Full year net sales are now expected to be in the range of $17 billion and $17.3 billion
Corteva provided preliminary net sales and earnings results for the quarter ended September 2023 and an update for its expectations for full year 2023 net sales and earnings. Third quarter net sales are expected to be approximately $2.6 billion. Third quarter GAAP income and earnings per share (EPS) from continuing operations are expected to be a loss of approximately $315 million and $0.45 per share, respectively. Operating EBITDA is expected to be approximately $18 million for the period, with Operating EPS1 expected to be a loss of approximately $0.23 per share.
Management lowered the company’s full year 2023 net sales and earnings guidance in light of evolving market dynamics in Brazil, including: significant delay in orders due to just-in-time farmer purchases on both plantings and crop, ongoing channel inventory destocking in Brazil crop chemicals, pricing and volume pressures in crop chemicals associated with elevated generic imports and lower fourth quarter seed deliveries impacted by lower Summer corn planted area and potentially delayed and reduced Safrinha planted area for the 2023/2024 crop season
“Third quarter results and the performance of our operations were broadly aligned with expectations around the globe. However, early fourth quarter indicators from Brazil have caused us to recalibrate sales and earnings estimates in both Seed and Crop Protection for the remainder of the year given the significance of Brazil to our fourth quarter business. The change in order patterns and planted area intentions, together with additional Crop Protection volume and pricing pressures in Brazil, is now included in our updated guidance," said Chuck Magro, Corteva Chief Executive Officer.
"I am pleased with the EBITDA margin improvement we’ve delivered so far this year through strong pricing, product mix improvement, as well as productivity and cost actions,” continued Magro. “We will discuss early views on our 2024 outlook on our third quarter earnings call on November 9th. Meanwhile, we remain committed to $750 million of share repurchases in 2023."
Full year net sales are now expected to be in the range of $17 billion and $17.3 billion, with Operating EBITDA expected to be in the range of $3.25 billion and $3.45 billion. Full year 2023 Operating EPS is now expected to be in the range of $2.50 and $2.70 per share.
The company 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.
The select financial information provided in this release is preliminary.
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