FMC Corporation (NYSE: FMC), a leading agricultural sciences company, has announced its financial results for the second quarter of 2023, reflecting a decline in revenue and earnings compared to the same period last year.
FMC Corporation Q2 2023 Highlights:
- Revenue: FMC Corporation reported $1.01 billion, down 30% compared to Q2 2022.
- GAAP Earnings: $0.24 per diluted share, a decrease of 77% versus Q2 2022.
- Adjusted Earnings: $0.50 per diluted share, down 74% versus Q2 2022.
- Adjusted EBITDA: $187.6 million, a decrease of 48% from the prior-year period.
Regional Performance:
- North America: FMC Corporation revenue down 25% due to reduced inventory and high insect pressure in Canada.
- EMEA: Sales declined 26% due to channel and grower destocking and adverse weather conditions across Europe.
- Latin America: Revenue down 38% driven by lower volumes and a historic drought in southern Brazil and Argentina.
- Asia: Sales declined 29% year-over-year, impacted by high channel inventory and challenged growing conditions.
FMC Corporation Full Year 2023 Outlook:
- Revenue: FMC Corporation forecasted to be in the range of $5.20 billion to $5.40 billion.
- Adjusted EBITDA: Expected to be in the range of $1.30 billion to $1.40 billion.
- Adjusted Earnings: Lowered to $5.86 to $6.80 per diluted share.
- Free Cash Flow Guidance: Range of negative $175 million to positive $175 million.
CEO’s Statement:
Mark Douglas, FMC president and CEO, stated that the results were in line with recently adjusted guidance expectations. He emphasized that active inventory management by growers and the distribution channel led to unprecedented volume declines. Despite the overall sales drop, the demand for the company’s innovative products remained resilient, with branded diamides performing better than the rest of the portfolio.
Second Half Outlook:
- Q3 2023: Revenue expected to be $1.19 billion to $1.27 billion; Adjusted EBITDA in the range of $240 million to $290 million.
- Q4 2023: Revenue expected to be $1.66 billion to $1.78 billion; Adjusted EBITDA in the range of $511 million to $561 million.
Douglas further commented on the global resetting of inventory levels in the crop protection market and expressed optimism for growth in adjusted EBITDA in the second half of the year due to lower costs, price increases, and strong demand for innovative products.
Photo by Riccardo Atrot on Unsplash
You must log in to post a comment.