Reuters — Seeds and pesticides company Corteva on Tuesday announced plans to exit about 35 countries and lay off roughly five per cent of its global workforce as part of the company’s cost-cutting plans.
A surge in inflation this year to four-decade highs has forced Corporate America to slash planned spending and roll out measures to shield their margins from rising raw material costs.
“We don’t think that (inflation) is abating,” chief financial officer Dave Anderson said at Corteva’s annual investor meeting.
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Cost pressure will ease in 2023 from levels seen this year, but it will still be significant, he added.
Corteva plans to reduce focus to about 110 markets, honing in on 20 core countries including the U.S., Canada, Brazil, India and Western Europe. The non-core regions make up less than five per cent of the company’s annual revenue, Anderson said.
Last month, it forecast run-rate savings of more than $200 million by 2025 from its strategic plans, and charges of about $400 million through the second quarter of 2023 (all figures US$).
Indianapolis-based Corteva expects net sales of $19.5 billion to $20.5 billion in 2025, it said on Tuesday, adding that it plans to invest about eight per cent of that in research and development by then.
The agricultural commodities company forecast 2025 operating EPS between $3.70 and $4.35.
Its board also authorized a new $2 billion share buyback program, in addition to its ongoing $1.5 billion program announced in August last year.
— Reporting for Reuters by Ruhi Soni and Ankit Kumar in Bangalore.
