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Agribusiness, Company News, Finance, India

Asia sales declined 29 per cent (down 28 percent organically), primarily from lower volumes in China due to poor weather.

FMC Corporation reported first quarter 2024 revenue of $918 million, down 32 per cent versus first quarter 2023, and down 31 percent organically. On a GAAP basis, the company reported a loss of $0.02 per diluted share in the first quarter, a decrease of 101 per cent versus first quarter 2023. First quarter adjusted earnings were $0.36 per diluted share, down 80 percent versus first quarter 2023 and $0.04 higher than the midpoint of guidance.

“Free cash flow improved significantly, and we delivered adjusted EBITDA at the high end of our guidance range during the first quarter,” said Mark Douglas, FMC president and chief executive officer. “As expected, sales continued to be impacted by inventory management actions by customers in all regions. Our results benefited from our restructuring actions and the continued resilient sales of our new products, particularly in Latin America.”

First quarter revenue was driven by 27 percent decline in volume due to ongoing channel destocking in all regions.  Price was lower by 4 percent and foreign currency was a headwind of 1 percent.

North America sales declined 48 percent, almost entirely due to volume against a record-breaking prior-year period. Fungicide sales out-performed the portfolio with growth from new products Xyway® and Adastrio® fungicides. In Latin America, revenue declined 20 percent (down 22 percent excluding FX) due to a price decline in the mid-teens as well as lower volumes. Branded diamides and new products both reported higher sales versus prior year, aided by recently launched Premio® Star insecticide and Onsuva® fungicide.

Asia sales declined 29 percent (down 28 percent organically), primarily from lower volumes in China due to poor weather.  Actions to reduce channel inventory in India progressed despite dry conditions that reduced the consumption of crop protection products. Price in the region was down in the high-single digits.  Sales in EMEA declined 20 percent (down 17 percent organically) due to lower volumes including registration removals and rationalization of some lower-margin products.  Price in the region was up by low-single digits.  Plant Health revenue was down 14 percent in the quarter (down 12 percent organically), mainly driven by volume in Europe as customers delayed purchases and managed overall inventory to lower levels.

The company is forecasting full-year 2024 revenue to be in the range of $4.50 billion to $4.70 billion, unchanged since the last guidance and representing an increase of 2.5 percent at the midpoint versus 2023. FMC is maintaining its full year adjusted EBITDA guidance of $900 million to $1.05 billion, flat versus 2023, including the benefit of cost restructuring actions. The 2024 adjusted earnings outlook is unchanged at $3.23 to $4.41 per diluted share, representing a year-over-year increase of 1 percent at the midpoint. The company is maintaining its full-year free cash flow guidance in the range of $400 million to $600 million, representing over $1 billion in year-over-year improvement at the midpoint.

Asia sales declined 29 per cent (down

Company News, People, World

He will join the company’s senior management Operating Committee and will continue to report to Andrew Sandifer, executive vice president and CFO

FMC Corporation, a leading global agricultural sciences company, announced that its board of directors has elected Patrick (Pat) Day as vice president, of Financial Planning & Analysis (FP&A), effective January 1, 2024.  He will join the company’s senior management Operating Committee and will continue to report to Andrew Sandifer, executive vice president and CFO.

“Pat is a highly valued finance business partner with extensive knowledge of FMC’s commercial and functional operations,” said Mark Douglas, president and CEO.  “He brings to the role a deep knowledge of our finance processes, strong business acumen and exceptional analytical capabilities.  He will serve as a key finance leader for the company’s restructuring initiatives.”

Day joined FMC in 2013 as director, of Finance Transformation, a role in which he served as a leader of the company’s One Finance program.  He moved to the FMC European Innovation Centre in Copenhagen, Denmark, in 2016 after being named regional finance director for FMC’s Europe, Middle East, and Africa region.  In 2020, Day returned to FMC’s headquarters in Philadelphia to assume the role of global FP&A director.  Before FMC, he spent six years each with Deloitte Consulting and United Technologies Corporation in a variety of Finance and Finance Transformation roles. 

He will join the company's senior management

Company News, Finance, World

Announces strategic review of non-core assets including potential sale of FMC’s non-crop product line, Global Specialty Solutions

FMC Corporation hosted its Investor Day at FMC corporate headquarters in Philadelphia where the company introduced its new strategic growth plan, reviewed three-year financial goals and longer-term financial aspirations through 2033, and provided its preliminary outlook for 2024.  The company also outlined cost savings targets and key elements that will drive sustained profitable growth.

FMC’s strategic plan is anchored in three core ambitions: to strengthen the company’s relationship with growers, ensuring they receive sound, accurate and timely guidance about the right products and technologies that best address their needs; deliver superior growth and returns; and to maintain the company’s leadership in safety, sustainability and innovation.  Actions and specific plans that drive each ambition are summarised in eight strategic imperatives.

