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Sep 30, 2020
Corteva Q3 2020 Earnings Report
Corteva reported a decrease in net sales but an increase in organic sales for the third quarter of 2020. The company saw growth in crop protection sales, offset by a decline in seed sales due to timing shifts in North America. Cost synergies and productivity efforts contributed to margin expansion.
Key Takeaways
Corteva's third-quarter results showed a mixed performance with a 3% decrease in net sales, totaling $1.86 billion, but a 9% increase in organic sales. The company experienced a GAAP loss of $(390) million, or $(0.52) per share. Crop Protection net sales grew by 9%, while Seed net sales decreased by 23%. The company is affirming its full-year guidance for 2020.
Net sales decreased by 3% compared to the prior year, while organic sales increased by 9%.
GAAP loss from continuing operations was $(390) million, with an EPS of $(0.52).
Crop Protection net sales increased by 9%, driven by volume and price improvements.
Seed net sales decreased by 23% due to timing shifts in North America.
Corteva
Corteva
Corteva Revenue by Segment
Corteva Revenue by Geographic Location
Revenue by Segment
Seed Revenue
CapyFin.comCrop Protection Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comLatin America Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Corteva affirmed its previously provided guidance for the full year 2020. Corteva expects net sales growth of 1-2% for the year. Operating EBITDA is expected to be in the range of $1.9 billion to $2 billion and operating EPS range is expected to be between $1.25 and $1.45 per share.
Positive Outlook
- Net sales growth of 1-2% is expected
- Operating EBITDA1 is expected to be in the range of $1.9 billion to $2 billion
- Operating EPS1 range is expected to be between $1.25 and $1.45 per share
- Company expects to make solid progress on the authorized share repurchase program by the end of the year
- Company now expects to complete the repurchase program by the end of 2021, six months ahead of the initial timeline
Challenges Ahead
- Outlook does not contemplate any operational disruptions
- Outlook does not contemplate significant changes in customers’ demand or ability to pay
- Outlook does not contemplate further acceleration of currency impacts resulting from the COVID-19 pandemic
- Outlook does not contemplate political instability
- Corteva is not able to reconcile its forward-looking non-GAAP financial measures to its most comparable U.S. GAAP financial measures
Revenue & Expenses
Visualization of income flow from segment revenue to net income