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As a result of this assessment, we anticipate incurring restructuring charges on a quarterly basis through the second quarter of 2023 of approximately $400 million. Roughly half of the $400 million of restructuring will result in cash payments and the remaining $200 million is related to long-lived assets, the Russia withdrawal, and some inventory write-off.
restructuring charges
Transcript
2022 Q2
11 Aug 22
On costs, we incurred more than $500 million of market-driven cost headwinds in the half, driven by higher Seed commodity costs Crop Protection raw material costs as well as freight and logistics. The company achieved approximately $130 million in productivity savings in the half, which helped to partially offset this impact. Currency was a $200 million headwind, primarily by European currencies. The organization’s focus on meeting increased customer demand, while effectively managing cost headwinds through pricing, product mix and productivity resulted in nearly 130 basis points of margin improvement for the half.
mgn improvement despite 500 +200 cost headwinds
Transcript
2022 Q2
11 Aug 22
Pricing and productivity more than offset the higher costs incurred as well as an approximate $200 million currency headwind, driven predominantly by European currencies. This improvement translated into almost 130 basis points of margin expansion year-over-year.
pricing/cost cuts offset cost and fx
Transcript
2022 Q2
11 Aug 22
we are raising our previously provided guidance for the full year. Net sales are now expected to grow 11% and operating EBITDA, 17% at the midpoint over prior year
guidance hike
Transcript
2022 Q2
11 Aug 22
We expect record demand for grains and oilseeds in 2022, which we believe will support commodity prices for the next few years as demand continues to outpace supply, and we work to rebuild ending stocks. Farmer income levels remain at near record highs despite increased input costs for fuel and fertilizer.
ag conditions remain favorable
Transcript
2022 Q2
11 Aug 22
Earlier in the year, we announced that we moved from a matrix organization to a global business unit model to drive overall simplicity and speed of business while increasing accountability. Today, we are announcing actions associated with a comprehensive strategic portfolio review we recently completed. At the center of our strategic review, we focused on several key priorities, including developing and commercializing differentiated technologies, shaping a performance-driven organization and maximizing customer experience.
As a result of these reviews, we plan to exit nonstrategic geographies and product lines while redirecting resources closer to the customer in core markets.
restructung, away from matrix, reducing product lines and geographies
Transcript
2022 Q2
11 Aug 22
hrough the half, these actions, along with a mix of new technology products, helped to drive margin expansion of almost 130 basis points
margin expansion
Transcript
2022 Q2
11 Aug 22
This was led by products like Enlist herbicides, which has more than doubled in sales compared to the same period last year. The Enlist system continues to gain traction in the market given its superior performance and grower confidence. And we now estimate Enlist soybeans were planted on at least 45% of U.S. soybean acres in 2022. This is a remarkable feat considering this technology has only been in the market for three seasons.
enlist sles and share exceptional
Transcript
2022 Q2
11 Aug 22