Corteva faces significant risks from ongoing litigation, particularly PFAS-related lawsuits and the Lorsban® cases. Potential liabilities from these cases, along with environmental remediation costs, are substantial and uncertain. The company's reliance on third-party suppliers and customers, and fluctuating commodity prices, also pose risks. Currency fluctuations, especially in Latin America, negatively impact sales. The company's share buyback program and debt obligations also present financial risks.
Financial Upside
Corteva's Seed segment shows strong performance, outperforming the market and improving operational efficiency. The Crop Protection segment, despite competitive pricing, demonstrates resilience with gains in operating EBITDA from productivity and raw material deflation. The company anticipates net sales and operating EBITDA growth in 2024, with positive operating earnings per share. The company is returning significant capital to shareholders through dividends and share repurchases.
