Corteva (CTVA) 7 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Ron, and I will be conference operator today. At this time, I would like to welcome everyone to the Corteva Agriscience Third Quarter 2024 Earnings Conference Call. [Operator Instructions].

I would now like to turn the call over to Kim Booth, Vice President of Investor Relations. ahead. go Please

welcome Call. and Third XXXX Quarter Good to Conference Earnings morning, Corteva's

Our by and be Executive will prepared today remarks led David Executive Officer. Officer; Johnson, Chuck Vice Financial President Chief and Chief Magro,

Tim Executive President, the King, Q&A Executive and will business Vice President, Business Crop Seed Additionally, Unit; Glenn, Robert session. unit, Protection join Vice

and to have presentation slides section this webcast. posted are which Investor prepared to Relations during link We on the of through website Corteva call, our supplement our the the remarks

During are forward-looking expectations risks this that statements, which about the various we will call, make current assumptions are future. based and to uncertainties. our These expectations subject statements are and on

not from statements filed on materially statements. actual discussed not these the limited this update could call Our duty and but SEC. forward-looking Factors the due undertake reports to, these our results any section of to in those risks differ do to We Risk with including, and uncertainties any

presentation, now references press release in non-GAAP with found turn Relations available earnings our note on Reconciliations slide to in summary call measures related Chuck. to It's can our be schedules, the to financial measures. financial today's website. our and along of Please my deck, non-GAAP pleasure be certain we'll supplemental the Investor making over

our an to largely from of had Kim. are on line we with and thanks everyone, $XXX results Despite deliver controllables continue loss for were fact this to and over million third quarter, Good we that quarter in well morning, for our Thanks, joining in track year. us. savings the execute Corteva's the the expectations. operating

growth technology, we're with delivered that just deflation along our demand Today, first business for by Protection XXXX. led Crop begun. at earnings a benefits have and providing look also margin The differentiated

to double-digit innovation in of controllable been in continues to largely expecting due growth, the to million and our is investment seasonality, smallest set are increased our leverage quarter seed What us to and execution over on return to our control. able driven the factors historically in strength portfolio, by what focus which continued deliver in still $XXX is apart has earnings were benefits. we We

up for set new we on Our regions the ability Seed our XXXX, North excellence RC and America an XXXX. continued new technologies royalty perspective, yield productivity. of productivity the in And for the also notable need when Argentina varieties our us out most as are to pipeline $XXX several a business basis, dynamics and provide crop our when as including approximately from to in protection to delivering hundred performance the hybrids. makes drove farmers increase This share and with benefits around strong overall world. gains farmers. well resilient operational hybrids in it business faced improve entirely and levers a control is acreage improvement the performance variables and million in not growth roll Pricing testament multiple ongoing gains From value year-to-date [indiscernible]. most. pull in will technology to including market Overall, the loss a is is business they with helping controllable

its CP controllables, months of $XXX substantial we remain the as XXX in happy countries. of see basis, meaningful consecutive We year. received the focus as year-to-date strategy registration margin in million a crop value gains a tranche approximately our and volume generating business EBITDA like to first which spanning we're active protection X on a over differentiated On on crop market. new XX through committed the first technologies, protection And approvals of second XX ingredients third our benefits in the the which in well almost premium of growth, of Seed, benefits drove the focusing to is quarter. On side, quarter warrant operating in improvement notable deflation

We're early market still the tighter seed note major demand markets margins. turned crop demand corner important except farmer track protection top-tier And remain the for food Brazil, in of in where every we managing to season. the levels. ag in remains on the seeing market terms Overall, and are record applications mixed. underlying has continue that while historical It's fuel. to technologies Farmers prioritize with

year. experience we that dynamics market continue into competitive to continue expect However, to and next

impact this through of to to are all Latin midpoint year the America the the conditions our full EBITDA does We to reflect results. remainder what of at full year? mean that operating So the year the updating our current market billion for range carry $X.X will

full However, year to area due is market assuming quarter to year for to the XX% in range as in full America, we've in margin. that billion share achieve EBITDA done including latest reduction It's this for positioned an well Brazil, planted still reflects Argentina's adjustment note $X $X.X committed flow in to we It in remain of are to something billion approximate for XX% say realities expectations approximately $X important fair we billion fourth as corn a year-over-year to our cash year that big Latin but repurchases. estimates also the is This free before. are [indiscernible]. the

for technologies but inputs. to critical demand biofuels. selection a insights We'll is is first about provide From XXXX. Today, continuation like to grain, oilseeds, when nondiscretionary seat yields. early guidance a look particularly Day. prioritize their to On-farm crop record other is expected demand of farmer A provide remain will and order to wanted how steady macro compared prior we'd February, perspective, we're at farmers and in to a Investor maximize top-tier anticipating and give we're to we meat also thinking in official continue to some

