FMC Corporation (NYSE: FMC), a globally-renowned agricultural sciences company, has revised its financial outlook for Q2 and the entire fiscal year 2023 amidst unanticipated dynamics in the market. This update was issued today following an unexpected slump in demand volumes from the company’s channel partners in North America, Latin America, and EMEA.
For Q2 2023, FMC anticipates its revenue to land between $1.00 billion and $1.03 billion, while the adjusted EBITDA is expected to range from $185 million to $190 million. This downward revision of estimates results from channel partners’ notable dip in inventory, which became apparent in late May and persisted throughout the quarter.
FMC has updated its full-year financial forecast amid the ongoing channel fluctuations. Revenue is now predicted to be within $5.20 billion to $5.40 billion, with adjusted EBITDA expected to reach between $1.30 billion and $1.40 billion.
FMC Corporation’s President and CEO, Mark Douglas, shared his insights on these unexpected market changes, stating, “Towards the end of May, we experienced unforeseen and unprecedented volume declines in three out of our four operating regions, as our channel partners rapidly reduced inventory levels.” The revised full-year estimates consider these channel dynamics and the corresponding impact on volumes, combined with the benefits of improved input costs and significant operational cost mitigation measures already implemented.
Douglas further emphasized that despite the market contraction and substantial inventory reduction by their channel partners, actual consumption of FMC’s products at the ground level remains robust, akin to last year’s levels. The company remains committed to navigating these market challenges, reinforcing its goal of delivering strong performance for its shareholders.