Corteva third-quarter loss narrows on demand for agricultural merchandise By Reuters

By Ruhi Soni

(Reuters) -Agricultural chemical and seed firm Corteva (NYSE:) Inc on Thursday posted a smaller-than-expected third-quarter adjusted loss as farmers appeared to maximise yields at a time of low international grain provides.

Working loss was 12 cents per share within the July-September quarter, from 14 cents per share a yr earlier. Analysts on common had anticipated a lack of 23 cents per share.

Costs of important crops soared this yr and stoked meals inflation after exports from Ukraine, the “breadbasket of the Black Sea”, have been blocked since its invasion by Russia.

Corteva had in August raised its 2022 gross sales and earnings forecasts.

The corporate “expects document demand for grain and oilseeds in 2022” to assist continued excessive costs, it stated on Thursday.

On a GAAP foundation, nevertheless, it swung to an after-tax internet lack of $322 million within the reported quarter from a year-ago revenue of $36 million, damage partly by greater enter and freight prices in its seeds enterprise.

Corteva’s international opponents like Bayer AG (ETR:), BASF and Syngenta have not too long ago signaled hurdles resembling provide chain shortages, ballooning European power prices and a stronger U.S. greenback.

“Whereas the outlook for ag fundamentals is robust, macroeconomic pressures are anticipated to proceed, together with foreign money and inflation headwinds,” Corteva Chief Govt Officer Chuck Magro stated in a press release.

The Indianapolis-based agency laid out cost-cutting plans in September. In the course of the quarter, it divested smaller companies together with “straight-goods” glyphosate and Lannate pesticides.

Third-quarter internet gross sales rose 17% to $2.78 billion, additionally beating Wall Avenue expectations of $2.60 billion.

Working loss in its seeds unit was $224 million within the reported quarter from final yr’s lack of $217 million.

Working earnings in its crop safety enterprise, which sells chemical substances like fungicides, herbicides, and pesticides, jumped 71% to $352 million.

Shares gained 1.4% in prolonged buying and selling.