Mark Douglas, president and chief executive officer said,  “These range from strengthening our relationship with growers to ensure they have the best guidance on using the right technologies that address their needs, growing our leading Plant Health business, accelerating the discovery and commercialisation of our R&D pipeline, and increasing operating leverage that leads to a leaner organization.  Executing these initiatives will provide more valuable tools to growers to protect their crops while FMC achieves growth on the top and bottom line.”

Development and commercial launch of new products was a significant Investor Day theme, with Diane Allemang, executive vice president and chief marketing officer, presenting new patented formulations and mixtures of existing molecules, including FMC’s industry-leading diamides, as key drivers of revenue growth.  Dr Seva Rostovstev, vice president and chief technology officer, provided details on the R&D pipeline including four new active synthetic ingredients that are expected to provide approximately $2 billion of revenue by 2033.  New products and innovation were also key themes presented by the vice president and global Plant Health business director Dr Bénédicte Flambard, who outlined the company’s plan to grow FMC’s biologicals platform to approximately $2 billion in revenue by 2033.  Ronaldo Pereira, executive vice president and president of Americas, discussed how strengthening FMC’s relationship as a trusted advisor to growers will help support the new product introductions in the years to come.  Vice President of Procurement, Logistics and Global Facilities, Thaisa Hugenneyer reviewed how a resilient, agile, cost-efficient supply chain will support existing as well as new products throughout the strategic plan timeframe.

Announces strategic review of non-core assets including

Company News, Finance, World

Third quarter results significantly impacted by lower sales in Latin America channel destocking in all regions

FMC Corporation reported a third-quarter 2023 revenue of $982 million, a decrease of 29 per cent versus the third quarter of 2022 and down 29 per cent organically. On a GAAP basis, the company reported a net loss of $0.03 per diluted share in the third quarter, down 103 per cent versus the third quarter of 2022. Adjusted earnings were $0.44 per diluted share, a decrease of 64 per cent versus the third quarter 2022.

“Our results were significantly below the prior year driven by volume headwinds from a continuation of channel destocking behaviour that began in the prior quarter.  Destocking was much worse than anticipated in Brazil. Despite this, on-the-ground application remains steady as growers continue to protect their crops,” said Mark Douglas, FMC president and chief executive officer.  “Branded diamides and our new products outperformed the overall portfolio, which illustrates robustness for differentiated and higher value products even in challenging environments.”

Revenue in the quarter was driven by a 26 per cent decline in volume. Price increases in North America, EMEA and Asia were more than offset by price decreases in Latin America. FX impacts were neutral to revenue.  While overall sales were down 29 per cent, sales of products launched in the last five years were up 4 per cent year-over-year, with growth in all regions.

Sales in all regions declined versus the prior-year period as partners, the distribution channel and growers continued to reduce inventory levels. In North America, revenue was down 34 per cent year-over-year (down 34 per cent organically). EMEA revenue declined 1 per cent (down 4 per cent organically) compared to the third quarter of 2022, as higher pricing and FX tailwinds mostly offset lower volumes. Sales in Asia declined 28 per cent (down 23 per cent organically) as continued destocking across the region negatively impacted volumes. The region reported a 16 per cent growth in products launched in the last five years. In Latin America, revenue was down 33 per cent (down 36 per cent organically) year-over-year driven mainly by lower volumes primarily due to severe destocking in Brazil and, to a lesser extent, drought conditions in Argentina.  Globally, Plant Health revenue was down 20 per cent (down 17 per cent organically) versus the prior year driven by similar, but less severe channel destocking dynamics. 

Third quarter results significantly impacted by lower sales in Latin America channel destocking

Company News, People, World

Scanlan joined the company on September 25, 2023. She is assuming the role previously held by Kyle Matthews, who passed away earlier this year

FMC Corporation announced that Jacqueline (Jackie) Scanlan has been named executive vice president and chief human resources officer (CHRO). Scanlan will lead the global Human Resources (HR) function and assume responsibility for FMC’s global Diversity, Equity and Inclusion (DEI) strategy and team. She will report to Mark Douglas, FMC president and chief executive officer.

Scanlan is a seasoned HR professional with over 25 years of experience at multinational companies across various industries. She joins FMC from Axalta Coating Systems, where she served as senior vice president and CHRO since 2021. She has held senior HR roles at several leading companies, including Haemonetics Corporation, Novo Nordisk and Campbell Soup Company.

“Jackie brings extensive experience in HR management with significant focus in areas such as organisation and people strategy, change and talent management, leadership development, culture and HR functional excellence,” said Douglas. “She is ideally suited to lead our Human Resources and Diversity, Equity and Inclusion organisations. I am pleased to welcome her to the FMC executive team and look forward to her leadership.”