Latin in planted total to this year-over-year. like a much both farmers be expected assumptions, the is early In farmers now area for crop terms America flat Brazil, increase planted area U.S. to too in are since time, is nearly year of which, by too 'XX/'XX looking fields the corn and planting It next is right mid-single-digit soybeans. for say at XXXX in about

a recovery too early season Argentina for 'XX we crop current out. the it's the to year Finally, area until planted in in plays see corn how forecast

to season. in Our for planted a of except it's we're where, Brazil, in Brazil XXXX. geography an I dynamic situation it crop a protection all corn current increase view is given for normally industry daily, It's area markets is and that materially only is soybeans. the functionally said, world early flattish attractive market, remains the able but that monitoring the major are as the

combined to anticipating incremental The EBITDA strategic protection increase benefits with business including will moves from tilting double-digit in farmers rotation. and towards headwind, in we've levers, economic and technology investments differentiated growth. investment development plant corn currency in biologicals, Farmer an agronomic made, in to soybean controllable our incentivize continue and benefits Brazilian portfolio allow to When our operating crop significant grow we're and research sizable XXXX. a our

by are EBITDA line enterprise expectations plan, business our our remained So been and protection although expecting impacted to margins line goal bottom crop the high seed industry, to and XX% by level, top XX% on XXXX. have we achieve of our has largely

me looking is that, a David lot to to our the work turn Johnson review let to for it setup of have still And XXXX. over good financial but do, We with performance.

over running on to under hit the well leadership just David with months you. know, I'm our and Corteva has team on him ago, how him have business as really X and ground I'm the you As CFO. allowed very to happy and into our our which add to has impressed insights he David, operations. short himself organization, has immersed order in valuable joined

call. the to everyone, welcome, and Chuck, Thanks,

Slide start protection season seed Seeds. which Pricing sales down was up settlements with results pressure X, X% Briefly industry the the for and the touching ] quarter to and down prior the protection compared for and quarter, organic reflecting end crop on the XX%. Let's X% on year-to-date. financial down provides year, in in third America North and crop X% continued corn competitive [ of were

Feed Latin volume Argentina. North in America area of by quarter were driven compared up protection up reduced crop more . Volume to both primarily and were volumes up Protection prior the than X% quarter XX%, America. prior and XX%, were Third down year. spinosins volumes by led products year. corn was in Crop new over XX%

by X% to competitive destocking pricing X%, plant offset with Seed versus just-in-time lower up to prior America and compared with organic X% prior X% down portfolio. weather in were driven were Crop by by unfavorable driven X% North down were Protection driven and dynamics gains America. area across residual Asia. year-to-date, primarily were year by the down volume. organic flat Protection sales year EMEA volumes year-to-date. Seed in by X% down Asia, EMEA, Latin America Argentina, up pricing reduced and volumes and gains down were with driven Latin Sales market and Turning Crop volume pricing purchasing in with behavior. with year-to-date, in declines sales X%

of approximately billion compared EBITDA X% was Operating to compared to is year. prior Operating $X.X EBITDA down prior flat essentially margin XX%, year. year-to-date

net with performance. more headwinds summary than accruals. biological expectations Improvement cost while were bad Slide other the SG&A protection acquisitions R&D given headwinds volume were offset pressure, and offset the X% crop operating expected, the material pricing and full year-to-date from of costs year EBITDA of commodity Moving protection in on raw Seed track is on as normalized to to from and in crop for protection. X approximately sales higher expense year. modestly pricing royalties, full actions lower gains a higher debt seed line by for seed crop of in productivity costs. deflation ownership was both be and

the to market billion translates $X.XX the $XX The the at in at billion to down year. Brazil, the area year. let's Lower top $X.XX and year to crop Slide America updated The EBITDA expect growth We is now dynamics. billion, prior in impacting X% prior operating midpoint both updated X to in up full current dry and primarily and sales of due midpoint transition for guidance $XX.X the X% be lower-than-expected range updated planted net line that, go protection. guidance to the seed With an or and million compared of and reflects lower outlook year. versus range weather Argentina to Latin

operating of Operating and growth cost be and the Driven of volume in down XX half be points margin year. year, about Crop or prior improvement the expected midpoint X% basis of $X.XX to now of year by the the the and $X.XX the Protection at compared in half year. the higher second prior range is strength to performance in first than EBITDA seed EPS XX% about to expected or

cash billion XX% XX% to And our for flow or of guidance approximately we billion to XXXX. and reaffirming billion rate full midpoint, free the at $X.XX $X.X of flow cash are the to conversion finally, $X.X EBITDA year

transition for setup that, With the let's XXXX.

