Corteva Exceeds Earnings Estimates on Strong Demand for Crop Protection Products

0

The logo of Corteva Agriscience, a former division of DowDuPont, is displayed on a screen at the New York Stock Exchange (NYSE) in New York, U.S., June 3, 2019. REUTERS/Brendan McDermid

Join now for FREE unlimited access to Reuters.com

Register

May 4 (Reuters) – Corteva Inc (CTVA.N) reported a 19.6% rise in first-quarter operating profit on Wednesday, which beat Wall Street estimates, driven by strong demand for crop protection such as herbicides and insecticides.

A spike in corn and soybean prices encouraged U.S. farmers to pre-purchase seeds and chemical sprays for the spring season after the Russian-Ukrainian conflict disrupted supplies from key exporting regions.

“We are seeing customers are motivated to get the product now given the tight supply chains. We continue to see strong demand for new products as farmers prioritize technology for better yield,” said a company spokesman told Reuters.

Join now for FREE unlimited access to Reuters.com

Register

Sales of Corteva’s crop protection products increased 23% in the quarter, driven by strong initial demand for herbicides in North America due to supply issues.

“Looking forward, we expect healthy market fundamentals to continue given record crop prices, high farm income levels and global food demand,” chief executive Chuck Magro said in a statement. communicated.

Corteva said its net seed sales increased 1%, helped by an 8% price increase.

Net sales for the Wilmington, Delaware-based company rose 10.12% to $4.6 billion, beating market estimates of $4.5 billion, according to Refinitiv.

Corteva said adjusted operating income was $708 million, or 97 cents per share, in the three months ended March 31, compared with $592 million, or 79 cents per share, a year earlier. early. Analysts, on average, had expected earnings of 82 cents per share.

The company also revised its full-year 2022 operating earnings per share guidance to between $2.35 and $2.55 to reflect a lower average number of shares.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Rithika Krishna in Bengaluru; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.

Share.

Comments are closed.