Corteva Raises Outlook Even as 2Q Sales Fall

Dow Jones07-31

Corteva reported lower second-quarter sales but raised its full-year profit outlook, citing improving farm economics.

The company reported second-quarter net income of $1.16 billion, or $1.73 a share, down from $1.31 billion, or $1.92 a share, the year prior.

Net sales fell to $6.38 billion from $6.46 billion. Wall Street expected $6.6 billion, according to FactSet. Crop protection net sales fell to $1.85 billion from $1.92 billion, driven by a 4% price decline and a 2% decrease in volume.

But the company said it expected demand to be supported by several industry dynamics for the rest of the year and it raised its full-year operating earnings guidance to $3.60 to $3.80 a share, up from its previous forecast of $3.45 to $3.70 a share.

"Seed demand continues to be supported by strong adoption of our differentiated technologies, while crop protection benefits from normalized channel inventories and improving industry fundamentals," the company said. "Stabilizing farm economics continue to support farmer investment in solutions that drive yield improvement and profitability."

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