Slide but represents view of with February, and sales Chuck pricing billion $X.X said, net XXXX, low to that to of our assumptions technology. key a high and single-digit $XX.X demand by early X we'll formal drive As of for framework, advantage provide low along us billion guidance billion operating $X.X in could range end our we planning high-level yield EBITDA the $XX.X to seed expect billion. range In driven of

biggest America seed One and variables North midpoint, versus the area, corn a of assuming America. Latin in in planted both flat in we're the planted is area. At split relatively the soybeans

crop demand is to Another expecting flat crop in dynamics. XXXX. mostly be the [indiscernible] the we're industry we key relatively how see stable, remains current protection much variable growth in market given protection

remain while products, expected prices including biologicals, growth, pressure. volume differentiated under much to of to are and New are expected drive the

XXXX, to seed more benefits. deflation coupled crop some benefit with In expect XXXX, productivity from material improvements raw see we crop with we to In both cost in and protection, protection. in deflation started see

consistent gives percentage relatively in assumptions for levels. protection. both to grow of sales a a seed crop to SG&A set us Our and be the in include and Together, our margin with assumptions, earnings R&D which balanced confidence it's and of as ability XXXX XXXX

Turning XX. to Slide

be flat offset company to You low in approximately up in expected can EBITDA to bridge declines pricing be $X.X with for from protection. in XXXX. at billion operating crop by the to $X.X seed pricing midpoint Total modestly single-digit billion for see XXXX to XXXX the

seed expecting growth and are crop protection. in We both volume

volume Our protection to to low be products driven biologicals. by demand for is mid-single expected up new digits, and

journey XXXX to will step be our in neutrality. another royalty important

to $XX we income EX We in and improvement soybeans royalty corn out-licensing licensing in continue [ expense, Conkesta the power approximately corn almost ]. up entirely less increased net expect million as of by ramp driven

in benefits improvements crop expect commodity We lower approximately material by protection million cost of seed raw $XXX deflation, XXXX from protection productivity and footprint actions, driven crop optimization. costs, including

to increase flat more relatively at points growth the translates the of Together, Brazilian to real. a be and spend. operating SG&A basis in levels, EBITDA midpoint sales modest as implying lira by R&D are expansion. a of this primarily driven with Currency expected XXXX XX% than XXX is percentage and margin Turkish headwind and

of it that, in XX is improvements the review to Slide XXXX. the With key drivers cost

several weather-related costs, productivity the including For experienced seed and significant right driven yields labor, lower commodity inflation past business, prices, we've higher by the years, on production inflation in higher [ warehouses. and ]

to are driven commodity from largely see lower While reverse, America we start in not the all costs benefit XXXX to expected by and Latin America. these costs North will

We expect continuation commodity current to XXXX [indiscernible] see through a given prices.

of comparison crop single-digit rate protection of weighted on deflation visibility raw the first is our of We roughly the towards inventory based crop expect another expected half and materials. of to the hand. in year protection low given on months XXXX year-over-year This X be

are inflation offset costs of as the technology from related approximately protection productivity footprint as seed include benefits translate These Together, will transition which seed million, higher and trade by protection costs. $XXX expected deliver optimization. in crop the and crop a North Both the to production savings, to partially be benefit production to America. including labor these seeds well to higher freight costs

to reminder in $X.X and the and Moving and year $X on takeaways. cash turn current free share now Investor seed Kim of you detail that, to billion protection, to a the margin on guidance our give Driven includes full and on year EBITDA XXXX, to sales, we'll for dynamics With by remain over operating updating deliver outlook preliminary flow for at growth which complete upcoming $X.X EBITDA the both billion we're upcoming forward expect mostly to look growth, XXXX. repurchases me provide the key of We and XX billion Day We midpoint. with XXXX. America outlook to be about summarize crop the for the where in track billion market $X.X more from Day. Slide and let full a we to Latin XXXX it Investor

David. Thanks,

we'll webcast showcase framework that team, management through our a the members various It followed person. know, our New those that discussion will you November City. next ag operational X.X-hour in Investor in of XX will with most be innovation by event Topics various include As holding of on for Day York executive include the XXXX drive additional our leading out well of in to create industry, our and will tech decade. as platforms excellence will position the creation as financial technology value an growth

website, registered, contact already Relations be our please can haven't to you information If found on directly. free Investor me feel or

we Now a before few to get Chuck, like believe I make remarks. closing into you'd Q&A,

New Yes. weeks. look Thanks, in of you a York seeing We to in many couple of forward Kim.

Corteva. new announcements exciting long-term several have trajectory regarding mid- of the We and growth

first will [indiscernible] role words President Tim Vice succeed I'd veteran Corteva is and recently in is position retirement companies, XX-year of our Jed Paulo. President Earlier out North in serving most Sao new December that beginning about his Finally, Executive a to ago adviser a a quarter. few like of American few made the until also will as served O'Connor transition of DuPont's on after strategic our we say Jed into X. his business a this career, announcement as based who [indiscernible] Regional Seed will President a have America weeks assuming for we Latin the business. Glenn, the

and our join I'm team. our Few pleased better of to course, is and people know bittersweet. This, than management him customers business certainly [indiscernible], have

few any Tim people institution and know However, Corteva, farming agriculture, better. is such industry in are at company a an as there our that anywhere

all back to certainly over And now best the I'll wish well-earned will it him his in Kim. We hand retirement. but him, miss

