- Third quarter revenue and earnings outlook reduced primarily
due to lower volumes in Latin
America as destocking was more severe than anticipated
- Results in EMEA, Asia and
North America were broadly in line
with expectations
- Company initiates an immediate restructuring process in
Brazil and launches a broader,
more comprehensive process to review and adjust total Company cost
structure
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PHILADELPHIA, Oct. 23,
2023 /PRNewswire/ -- FMC Corporation (NYSE:FMC) today
provided an update on third quarter expectations compared to its
previously provided outlook1. Revenue in the third
quarter is now expected to be $982
million with adjusted EBITDA of $175
million and adjusted earnings per share of $0.44. The revised outlook is mainly driven
by substantially lower sales volumes in Latin America, particularly destocking in
Brazil and to a lesser degree
drought in Argentina. While
results for EMEA, North America
and Asia were broadly in line with
Company expectations, destocking behavior continued in those
regions as well.
Based on the current demand environment, the Company is revising
its fourth quarter and full year outlook.
|
FY
2023
|
Q4
2023
|
Revenue
|
$4,480M to
$4,720M
|
$1,139M to
$1,379M
|
Adjusted
EBITDA
|
$970M to
$1,030M
|
$246M to
$306M
|
"During the third quarter we observed continued channel
destocking in all regions; however, the magnitude of the destocking
in Brazil was much greater than we
had anticipated," said Mark Douglas,
FMC president and chief executive officer. "While application of
products by growers remains stable, significant global destocking
impacts are expected to persist into next year and we have adjusted
our full year outlook accordingly. With destocking conditions not
expected to improve in the near-term, we have initiated an
immediate restructuring process for our operations in Brazil and have launched a broader, more
comprehensive process to review and adjust our total Company cost
structure. We will discuss these actions and our 2024 outlook at
our Investor Day on November
16th."
Information in this news release is preliminary and intended to
be an outlook update. The Company will provide more detail on
topics such as cash flow via its upcoming earnings release.
FMC will announce its third quarter 2023 earnings on
Monday, October 30, 2023, after the
stock market close with a webcast conference call on Tuesday, October 31, 2023, at 9:00 a.m. ET.
About FMC
FMC Corporation is a global agricultural sciences company
dedicated to helping growers produce food,
feed, fiber and fuel for an expanding world population
while adapting to a changing environment. FMC's innovative
crop protection solutions – including biologicals, crop nutrition,
digital and precision agriculture – enable growers, crop advisers
and turf and pest management professionals to address their
toughest challenges economically while protecting the environment.
With approximately 6,600 employees at more than 100 sites
worldwide, FMC is committed to discovering new herbicide,
insecticide and fungicide active ingredients, product formulations
and pioneering technologies that are consistently better for the
planet. Visit fmc.com to learn more and follow us
on LinkedIn®.
Statement under the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995: FMC and its
representatives may from time to time make written or oral
statements that are "forward-looking" and provide other than
historical information, including statements contained in this
press release, in FMC's other filings with the SEC, and in reports
or letters to FMC stockholders.
In some cases, FMC has identified these forward-looking
statements by such words or phrases as "will likely result," "is
confident that," "expect," "expects," "should," "could," "may,"
"will continue to," "believe," "believes," "anticipates,"
"predicts," "forecasts," "estimates," "projects," "potential,"
"intends" or similar expressions identifying "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, including the negative of those words or
phrases. Such forward-looking statements are based on our current
views and assumptions regarding future events, future business
conditions and the outlook for the company based on currently
available information. The forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results to be materially different from any results, levels
of activity, performance or achievements expressed or implied by
any forward-looking statement. These statements are qualified by
reference to the risk factors included in Part I, Item 1A of our
Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Form 10-K"), the
section captioned "Forward-Looking Information" in Part II of the
2022 Form 10-K and to similar risk factors and cautionary
statements in all other reports and forms filed with the Securities
and Exchange Commission ("SEC"). Moreover, investors are cautioned
to interpret many of these factors as being impacted as a result of
the residual adverse impacts of COVID and governmental, business,
and societal responses to COVID. We wish to caution readers
not to place undue reliance on any such forward-looking statements,
which speak only as of the date made. Forward-looking
statements are qualified in their entirety by the above cautionary
statement.
We specifically decline to undertake any obligation, and
specifically disclaims any duty, to publicly update or revise any
forward-looking statements that have been made to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events, except as may be
required by law.
This press release contains certain "non-GAAP financial
terms" which are defined on our website www.fmc.com/investors. Such
terms include adjusted EBITDA, adjusted earnings, free cash flow
and organic revenue growth. In addition, we have also provided on
our website reconciliations of non-GAAP terms to the most directly
comparable GAAP term.
1.
|
Although we provide
forecasts for adjusted earnings per share, adjusted EBITDA and free
cash flow (non-GAAP financial measures), we are not able to
forecast the most directly comparable measures calculated and
presented in accordance with GAAP. Certain elements of the
composition of the GAAP amounts are not predictable, making it
impractical for us to forecast. Such elements include, but are not
limited to, restructuring, acquisition charges, and discontinued
operations. As a result, no GAAP outlook is provided.
|
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SOURCE FMC Corporation