Corteva Inc. fell the most in more than three years after the seed and pesticide behemoth posted disappointing results while warning that seed pricing growth will slow next year, according to a Bloomberg report.
The pricing forecast follows a 14% jump in third-quarter seed prices, which helped lift sales in the unit by 1.9%, to $878 million, even as volumes plunged 12%. Still, Corteva’s overall sales fell short of analysts’ estimates and its loss was wider than projected.
Corteva slashed its 2023 earnings outlook late last month as problems in its Brazil business, including later-than-usual farmer purchases, dented revenue. Sales in Brazil, the world’s biggest supplier of soybeans, have been hurt in part by tighter farmer margins and competition from generic pesticides.
The shares closed down 8.5% at $44.51 on Nov. 9 in New York trading for the worst daily performance since August 2020. The plunge brought the year-to-date loss to 24%.
The company plans to halt production of crop-protection products at its plant in Pittsburg, Calif., as well as some other undisclosed sites. Those measures will lead to as much as $460 million in charges through next year and about $100 million in savings by 2025, the Indianapolis-based company reported on Nov. 8.
Quarterly sales in Corteva’s crop protection business fell to about $1.7 billion, 11% lower than the same period a year earlier. Volumes dropped 16% amid the farm-buying delays and lower prices in North America and Latin America.