MOSCOW (MRC) -- Corteva reports earnings of USD43 million for the seasonally weak fourth quarter, up from a loss of USD18 million in the year-ago quarter, on early seed sales in North America, reported Chemweek.
Adjusted earnings of USD0.04 cents per share were down 43% year-on-year (YOY) but beat the analysts’ consensus estimate for a loss of USD0.03/share, as reported by Zachs Investment Research. Net sales increased 7.5% YOY, to USD3.2 billion, as volumes increased 10% on adoption of new and differentiated crop protection products. Organic sales grew by double digits in North America, Latin America, and Asia Pacific. Early season sales in seed North America helped to offset currency impacts in Latin America.
“Our new and differentiated products contributed to solid top-line growth,” says Jim Collins, CEO. “We delivered progress in 2020 on key innovations and investments, such as the accelerated ramp-up of our Enlist™ system, which exceeded our initial expectations on US soybean acres in 2020. At the same time, we grew our position in key markets and regions during the year, and further strengthened our multi-channel, multi-brand strategy, including the launch of Brevant™ in the U.S. retail channel.”
Crop protection sales increased 13% YOY, to USD2.0 billion. Segment operating EBITDA was USD327 million, up from USD277 million in the fourth quarter of 2019. Favorable mix, volume gains and ongoing cost and productivity actions more than offset the negative impact of currency.
Seed sales were flat YOY, t USD1.2 billion. Volume increased 9%, but was offset by unfavorable currency impacts, particularly in Brazil. Segment operating EBITDA was a seasonal loss of USD47 million, compared to a loss of USD26 million in the fourth quarter of 2019.
Looking ahead, the company expects net sales of USD14.4-USD14.6 billion for full year 2021, which at the midpoint is 2% higher than 2020. Operating EBITDA is expected to be in the range of USD2.4 billion to USD2.5 billion, an increase of 15-20% compared 2020.
As MRC informed earlier, in late January 2020, DuPont de Nemours, Inc., Corteva, Inc. and The Chemours Company announced that they ha entered into a binding memorandum of understanding containing a settlement to resolve legal disputes originating from the 2015 spin-off of Chemours from E. I. du Pont de Nemours and Company (EID). Cmpanies aimed to establish a cost sharing arrangement and an escrow account to be used to support and manage potential future legacy per- and polyfluoroalkyl substances (PFAS) liabilities arising from events prior to 1 July 2015, the day the spin-off was completed.
We remind that DuPont is investing USD400 million in the production capacity of Tyvek nonwoven fabric made from high density polyethylene (HDPE) at its site in Luxembourg. A new building and a third work line at the production site will be constructed. The launch of new facilities is scheduled for 2021.
According to MRC's ScanPlast report, Russia's HDPE production totalled about 1,824,800 tonnes in 2020, up 90% year on year. ZapSibNeftekhim accounted for the main increase in the output,.
MRC