Chuck. Thanks,

cautions non-GAAP questions. on Q&A. provide like remarks let's would following Now forward-looking statements that and to prepared to remind our apply I our you move on both your Operator, and measures Q&A instructions. the to please the to

comes Instructions] first Andrews question [Operator Stanley. line Your the with from Vincent of Morgan

and costs, each maybe interested and in particularly I the other $XXX you about of were. much to sense done, you've a million bit mentioned you Could buckets break think XX of a with Could obviously little I transition those substantial of give it us enormous seed at I'm I assume on are Slide extend inflation down ask costs. trade transitions which as and was [indiscernible], remember to were but which other trade back very extend to don't costs. then us transition. associated it I Enlist, whether talking how

more So insight into bucket? if I'm wondering just bit $XXX total little us million give could a that you

Yes.

meet XX% to you of the is of that XX% of Nice in Vincent. most then inflation be And that it David, There's about is number total, to the bucket. would trade. the would X/X When look this that that, I about Seed at say, you. of So is business. the in

imagine, non we're can when you element, is significant commodity there look As but commodity seed of there's some the where related. a or our seeing a COGS the Seed business, for pretty you inflation. that's And at that's element COGS

them. Vince, the and costs little trade as transition we a define bit on I'll touch

So X North you on [indiscernible] into America heritage traits PowerCore the trade One as aboveground is right and see transitions and Lyft we've identified, major other from some from got of ]. corn in going [ is now. our

to bringing just the something Part it trade next costs, And of in over deal years. new be couple so ramping of those is they're those up with the we lines. technologies and with going transition

field. terms have of field. The of call that other the use were, transition it, and sterility not have level the to we the is, in driving we're here, the technologies of of going productivity are we of sterility a part other we primarily lot pace the mature as because produce in that in them, And of

those AcreMax the until technologies. doing as Chrome this It's at incurring steady for a with incur about period we're some been several associated that. just of to back have like and and the during casting we the some to state things, have kind we the of going we're costs size costs with transitions so And we go to last have operating years -- and to

So years technologies. move towards, I'd it's we'll fade and next really say, steady we the of over with state something will couple away as deal those a that with

Our BMO of the comes next with Joel Jackson Markets. from Capital question line

year, how look seem benefit million seem guidance, CPC versus Is talk Can guidance a you deflation does it sure the more thought for look next I you number have here about can what first seed is base year you're this your and upside? at what lot initially this cost possible. what that your next about your -- we talk modeling hundred for you does couple cost Or is a deflation, have for bit point case? little When a you that? at it Can low there 'XX? this can to Is at dollar get?

Yes.

I'll maybe specifics. give then you start So and bit David a more can

look you're XXXX, at our we're decade technology wanted talk going So a to some strongly because 'XX in through ] Day early simply couple that [ into of framework opportunities right. believe XXXX first end and in even of the a the to beyond We years we having next. of and give we're the Investor about where the

for a give early So a XXXX, there are reasons view little of to it. is this but Corteva for

that? gross And in David, that. me normal is number is management, on part basis, under release takeaways for as Obviously, half guide our beginning there's we'll it's really give and million deflation And of of quarter. $XXX is deflation. by feeling like February the it good a about large a large 'XX cost we our so say, part And the on driven this, control, a of very I'd of fourth and productivity official the we're about

Correct.

in and It's about clear as to talk don't manage I X-year way then benefits the deflationary we And be we've going we for to we of hedge journey that because we cost. And XXXX us. going and a seed deflation seed XXXX. in be can think forget when in as that 'XX, there's be been

getting we're just started. So

but seeing excited right we're higher now, deflation we're still seeing fact, we're In CP, which in in seed the about. costs finally COGS pretty

just million there covered. $XXX start you which some gross, about that offsets, are thinking when actually, So David

long-term put expansion really buyer technology Tim a strategically to a now what for described, all being margin we seller, together, a strong You used double-digit as EBITDA be growth, that's from lineup. it exciting And technology journey that's the Corteva is the just shifting portfolio really company. now to

in I Now overly articulated well, and to early the for it's say order if we -- have not. achieve to us that. framework to it's as But bear some think, too really or costs conservative

today add, is be the our we view calling Anything best flat perspective. to don't David? Our is essentially are year-over-year. basically CP for forget, to market this And

No, that's good. basically think I

of As Chuck number be productivity. would said, that about half the

The [indiscernible]. be would of other half the cost

from McCarthy comes the question Vertical with next Kevin Research. line of Your

McCarthy. earnings And is deferred associated to Hatter what's for on Kevin the from sales deferral? much Matt This from seed XQ? impact that How XQ were on

So in you're sales, primarily terms Latin on third quarter I assume seed America. of talking

[indiscernible] be is and to following that might fourth of say fourth it of Argentinian bit So normally, -- we'd then be summer is and first think going Safrinha we would a to quarter the would into about little summer bulk will third sales I'd then in. going have the third generally spread go the and have quarter the the catch quarter. year into of -- quarter fourth then in place generally and be the exclusively quarter. quarter And would take would Brazil, then

about place, and actually, seed is reduction share margins. XX% that the that's as impact is a that year, above-average talked about a gone we the we a when market. that think from taking do actually it's real. this That's reduction. when about reduction seed an business that at away. call. highlight market about to what talk in largest isn't approaching you in a XX% Argentina every third our I look don't the think our deferred. So area Argentina We business And we of we And is market the standpoint, on market probably have significant profitable it's area That's quite market. very want world It's the

talked That's of doesn't year. about back. the we've overall that that reduction part terms of business in So come the really

a of think that So don't I as deferral.

