Corteva raises sales view again as seed, insecticide demand booms
By Arathy S Nair
Nov 3 (Reuters) - Corteva Inc raised its 2021 sales forecast for a second time this year on Wednesday and posted a smaller-than-expected quarterly loss, benefiting from higher prices and strong demand for its insecticides and seeds.
A jump in rates for U.S. corn and soybean 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 $15.5 billion and $15.7 billion, compared with its previous forecast of $15.2 billion and $15.4 billion.
It also raised its operating earnings per share forecast to a range of $2.05 to $2.15 per share, from $2.00 to $2.10 per share previously.
Strong sales of new products such as Isoclast insecticide and Arylex herbicide and a 3% price increase boosted the company's crop protection business in the third quarter, while the seed unit benefited from a 19% hike in prices and an 18% jump in volumes.
The Wilmington, Delaware-based company's sales rose 27.3% to $2.4 billion, topping market estimates of $2.03 billion, according to Refinitiv.
Operating loss before interest tax, depreciation and amortization narrowed to $51 million, or 14 cents per share, from $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. (Reporting by Arathy S Nair in Bengaluru; Editing by Aditya Soni)
