts’ average estimate for a loss of 31 cents.
Corteva last week named ex-Nutrien head Chuck Magro as its chief executive officer, after its previous CEO retired under activist investor Starboard Value LP’s push to oust him.