from there. Again, looking the area substantial little represents summer And about of or And standpoint corn a maybe of XX% total reduction business, area little even in Brazil, year. Brazil or XX% that's in reduction the we're summer picture, another related. bit bit at we're less and big even than off reduction looking year area, again, last this at a coming that's not a probably a of greater timing

So a reduction and of standpoint from a talked issue an Safrinha Brazil terms quarter. from America. volume timing we've part the no fourth and that area overall that's about standpoint, essentially summer, From Argentina in in place that of of won't is take seed what Latin

Yes. And thoughts business, overall I a on other if maybe just can. seed couple the of

performance, I when at the extremely year-to-date So look we're pleased.

think seed soybeans We're having in is corn business and America. market year. I another North seeing strong in gains extremely the

And our like basis around up think believe approaching points. the XXX is EBITDA the are our I leading we have world. X%. up technologies something about I margins And

a pay I made to think years pivot that strategic few we've a business is really ago the off. this So is starting

Tim did temporary do lower As third quarter from drivers major overall the comes it full one Cornstone seed is And I issue out, we Argentina when called rightly is believe slow an of the our a very We item. year think the that a to guide. perspective, sales. that quarter is

the is population XX%. it We're when something there's that like good comes down now that and issue, [indiscernible]. the Argentina external hearing reports fact, some news insect that to some carries In

but through do But So behind full that year. have we're will will worst the will we be this us, tell. hoping time will the carry that impact

line Next from David question of Begleiter, comes Deutsche Bank. the

royalties neutrality? do royalty your Chuck, on to next on are royalties seed year, Why you is stand they And down. where journey -- that?

you we're feeling really royalty a David. But and about give give then can Yes. Maybe I'll to details, Tim good neutrality. perspective journey our the

million little this We're the maybe been a a And recall, sort I you what tracking our you to we're indicators the If the of if years on say about of is fundamental bit And shift year, ahead been on still . focus. in in we've ahead maybe able this by neutral decade. the one of of couple deliver year. would run think quite XXXX, $XXX deliver X technology years, year, about rate we're last to royalty track. leading we've a that. ahead the of of end a probably

why state of that view year, So the view, preliminary reasons than that that. that's slightly right one preliminary the a less now again, is next and it think just I we're I'll is

the you we're we're comfortable in even on look what important doing average in combined soybeans isn't thing maybe, to of with terms in that 'XX news if and at you But the about about good Power now Enlist the with So 'XX, a some quite Core, And talk Tim, there's technology that? that to million. necessarily of it's we're want Brazil. real $XXX take numbers, minute

has been of soybeans of Yes. royalties in our transitioned year. position mean over fact a because more of transition talked talked we I our definitely, North America rapid being to Enlist about we the EX. about that years, a lot royalty 'XX adoption and had we're made largely the the last improvement We few

actually is So it's the royalty year when greater royalty reduction. income than

good say dynamics Chuck we're different. and that's overdelivering we're this -- a so the little year, a And little bit bit thing. said, And as a are

take get to You . year. we're once, and only of it to year this count next going at instead

been many and market And performance But As we and America. subtle to than technology soybean standpoint and reduce about tested different will outstanding now America be for has news go big we're corn from being platforms. think be good. more in a what North the products is the here, companies companies still about where opportunities being seed North seen demand the royalty say, going commercialized, the with we in from transition on to is independent collections. I'd List, those in And by [indiscernible] and as we seed transition be, interest we've royalties and will there us

sell don't is we offering challenge we portfolio the aboveground where technology. have Our full a

there, Enlist and Argentina opportunity Our meaningful step milestone. and one, our we've on it's that's well. that [indiscernible] next-generation another ground got that's Conkesta But benefit And the some Obviously, the over a improve there. as and EX. Brazil, and in will then to have out XXX EX, other forward and position below Brazil license licensees that will really with

call able make for though penetration over we're going market continue accelerate in more to kind well there. plus that internal that, now, licensing still next more to varieties making expected competitive hits to great in the varieties marketplace its single-digit in beginning to as progress. continue the 'XX, we're it, EX market where And We own breeding there's in Conkesta be our varieties to progress year. as Adoption going of the at point contribute XXXX, with come is especially. even very And standpoint, right program and we're into