Scanlan joined the company on September 25, 2023. She is assuming the role previously held by Kyle Matthews, who passed away earlier this year.

Scanlan joined the company on September 25, 2023.

Agro chems – Chemicals, Agro chems – Fertilizers, Agro chems – Pesticides, Company News, Finance, World

Abrupt and unprecedented reductions in inventory by growers and the distribution channel led to significant volume decline despite steady on-the-ground consumption.

FMC Corporation has reported second quarter 2023 revenue of $1.01 billion, down 30 percent versus second quarter 2022, and down 28 percent organically. On a GAAP basis, the company reported earnings of $0.24 per diluted share in the second quarter, a decrease of 77 per cent versus second quarter 2022. Second quarter adjusted earnings were $0.50 per diluted share, down 74 percent versus second quarter 2022.

“FMC delivered second quarter results in-line with recently adjusted guidance expectations. Active inventory management by growers and the distribution channel drove unprecedented volume declines and as a result we now expect the overall crop protection market to contract high-single-digits to low-double-digits percent this year despite steady on-the-ground usage by growers,” said Mark Douglas, FMC president and chief executive officer.

Revenue in the quarter was driven by a 31 per cent decline from volume. Price was up 3 percent, partially offset by a 2 percent foreign currency headwind. Demand for the company’s innovative products remained resilient as sales from new products launched in the last five years were essentially flat to the prior-year period despite the overall sales drop. Branded diamides performed better than the rest of the portfolio, with reduced partner sales the main driver of volume decline in diamides.

North America revenue was down 25 percent (down 24 percent organically) versus the prior-year period as partners, the distribution channel and growers reduced inventory. Branded diamides in the region showed strong growth largely due to high insect pressure in Canada. Sales in EMEA declined 26 percent (down 24 percent organically) compared to second quarter 2022 due to channel and grower destocking as well as adverse weather conditions across Europe. Volume headwinds were partially offset by strong pricing gains in the region. In Latin America, revenue was down 38 percent versus the prior-year period driven by significantly lower volumes as destocking was amplified by a historic drought in southern Brazil and Argentina. Sales in Asia declined 29 percent (down 23 percent organically) year-over-year.

As expected, India continued to manage high channel inventory and was impacted by challenged growing conditions in most of the country. Globally, Plant Health revenue was down 31 per cent (down 25 percent organically) versus prior year driven by similar channel dynamics as the rest of the crop protection portfolio.

FMC second quarter adjusted EBITDA was $187.6 million, a decrease of 48 per cent from the prior-year period. The negative impact of volume more than offset the gains from better year-over-year prices and costs. Cost was a positive driver of adjusted EBITDA for the first time since 2020. FX was a headwind to adjusted EBITDA.

Full Year 2023 Outlook2

Consistent with the company’s release on July 10, FMC is forecasting full-year 2023 revenue to be in the range of $5.20 billion to $5.40 billion, reflecting a 9 percent decline at the midpoint versus 2022 and full-year adjusted EBITDA is expected to be in the range of $1.30 billion to $1.40 billion, representing 4 percent decline year-over-year at the midpoint. The forecast for the 2023 adjusted earnings range is lowered to $5.86 to $6.80 per diluted share, representing a year-over-year decrease of 15 percent at the midpoint. The company is lowering full-year free cash flow guidance to a range of negative $175 million to positive $175 million due to the lower revenue generated in the first half of the year, lowered adjusted EBITDA guidance and expected lower payables at year end.

Abrupt and unprecedented reductions in inventory by

Company News, Finance, World

Significant cost mitigation actions were initiated, reducing previously expected operating expenses in the second half by $60 to $70 million.

FMC Corporation provided an update for its expectations on the second quarter and full-year 2023 outlook1. Revenue in the second quarter is now expected to be between $1.00 billion and $1.03 billion. Adjusted EBITDA is expected to be in the range of $185 million to $190 million. The revised guidance is driven by substantially lower-than-expected volumes due to an abrupt and significant reduction in inventory by channel partners, which only became evident towards the end of May and continued through the remainder of the quarter in North America, Latin America and EMEA.

Based on current channel dynamics, the Company is revising its full-year financial outlook, with revenue now expected to be $5.20 billion to $5.40 billion. Adjusted EBITDA for the full year is now expected to be $1.30 billion to $1.40 billion.

“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,” said Mark Douglas, FMC president and chief executive officer. “Our full-year revenue outlook and adjusted EBITDA have been revised to reflect these channel dynamics and their impact on volumes, as well as the benefit from improved input costs and the significant operating cost mitigation actions we have already implemented.

“Even as we manage through this market contraction and significant inventory reduction by our channel partners, on-the-ground consumption of our products remains strong and at similar levels to last year,” Douglas said.

