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Saturday / November 23. 2024
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FMC Corporation confirms full-year outlook adjusted for expected sale of GSS business

FMC Corporation reported third quarter 2024 revenue of $1.07 billion, an increase of 9 percent versus third quarter 2023 and up 12 per cent organically. On a GAAP basis, the company reported net income of $0.52 per diluted share in the third quarter, up from a net loss of $0.03 per diluted share in the third quarter 2023 driven by higher sales and lower costs from restructuring actions as well as a lower effective tax provision. Adjusted earnings were $0.69 per diluted share, an increase of 57 per cent versus third quarter of 2023.

Third Quarter Adjusted EPS versus Prior-Year Quarter
Adjusted EBITDA+25 cents
Interest Expense+4 cents
Depreciation & Amortization+2 cents
Minority Interest-1 cent
Taxes+3 cents
Rounding-1 cent
“We delivered revenue and earnings growth as market conditions improved although at varying rates across the regions,” said Pierre Brondeau, FMC chairman and chief executive officer. “Strong volume growth in Latin America and North America more than offset lower pricing, particularly in Brazil and Argentina which accounted for two-thirds of the total company price decline. Despite suboptimal market conditions, we saw increased demand for new products, specifically fluindapyr-based fungicide products, which confirms the strength of FMC’s innovation pipeline.”

Revenue growth in the quarter of 9 per cent was driven by a 17 per cent increase in volume, with some North America second half orders occurring earlier than expected due to improved channel inventory levels. Price was lower by 5 per cent, driven primarily by Latin America due to challenging market conditions in Brazil and Argentina including delayed rains and elevated channel inventory. In addition, the bankruptcy of a large customer led FMC to offer additional incentives to replace lost volumes and maintain market share. Sales in Asia declined 10 per cent (down 12 per cent organically) due to volume declines, mainly in India, as well as lower pricing. In Latin America, revenue improved 8 per cent year-over-year (up 15 per cent organically).
FMC RevenueQ3 2024
Total Revenue Change (GAAP)9%
Less FX Impact(3)%
Organic1 Revenue Change (Non-GAAP)12%

Third quarter adjusted EBITDA was $201 million, an increase of 15 per cent versus the prior-year period and above the top-end of our guidance range. Higher sales volume, FX tailwinds and above-target restructuring benefits more than offset lower pricing and the recognition of unabsorbed fixed costs from lower manufacturing activity in prior periods.

Full-Year 2024 Outlook
The company is confirming its full-year 2024 outlook for sales and EBITDA and updating its outlook for adjusted EPS. The midpoints for sales and EBITDA are adjusted for the imminent sale of the GSS business, which is expected to close in early November. Full-year revenue guidance has tightened to be in the range of $4.33 billion to $4.44 billion, representing a 2 per cent decrease at the midpoint versus 2023. Mid-single digit volume growth is expected to be more than offset by price and, to a lesser extent, FX headwinds. Full-year adjusted EBITDA range has been narrowed and is expected to be $885 million to $915 million, an 8 percent decline at the midpoint versus prior year. The range for 2024 adjusted earnings per share is updated to be $3.16 to $3.52 per diluted share, representing a decrease of 12 percent year-over-year. The tax rate range is narrowed to 13 to 15 percent, a 150 bps reduction versus prior guidance at the midpoint. The company is maintaining its full-year free cash flow guidance range of $400 million to $500 million.

Fourth Quarter Outlook

The fourth quarter outlook has been adjusted to reflect the imminent sale of the GSS business ($20 million loss in revenue and $10 million loss in EBITDA) and outperformance in Q3. Fourth quarter revenue is now expected to be in the range of $1.30 billion to $1.41 billion, a 19 per cent increase at the midpoint compared to fourth quarter 2023. Adjusted EBITDA is forecasted to be in the range of $321 million to $351 million, representing a 32 per cent increase at the midpoint versus fourth quarter 2023. FMC now expects adjusted earnings per diluted share to be in the range of $1.47 to $1.83 in the fourth quarter, which represents an improvement of 54 per cent at the midpoint versus fourth quarter 2023.

FMC Corporation confirms full-year outlook adjusted for

The insecticide falls in the Green category and is being produced by IIL under the Make in India initiative that would benefit marginal and small farmers in India

Insecticides (India) Limited (IIL), an agrochemical company has announced the insecticide ‘Mission’ which would attack different types of lepidopteran pests affecting sugarcane crops and other crops like paddy, soybean and vegetables.

According to the company statement, the insecticide Mission will be available in granules as well as liquid form. The insecticide falls in the Green category and is being produced by IIL under the Make in India initiative that would benefit marginal and small farmers in India. It was imported earlier. The mission is well designed to control the spread of stem borer and leaf folders in paddy and other crops.

Rajesh Aggarwal, Managing Director, Insecticides (India), said, “We are pleased to launch Mission today under our Make in India Initiative after Torry, Green Label, Dominant and Stunner. The mission is the latest technology insecticide which can be used on a variety of crops and provide good control to farmers against lepidopteran pests, ensuring good crop health and high yield. We are confident that Mission will help our Indian farmers to improve their income through effective protection for a superior harvest.”

The insecticide falls in the Green category

It aims to fight white grub, thrips and aphids in groundnut; grey weevil, mealy bug, jassids, whitefly, thrips and aphids in cotton; and termite and early shoot borer in sugarcane crop. 

Hyderabad based FMC India, an agricultural sciences company has announced its portfolio expansion with three new products in support of Indian farmers to achieve better yields through good quality produce and an improved soil profile.

Commenting at the launch event, Ravi Annavarapu, President, FMC India, said, “FMC India has served Indian farmers for more than three decades, and we are committed to enabling their prosperity, while contributing to the sustainability of Indian agriculture.”

Talstar® Plus insecticide is a novel broad-spectrum premix that provides protection against sucking and chewing pests which are a big pain point for Indian farmers of groundnut, cotton and sugarcane crops. The product gives farmers a superior tool to fight white grub, thrips and aphids in groundnut; grey weevil, mealy bug, jassids, whitefly, thrips and aphids in cotton; and termite and early shoot borer in sugarcane crop. 

Petra® Biosolution is a new generation customized solution powered by reactive carbon technology to improve the physical and biological properties of soil. It provides crops with the much-needed head start by mobilizing the applied phosphorus in the soil. Fortified with organic matter, Petra® Biosolution acts as a source of food for soil microbes, while facilitating nutrient uptake, improving soil texture and enhancing soil fertility. It is easy to use, suitable for majority of crops, and creates a solid foundation for healthy soil, root and plants.

Cazbo® crop nutrition, a specialty micronutrient solution, effectively nourishes crops by supplementing essential elements like calcium, zinc and boron, and working to correct multiple deficiencies and related disorders in most crops. It provides better efficiency compared to traditional calcium solutions when utilized in appropriate dosage and at the right stage of the crop growth cycle. Cazbo® crop nutrition promises to contribute significantly to improved fruit quality and storage potential of the crop.

FMC India has also partnered with Professor Jayashankar Telangana State Agricultural University (Hyderabad) on a Model Village Program to promote sustainable agricultural practices.

It aims to fight white grub, thrips