© Reuters. The brand and buying and selling data for Corteva Agriscience, a former division of DowDuPont, is displayed on a display screen on the New York Inventory Change (NYSE) in New York, U.S., June 3, 2019. REUTERS/Brendan McDermid/File Photograph
(Reuters) -Agricultural chemical and seed firm Corteva (NYSE:) beat Wall Avenue estimates for fourth-quarter revenue on Wednesday as larger costs in its seeds enterprise offset decrease volumes and introduced plans to repurchase practically $1 billion shares in 2024.
The Indianapolis-based firm additionally forecast larger internet gross sales in 2024, falling within the vary of $17.4 billion to $17.7 billion, banking on demand for grain, oilseeds and biofuels.
Although world crop costs have fallen from final yr, they remained elevated in comparison with historic averages, resulting in farmers harvesting extra to money in on elevated crop costs.
Corteva, spun off in 2019 after a merger of Dow Chemical and Dupont, reported internet gross sales of $17.23 billion in 2023, staying within the $17-$17.3 billion vary that the corporate had forecasted.
Internet gross sales had been at $3.71 billion for the quarter ended Dec. 31, in contrast with estimates of $3.62 billion, as per LSEG information.
Gross sales from seed enterprise had been $1.64 billion, down 0.6% resulting from decrease volumes, with farmers delaying purchases resulting from unfavorable climate in Brazil.
Nevertheless, this was offset by larger seed costs led by North American and European markets, and elevated corn acres in North America.
For the crop safety phase, Corteva’s reported internet gross sales had been practically 5% decrease on each falling volumes and costs particularly in Latin America, and channel stock destocking.
Brazil’s drought prompted farmers to delay fertilizer purchases for his or her corn-planting season, denting gross sales for world fertilizer suppliers together with Corteva, which needed to promote its Brazilian inventory at a reduction resulting from tepid demand.
In 2024, crop markets could face tighter provides resulting from adversarial El Nino-related climate results, export restrictions and better biofuel mandates, analysts stated.
Shares of Corteva had been down 0.8% after the market closed.
The working core revenue was 15 cents per share, in contrast with common analysts’ estimate of 6 cents.