Torrento breeding the this variety marketplace. growers, sold sales, it X units And I'd do widely still we stages multipliers. [indiscernible] Conkesta we million key of partners called of it's And low that in EX blockbuster in kind past of and varieties produced first say by over again, the that have, by by planted early year. which X the X our million X developed and variety -- there Brazil, unit milestone blockbuster but one It's relatively have crossed we I of CE, a as was and many with in penetration, crossed measure we're varieties think

is for as got to the going We're marketplace. accelerate. opens market that We've the step. a small And in game, But it's it and of a part continue shows forward. in to up the long us certainly, go. get we fit we've big is to what we to as way go So decade, this the got latter to

part royalty collection exciting less about really more going forward, So royalty future. as the reduction, about

from with the Research. The Christopher line Parkinson next Wolfe comes question of

in lot XX to are trying Just opinion, But parts, just terms think of in safe along factors your to it's price. EBIT of at the circling acreage lot to the kind in percent in deductions, there's of prospect CPC currency, specifically moving some say, and a of there and with the of Obviously, least the just of and my sales, R&D to a I positives. lower to as outlook. back those terms the Slide a isolate SG&A U.S. referring of upside

that the kind to FX a let's other $XXX the of and be extending community feel plethora Are sitting today back XXXX. what that any play the there itself is good be of of just should pricing stagnant positives, should factoring million? in? in CPC the, we here As confident going offsets much of you that of to out? are that really Or Are risks to the half sit are actually the we terms there upside see how marking of seen X that, is scenario buy-side say, second confident in at more market we've the that half just into do we kind to and about

currency this is question, David. Maybe to I'll regarding on the Chris, maybe other the then elements. take it we'll pass Chuck

is as of If now, the far as in in And currently. the base south kind most trading that just Brazil. Xs upper was the know, of as you our where currency of at is look somewhere at X.X%. right you we're This Real year,

year, the I further not. if So over or X% it's of time. An not hard period somewhere will average whether around or think it's to that long you look fight predict really

I So be. impact feel a this say of we've we it think never I will we estimate I have reasonable with valuation, number. give really the if never comfortable what goes but think further think

couple of just Chris, take Why just a Maybe, the don't we thoughts. bookends. Yes.

we that conservative our And take notice would that because wider agree assumptions. earlier. if to provide. end, The So providing a it current is side. certainly the the you that we only that different we're to . you'll time X% have would the X.X% perhaps low We But will than probably is than X.X%, on normally lot the tell. be did

the as significant we to to right? good said, miss productivity on for to reality additional CP would would as to headwinds, is deliverables, we that we and become market Most very we have continued cost probably have track and X.X% of a need know, again. some likely providing you happen, our would our weakness we which what a record Day, and of first Investor look, have face we're believe, because pretty 'XX Now some

Let's other take the $X end, billion.

controllables, in to to little said, overly a we'd have now, market. probably that get I CP little certainly of XXXX. achievable. it bit when right for wouldn't Is just think range. strength to history out which early overachieve have that we're we it's a to bullish the It We see our have up of finish billion on quarter and take -- doing. But our also a hit need to Absolutely. us it $X possible? very trying a table wider But the I there the in sitting think the in billion. or put would What As happen to us on $X is is deliverables, would we on fourth

a for draw thing my think XXXX, as journey on expansion, for earnings for first and to been important growth is, look of years. the X double-digit to I that margin their is a callout folks attention a we've continuation

question Your Spector of comes from Joshua UBS. next with the line

Josh. for on [indiscernible] is This

Just on Cropchem wanted expectations side. the your clarify to there

XXXX, for are sort you stabilizing risk pricing on then ongoing that of So noted side. and the volumes

single baked low seems Is imply growth grow walk sales pricing of sort what's and can of volume you that to mid-single-digit single there? kind us guide by digits Your down in digits. correct would low offset of through sort overall? Or

Yes.

So let you. to here me try for highlights the hit

of actually is CP. there's most I now to what when think, one North and when It was are quarter, not really that, right operating the about this yet, it Brazil about is when and in saw positive say operating markets Europe America but We're the took dry. I in step I And still, towards third third we're you right? strength. combination we of CP seeing I'd that the think industry. APAC market, of we the stabilization unstable think comes a reasons, I And some normally. quarter. think another of you out step back the woods like -- full think,

well-supplied behavior impact. cautious in and weather a was market. It there is So this there's a still market, farming

that put optimistic cautiously reach together, think you industry we're stability. when all starting to I is So that CP some the

our about talk let's business. Now

over And We couple quarter, I'd than business year, which consecutive for quarter. our in growth time feel volume really growth good performed our say, pretty third been We business. a last question. In the the CP will is quarter the the XX% for we for growth, has saw second say your a have saw that. Nobody EBITDA well. tough then the different that EBITDA quite our anything of in So first industry. to years had CP of business

that of in is deflation. that our lot what's our technology. A some control And and new of is

