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10-QPeriod: Q3 FY2019

Corteva, Inc. Quarterly Report for Q3 Ended Sep 30, 2019

Filed October 31, 2019For Securities:CTVA

Summary

Corteva, Inc. reported a net sales decline of 2% year-over-year for the third quarter of 2019, reaching $1.91 billion. This decrease was primarily driven by unfavorable currency movements and a slight decline in pricing, although volume saw a modest increase. The company reported a loss from continuing operations after income taxes of $527 million for the quarter, an improvement from the significant loss of $5,642 million in the prior year period. This improvement is largely attributed to a substantial reduction in goodwill impairment charges and lower operating expenses. For the first nine months of 2019, net sales decreased by 5% to $10.86 billion, also impacted by currency and volume, with a net loss from continuing operations after income taxes of $228 million, significantly better than the $5,705 million loss in the same period of 2018. The company is actively managing its cost structure, realizing cost synergies, and has initiated a $1 billion share repurchase program, demonstrating a focus on shareholder returns amidst ongoing integration and business realignments.

Financial Statements
Beta

Key Highlights

  • 1Net sales for the third quarter of 2019 were $1.91 billion, a 2% decrease compared to $1.95 billion in the prior year's quarter.
  • 2Loss from continuing operations after income taxes improved significantly to $527 million from $5,642 million in the prior year's third quarter.
  • 3For the first nine months of 2019, net sales were $10.86 billion, a 5% decrease from $11.47 billion in the prior year.
  • 4First nine months loss from continuing operations after income taxes improved to $228 million from $5,705 million in the prior year.
  • 5The company realized approximately $100 million in cost synergies during the third quarter of 2019.
  • 6Corteva repurchased $25 million of its stock in the third quarter as part of a $1 billion share repurchase program.
  • 7The company's Seed segment saw net sales increase by 24% to $681 million in Q3 2019 driven by volume, while the Crop Protection segment's net sales decreased by 12% to $1.23 billion due to volume declines.

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