The Wilmington, Delaware-based agriculture enterprise, which separated from the chemical big practically a 12 months in the past, noticed its pesticides plant in Midland, Michigan shut down due to a flood brought on by the collapse of two close by dams.
The firm is taking the time to assess the affect of what is being known as a “500-year flood” on its services, CEO Jim Collins informed CNBC’s Jim Cramer Tuesday.
“Only 1% of our second half revenue is dependent on any of the products that come out of Midland, so as far as 2020 goes, we would expect, you know, a minimal impact,” he mentioned in a “Mad Money” interview.
Corteva is predicted to produce $5.47 billion in gross sales, down 1.5% from the 12 months prior, when it reviews outcomes for the second quarter in late July. Analysts predict its crop safety enterprise to slip a little additional at 3.3%, in accordance to Factset.
About 10,000 individuals within the metropolis of Midland had been ordered to depart residence — the second time inside a 24-hour interval — final Tuesday due to “catastrophic dam failures.” Officials warned that quickly rising water spilling over the dams may depart components of town of 42,000 residents below doubtlessly 9 ft of water.
Residents in boats examine the floodwaters flowing from the Tittabawassee River into the decrease a part of downtown on May 20, 2020 in Midland, Michigan.
Gregory Shamus | Getty Images
Michigan Gov. Gretchen Whitmer on Tuesday declared a state of emergency for Midland County after a number of days of extreme rainfall brought on water to breach the levee. Midland is about 130 miles northwest of Detroit.
Dow, which is headquartered in Midland, shut down all of its working items on Wednesday after floodwaters had reached its premises. The industrial complicated consists of services for Corteva and DuPont, each a part of the June 2019 spin-off.
The waters, nevertheless, crested at a decrease degree than feared, Collins defined. He didn’t say, nevertheless, when he expects operations to resume on the plant.
“And my biggest concern right now is for our employees,” he mentioned. “We’ve had over 400 of our Corteva colleagues that were directly affected in their homes in the city of Midland and we’re going to work awful hard to make sure they’re taken care of as well.”