So and a assumption the, say, the volume then, really technology. for driven is mid-single XXXX I'd driven if we'll growth just And will better by, is look in our new think, do to industry, by that. flattish get than it's digits, specific be I it our now

it And several are have But the probably certainly We ramping at our than that yet think XXXX. in still new that see AIs is better I up, made. biological that grow the CP but It's you'll healthier market has been. investments overall we've business healthy. than

question line Frank next the from comes of with Your Research. Mitsch Fermium

question price outlier. end-of-season American seed seems provide That on -- wondering XX. that? seems like an any XX% a Slide North if was Just I on down color reflects more settlements. was It could year-over-year. like you

half in Tim. is first very first buffer in limited the Frank, things. America largely of kind to these year. quarter. North business that have of shot just business huge And There's a we a trickle into at a business obviously, our of of amount don't third amount take that half this is of can I'll some sometimes that. the And the

replants. talk talking what is So here about about in the issues, we when we're settlement case of

equation. terms We normal And replants, have every hit for of trade have, part sometimes we factored It's we the less. And part a so accrue our of year, for hit policy farmers. business. replants they early, service and sometimes of are they the we into

actually, the replants little we've amount had, we're it's a have the they Sometimes more. very of This from normal range. in -- bit year, much

later. it, hit just planned So for we had a little bit

the up the third second showed it quarter. than rather quarter so in And

So this year. it's quite visible

if of the ended they about later ago, is, that we Northwest just with Southern in particularly progress we season early Iowa, and a in versus some a you planning bit a were replants northern settlement corn belt the in terms the year that elevated the standpoint. why up of floods little And of bit little think the Minnesota, and had,

kind obviously, there up a not it's it. that shows a -- price there's takes as place lot And So buffers of that of volume concession. not

normal so it's And doesn't just itself in part of it it here. looks did business. by visible there. It's the actually quarter It as quite And unusual. a oftentimes hit a

little So issue that's kind of on is. background the what a

of comes Byrne Steve Bank The with the from of next question line America.

Steve. This for is [indiscernible] filling in

deteriorating everybody regain think Brazil, your chemicals a about regain to little the was can talk where check is a bit XX% competitors rapidly? their about I that same of by environment imports to Is I for later it So the it talking you're one so they was little already the and price trying the time, trying share? on if at you actually lowering threat price, want and Is to pricing and crop of share the in And that done. especially were and down game has generics? in and it bit why --

have So the think Will cut to, price? Or now? do to doing are guess, that's competitors And like are the you what it actually. price one doesn't last they case seem you respond declines? your to I your

I'll Crop on Specific We XX% little me the But quarter and let to down in Brazil we're Robert. you digits. if look price, this. bit Protection. the touch start is the a finished mid-single This up on year-to-date, with at price.

third for going things quarter so Brazil quarter some pricing quarter the expect to quarter, X -- ready be down or the We over on relatively of the to the things. quarter finish for quarter. sequential company. But to was And don't year a on going we're different for will up digits the flat. that working get back season mid-single is about a with period XX% the us. for Lots was and channel different

a And we're down looking Really, of when competition a lot a find in to on trying year, of flat volume to flat there's lot growth. for coming you market. competition Brazil. why, in areas, think this And about all going market or at a from

will work on makes doesn't products to we're on us, And really play. going that sense for on have seen into majority of our things they're of our to and value That's Brazil. share. competition the continue philosophy. drive typically so We're back the the happening or going selling we our for hold in biologicals to QX I'm have that that to well But their you do We new comes do premium our and need going the our grow that these to continue as trying comment differentiated add farm. and they not are growth future, we in business, things to our going do to on the value to a products for that And what does products. around our products. because as or

XX% You'll business Brazil. our is of biological over in recall that overall well

out happen, a good well. And still down as to expect we and quarter so there biologicals of season that is

for in So mid-single year, now. is the for which where overall up right the we're finish we'll price down about the digits short answer business is trending for

our quarter, other When book CP book. like to we're add. one fourth biologicals book position. certainly the for Maybe, over XX% you Robert, our -- at order XX%, We're XX% north we for look our for thing our of

be fourth to And that's we're So where all factored think setting I quarter. want exactly our up we the thinking. current into for

comes Citi. question from Patrick of with next Cunningham the The line

biologicals you what on sensitivity help have expect how in XXXX? should could the number last performed protection? what do expecting and you be quantify that And year-to-date? similar around broader the And new comments, contribution to based for Just for you're products crop

start us. serving biologicals. the into we're with acquisition, to the very and unique is a serving driving -- that continues the I'll solutions is to our on perform complement Patrick, business offer to business, portfolio to and this very well. Robert. XX as the that's good to We're this farmer synthetics months able farm it's It's

So we like playing it's how out.

be the to From biologicals we're EBITDA for double up for growth an expecting the overall year. digits XXXX,

give XX% And products, in a you when strength. about new products. that continue saw growth or organic QX, to into new to going volume we lay that's so And us

to And so these to products be above continue -- market. perform

continuing the growth digits out value get that. to of and expect We for mid-single we're year, about

as up So we're out with finish going both to of these finish year the strong we QX.

we're engines then strong you at course, through to we'll think about Day, the but Because the CP believe to more the, business, And if and the strategy, part Investor really we've XXXX are got you and market. think, channels of portfolio, I of growth commodity trying technology. right? share, to have think the of our sell when We differentiated the these beyond, deemphasize

franchise And a have beyond. with lead, They'll into so called They out, less differentiated a think, have they're as but have premium, I the trade will on volume the from even our these Robert technology. premium year terms And in that of a market. will the demand perspective to they'll and had on 'XX this or we -- volume. will immune far, not so ] market, the growth and we've [ Spinosyns on carry new very good our products biologicals, always

Next Edlain question from Rodriguez line comes of with the Mizuho.