Information in this news release is preliminary and excludes the outlook on adjusted earnings per share and free cash flow, which will be updated at the second quarter 2023 earnings call. FMC will announce its second quarter 2023 earnings on Wednesday, August 2, 2023, after the stock market close with a webcast conference call on Thursday, August 3, 2023, at 9:00 a.m. ET. 

Significant cost mitigation actions were initiated, reducing

Agro chems – Chemicals, AgroPolicy, Agrotech, Company News, Interaction, North America

Mark Douglas president and chief executive officer of FMC Corporation emphasised  the need for faster, more efficient registration and regulatory processes to ensure food security.

 Mark Douglas, president and chief executive officer of FMC Corporation, met honourable Prime Minister Narendra Modi at the India – U.S. Innovation Handshake, the technology roundtable hosted at the White House in Washington D.C. on Friday as part of the Prime Minister’s four-day state visit to the U.S.

The event was organized to discuss technology areas of mutual interest and collaboration between the two countries, and roundtable guests included CEOs from leading U.S. and India companies. FMC was the only agriculture-focused company to attend the roundtable with Prime Minister Modi and President Biden.

During the event, participants discussed innovation opportunities in a shared technology ecosystem across varied sectors. Douglas shared perspectives from the crop protection industry, commenting how technology is already driving innovations in the sector, from digital and precision agriculture tools to drones and the discovery of new molecules. These have led to more effective, efficient and sustainable methods to protect crops and increase food production. He also emphasized the need for a more efficient regulatory and registration system, to ensure farmers across India, the U.S. and around the world have faster access to the most advanced crop protection technologies.

“Agriculture has been and continues to be a beneficiary of technological advances from other industries. Technology integration is the key towards advancing agriculture with sustainability and safety at the forefront for farmers in India and around the world. This roundtable offered a platform for us to bring together governments and companies through cooperation and exchange of knowledge,” said Douglas. “India is one of the top three markets for FMC globally. With the swift evolution of the agritech industry across the globe, it is pertinent and crucial for the Indian agriculture ecosystem to be more adaptive, and for policymakers to consider how best to enhance the efficiency of agrochemicals’ regulatory and registration systems. This will support agricultural companies like FMC to quickly bring to market the latest, more sustainable technologies such as microbial and sprayable pheromones to Indian farmers, resulting in more resilient food systems and food security for today and tomorrow.”

As the Indian government continues to take strides towards modernization of the agriculture industry, FMC has made clear its continuing commitment to the country and its progress, just as it has done for more than three decades. 

Douglas added, “It was an honour to participate in this historic meeting, and to serve as the voice of the agricultural industry.  We are grateful to President Biden, Prime Minister Modi, Minister Jaishankar, Secretary Kwatra, National Security Advisor Doval, Secretary Singh, Ambassador Sandhu and the Governments of India and the U.S. for FMC’s invitation.”

Mark Douglas president and chief executive officer

Agrotech, Company News, R&D, Sustainability, World

The 2022 report details FMC’s progress in three focus areas: protection, innovation and engagement

FMC Corporation published the 2022 sustainability report, Science-Driven, People-Focused Solutions for Agriculture. The 12th annual report presents the company’s progress on key sustainability commitments, goals and targets, including net-zero emissions, sustainable innovation, product stewardship, and diversity, equity and inclusion.

“Despite unprecedented challenges in 2022, sustainability remained core to how we operate and serve customers around the world,” said Mark Douglas, president and chief executive officer. “By setting aggressive targets and embedding sustainability across the organisation, we continue to deliver real results that benefit agriculture and society while having a direct impact on the long-term viability and success of our company.”

The 2022 report details FMC’s progress in three focus areas: protection, innovation and engagement. Introduced in 2022 as part of its long-term sustainability strategy, these focus areas guide the company’s efforts to address climate change, advance sustainable farming practices and improve the representation of women and minorities in the industry. Key highlights in the report include FMC’s emissions reduction strategy, which resulted in a 3 per cent reduction in absolute Scopes 1 and 2 emissions and a 2 per cent reduction in absolute Scope 3 emissions. These reductions demonstrate strong progress toward the company’s goal to achieve net zero by 2035, which was verified by the Science Based Targets initiative in early 2023.

The report also highlights FMC’s continued investments in new synthetic technologies as well as innovative biological solutions, like pheromones and peptides, to bring unique, environmentally friendly crop protection solutions to farmers worldwide. As part of its increasingly sustainable product portfolio, 100 per cent of new synthetic products in its development pipeline meet the company’s sustainable innovation criteria. Additionally, the company has one of the fastest-growing plant health platforms in the industry.

“FMC is uniquely positioned to deliver solutions to key challenges in agriculture and the environment,” said Karen Totland, vice president and chief sustainability officer. “With world-class innovation capabilities and strategic partnerships, we continue to deliver new technologies that help farmers sustainably protect their crops while building resiliency to climate impacts.”

The 2022 report details FMC's progress in