EIDP Inc

The company operates in two reportable segments: Seed and Crop Protection.

Seed

The company’s Seed segment is a global leader in developing and supplying advanced germplasm and traits that produce optimum yield for farms around the world. The segment is a leader in many of the company’s key seed markets, including North America corn and soybeans, Europe corn and sunflower, as well as Brazil, India, South Africa and Argentina corn. The segment offers trait technologies that improve resistance to weather, disease, insects, herbicides used to control weeds and enhance food and nutritional characteristics, and digital solutions that assist farmer decision-making to help maximize yield and profitability.

Crop Protection

The Crop Protection segment serves the global agricultural input industry with products that protect against weeds, insects and other pests, and disease, and that improve overall crop health both above and below ground via nitrogen management and seed-applied technologies. The segment offers crop protection solutions and digital solutions that provide farmers the tools they need to improve productivity and profitability, and help keep fields free of weeds, insects and diseases. The segment is a leader in global herbicides, insecticides, nitrogen stabilizers, pasture and range management herbicides and biologicals.

Summarized below are comments on individual segment net sales and segment operating EBITDA for the three and nine months ended September 30, 2024 compared with the same period in 2023. The company defines segment operating EBITDA as earnings (loss) (i.e., income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, corporate expenses, non-operating benefits (costs), foreign exchange gains (losses), and net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting, excluding the impact of significant items. Non-operating benefits (costs) consists of non-operating pension and OPEB credits (costs), tax indemnification adjustments and environmental remediation and legal costs associated with legacy EIDP businesses and sites. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense. See Note 18 - Segment Information, to the interim Consolidated Financial Statements, for details related to significant pre-tax benefits (charges) excluded from segment operating EBITDA. All references to prices are based on local price unless otherwise specified.

A reconciliation of segment operating EBITDA to income (loss) from continuing operations after income taxes for the three and nine months ended September 30, 2024 and 2023 is included in Note 18 - Segment Information, to the interim Consolidated Financial Statements.

Seed

Seed net sales were $691 million in the third quarter of 2024, down 21 percent from $878 million in the third quarter of 2023. The sales decrease was driven by a 12 percent decrease in volume, a 5 percent decrease in price and a 4 percent unfavorable impact from currency.

The price decline was primarily related to end of season settlement in North America. Lower volumes were due primarily to reduced corn planted area in Argentina. Unfavorable currency impacts were led by the Brazilian Real.

Segment operating EBITDA was a loss of $320 million in the third quarter of 2024, down 132 percent from a loss of $138 million in the third quarter of 2023. Higher commodity and other cost of sales, lower volumes, price declines, and continued investment in R&D more than offset ongoing cost and productivity actions.

Seed net sales were $7,773 million in the first nine months of 2024, down 1 percent from $7,837 million in the first nine months of 2023. The sales decrease was driven by a 3 percent decline in volume, a 1 percent unfavorable portfolio impact and a 1 percent unfavorable currency impact, partially offset by a 4 percent increase in price.

The increase in price was driven by strong demand for top technology offerings and operational execution globally. Pricing actions more than offset currency impacts in EMEA. The decline in volume was driven primarily by reduced corn planted area in Argentina, as well as unfavorable weather and reduced planted area in EMEA. Unfavorable currency impacts were led by the Turkish Lira and the Brazilian Real.

Segment operating EBITDA was $2,126 million in the first nine months of 2024, up 8 percent from $1,972 million in the first nine months of 2023. Price execution and market share gains in North America, reduction of net royalty expense, and ongoing cost and productivity actions more than offset lower volumes, the unfavorable impact of currency, investment in R&D and higher commodity costs. Segment operating EBITDA margin improved by approximately 220 basis points versus the prior-year period.

Crop Protection

Crop Protection net sales were $1,635 million in the third quarter of 2024, down 4 percent from $1,712 million in the third quarter of 2023. The sales decline over the prior period was driven by a 10 percent decline in price and a 5 percent unfavorable impact from currency, partially offset by an 11 percent increase in volume.

The increase in volume was driven primarily by Latin America and North America on demand for new products, spinosyns, and biologicals, partially offset by residual destocking in EMEA. The price decline was primarily due to the competitive pricing environment in Latin America. Unfavorable currency impacts were led by the Brazilian Real.

Segment Operating EBITDA was $246 million in the third quarter of 2024, up 34 percent from $184 million in the third quarter of 2023. Raw material deflation, productivity savings and volume growth were partially offset by competitive pricing. Segment operating EBITDA margin improved by 430 basis points versus the prior-year period.

Crop Protection net sales were $5,157 million in the first nine months of 2024, down 9 percent from $5,682 million in the first nine months of 2023. The sales decrease was driven by a 5 percent decline in price, a 3 percent unfavorable impact from currency and a 2 percent decrease in volume. These declines were partially offset by a 1 percent favorable portfolio and other impact.

The decrease in volume was primarily due to residual destocking and unfavorable weather impacts in EMEA, as well as just-in-time purchasing behavior in North America, partially offset by volume growth in Latin America on demand for new products and spinosyns. The price decline was primarily due to market dynamics in Latin America. Unfavorable currency impacts were led by the Brazilian Real and the Turkish Lira. The portfolio impact was driven by the Stoller and Symborg acquisitions.

Segment Operating EBITDA was $811 million in the first nine months of 2024, down 27 percent from $1,107 million in the first nine months of 2023. Pricing pressure, lower volumes, and the unfavorable impact of currency more than offset productivity savings. Segment operating EBITDA margin declined by approximately 375 basis points versus the prior-year period.