The company continued to drive productivity progress in thefirst half, which partially offset the impact of ongoing market driven cost headwinds.
American agricultural chemical and seed company Corteva Agriscience reports net sales for the first half of 2021 grew 7% versus prior year. Organic sales rose 6% during the same period. Volume and price gains and continued penetration of new products together reflected strong execution globally. Organic sales increased in every region, with double-digit growth in Latin America.
Meanwhile, crop Protection net sales grew 12% and organic sales increased 10% for the first half. Sales of new products rose approximately $260 million versus the first half 2020. Seed net sales increased 5% and organic1 sales grew 4% compared to the year-ago period. Gains were led by strong corn sales in Latin America, together with increased North America planted area and penetration for Enlist E3 2 soybeans. Corn price was up 3% globally.
GAAP income and earnings per share (EPS) from continuing operations were $1.6 billion and $2.18 per share for the first half 2021, respectively.
Strong price execution and volume gains in both segments drove Operating EBITDA improvement of 17% to $2.37 billion, as compared to the same period last year.
The company continued to drive productivity progress in thefirst half, which partially offset the impact of ongoing market driven cost headwinds.
The management of Corteva increased full year 2021 net sales and earnings guidance; and expects net sales in the range of $15.2 billion to $15.4 billion. Operating EBITDA is expected to be in the range of $2.5 billion to $2.6 billion.
For the second quarter ended June 30, 2021, net sales increased 8% versus the same period last year. Organic sales rose 6%, with increases in most regions. Volume grew 5% versus the prior-year period, driven primarily by seasonal timing and increased soybean acres in North America, together with continued adoption of new technology in both segments. Demand for new and differentiated Crop Protection products drove double-digit net sales growth for the segment, with an organic1 sales increase of 8%.
Updated 2021 Outlook
The company updated its previously provided guidance for the full year 2021 – increasing sales and earnings expectations for this period. Corteva expects net sales in the range of $15.2 billion to $15.4 billion, which at the mid-point represents expected net sales growth of 8% for the year.
The company expects operating EBITDA to be in the range of $2.5 billion to $2.6 billion, which at the midpoint represents expected Operating EBITDA1 growth of 22% for the year. Operating EPS is expected to be in the range of $2.00 and $2.10 per share. Corteva is not able to reconcile its forward-looking non-GAAP financial measures to its most comparable U.S. GAAP financial measures, as it is unable to predict with reasonable certainty items outside of its control, such as Significant Items, without unreasonable effort.