By Pooja Menon
(Reuters) -U.S. agrichemicals company Corteva raised its annual adjusted profit and sales forecast on Wednesday, following strong performance in the first half of the year, sending its shares 6% higher in extended trading.
Reuters had reported in May that U.S. farmers have hit very few snags with corn planting this spring, and the foreseeable future is barrier-free.
"While we continue to navigate a fluid macro environment, we are raising our full year guidance as a result of the strength
of our global business and the setup for our Latin American business in the second half," said CEO Chuck Magro.
The company expects full-year net sales to be in the range of $17.6 to $17.8 billion from $17.2 to $17.6 billion previously.
It now forecasts 2025 adjusted earnings to be between $3.00 and $3.20 per share, from a prior view of $2.70 to $2.95 per share.
"The improved crop protection results with higher volumes and profits show inventory destocking is behind Corteva. Going forward, we expect differentiated crop protection products will drive long-term profit growth in this business as well," said Morningstar analyst Seth Goldstein.
Corteva's net sales rose 5.6% to $6.46 billion during the second quarter, driven by higher sales in all its regions. Analysts, on average, estimated net sales of $6.27 billion, according to data compiled by LSEG.
Quarterly net sales at its seeds segment rose 4.8% to $4.54 billion, while that at its crop protection segment rose 7.7% to $1.92 billion.
On an adjusted basis, the Indianapolis-based company posted a profit of $2.20 per share for the three months ending June 30, beating analysts' estimates of $1.89 per share, according to data compiled by LSEG.
Corteva, among the largest crop-protection product makers in the United States, expects to repurchase about $1 billion of shares during 2025.
(Reporting by Pooja Menon in Bengaluru; Editing by Leroy Leo)