-- question on on Just initial XXXX. a quick again, guidance the in outcome view for

of and that when And for you've high way that get think you much very is I is confidence is You've to related course, low Ag for that to guidance how you should the this guidance of to your gave what forecast. have do asking all and the lowered gives time, it's due sense the question like we with a third talked skew end pendulum swinging. fair end. the But be the year also XXXX? challenging be and respect, people think The for between better about will again, could confidence in you is you XXXX, for which

view hit certainly flattish. right? out today, XX%. at return is right, that you reason I the that thought margins to need that year, the going that would for updated so the to that if earlier that had fundamental on And in for had think we XXXX. point, the our it's year XXXX view industry And now had was we XX% the industry to in something a us said we range changed, mid for had framework we the update Absolutely. for at grow our did we came industry we've would be in with always And And decline. be like Fair and question. because the that 'XX [indiscernible] believe that XXXX, point a to Yes. this We see this, about with CP to CP numbers

fundamental that's So change. the

seed at look you a and plan. it's it's cost little entirely comes actually ahead business, it are fact, And almost to ahead, probably if bit in we So productivity. the trending on also when

company, I done about The So is of plan. think lot we've business when as got we've seed a right. things a on how

industry, profound had CP I a clearly our cost and and outlook. think the are, in us else has productivity and controllables impact but against on and our industry everybody our that's the moved

XXXX journey. in a still So our The And very to feeling more and will America. to of comfortable view flat business to I founded we're the to ground $XXX comes comfortable is this with. harvest about Let's get the cost when a and think know? But it we're that year. getting finding to finally. is We've your in million good productivity [indiscernible] as gross very, when Latin question, feeling CP. CP through crop that we seed some a its the I mentioned, put continue And is deflation, very going got on we're industry crop how stability

value. have is what view create ask. good levers and give you So more. very fair And learn update we All that flat, is if the CP you this an about somewhere it be our to and X%. though between is organization And can is, industry, current I the think, very question we're thinking X.X% we're pull it's do the to as to will the as a feeling to we that we

of the with from Yefremov The next question KeyBanc. line Aleksey comes

you did meaningful return 'XX, [indiscernible]is? do on for What assume Argentina you assume planting any

that. I'll at is shot this Alex, a take Tim.

out the hard deal it's that to . the to And if it's to into. to whether from roughly say, going million down a pressure X.X to prudent for something hoppers is this a with increase million significant return. So that not taking so it's let's we're a is, point, leaf of X taking or 'XX farmers for hectares was environment And at from predict a XX%, last or why forward. year, going very, call we're And assuming and it we're approach because deal hectares. really plant X-year difficult a that have

Chuck right direction. populations right are share that in now, so And the the moving

to but So a got track course positive the you season. we build really the into got thing, that Last frame. the February January, we obviously of as that's time over year, populations saw

planning understand a and we'll is in big [indiscernible] is soybeans. to speculative of at corn corn is a And going it. really so but because and basis, or time. kind be Argentina end need on that that important it's rebound. assume really Argentina agronomic beans It'd important. for to you we between And some X problems. continue exporters to area some do we line going that an to production do is Hard and to for corn, before important defensive up rotation an X year very standpoint, They're crop do years. that that. corn X-year X a be northern this as farmers from can't in with point remain Bottom the to going of be X both this major area of

few staying next we're opportunity be we're essentially understand for that over to 'XX, optimistic And going we're flat the So market again and to certainly, years. assuming close what with a is. 'XX

of The Viswanathan comes next . the from Arun line with question RBC

the on balance real I'll just sheet. ask quickly

I maybe views debt. taking thoughts If give you play you guys bit updated us of rates but would a that little there? on can just would interest some consider your know on maybe into that, obviously,

our today, consistent. here views been sit we as have think I

'XX you I not 'XX meaningful forward, the the the and dividends at and cash business back that amount don't put look 'XX see certainly we giving to versus outlook. in change the the of buybacks. going think amount generate, back when any that in We in outlook, we not in

Yes. thoughts. maybe just couple And other of Arun, a

the $X.X billion. of cash So feeling good billion terms in about guide to $X free flow,

conversion do cash the company asset balance is from generating, we very I the sheet, and rating. improving We EBITDA. is our So recognize good investment-grade in strategic think, a have

really changed. I think David just hasn't philosophy shared our

think dividends. we're If going this $X.X shareholders billion approximately be you capital and of to through to even year, returning buybacks through

we've share got, big both got we'd So in able inside seed growth with business. to And portfolio. things Investor to things we've the of to We lot and for I few that the like a CP happening think, number. you invest And other the be Day. a that's at great want a

of to So things it the that we'll have, position rest one and of I is But apart. sets the the a good conversation. is it hold think Corteva

now turn to back session. over Q&A closing I our will Kim Booth concludes the remarks. That for conference

have joining today's wonderful concludes That you hope thank call. for Corteva. Great. in and we for and your safe you We interest a And day.

call. that and for you gentlemen, Ladies today's joining. all concludes Thank

You may now disconnect.