Nov 12 (Reuters) - Corteva shares slid to their lowest in a year on Thursday after the US agrichemicals company slashed its annual profit forecast due to continued weakness in Brazilian markets.
The company expects full-year adjusted profit to be between 76 cents and 80 cents per share, compared with $3.60 to $3.80 forecast earlier.
• Shares of Corteva, which makes crop protection solutions such as herbicides and fungicides, tumbled 22.8% to $9.36, and were on track to post their steepest percentage loss on record
• Crop protection market conditions have become more challenging, particularly in Brazil, Corteva said
• Farmer liquidity constraints, higher financing costs, just-in-time purchasing and increased pricing pressure resulted in a significantly softer market in Brazil than previously anticipated, the company said
• Earlier this year, Corteva completed the separation of its seed and genetics business into a separate publicly traded company Vylor
• "Corteva stumbled out of the gate in its first standalone earnings report," Oppenheimer analyst Kristen Owen said
• Following the spinoff, "we expect Corteva's results to be more volatile due to the cyclicality of the crop protection market," Morningstar analyst Seth Goldstein said
• Corteva expects 2026 adjusted operating earnings before interest, taxes, depreciation and amortization in the range of $1.1 billion to $1.125 billion
• Analysts, on average, estimate EBITDA of $1.82 billion and adjusted profit of $1.63 per share for the year, according to data compiled by LSEG
(Reporting by Vallari Srivastava in Bengaluru; Editing by Shilpi Majumdar)