- Provides preliminary 2024 outlook1 including revenue
of $4.65 billion to $4.85 billion, adjusted EBITDA of $1.025 billion to $1.125
billion and free cash flow conversion of greater than 100
percent
- Initiates three-year rolling financial goals with 2026 revenue
expected to be $5.5 billion to
$6.0 billion and adjusted EBITDA of
$1.3 billion to $1.5 billion
- Announces strategic review of non-core assets including
potential sale of FMC's non-crop product line, Global Specialty
Solutions
- Ten-year revenue aspiration includes approximately $2 billion from Plant Health business and
approximately $2 billion from four
new active ingredients in R&D pipeline
PHILADELPHIA, Nov. 17,
2023 /PRNewswire/ --
FMC Corporation (NYSE:FMC) hosted its Investor Day on
November 16 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; to 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 summarized in eight
strategic imperatives.
"We were pleased to host a strong turnout and communicate our
path to profitable growth anchored by strategic imperatives," said
Mark Douglas, president and chief
executive officer. "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
commercialization of our R&D pipeline, and increasing operating
leverage that leads to a leaner organization. Executing on
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 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.
Andrew Sandifer, executive vice
president and chief financial officer, provided an overview of
mid-term financial goals and longer-term aspirations, as well as
expectations for leverage levels. He also provided a
preliminary outlook for 2024.
"We expect 2024 to be a year of substantial cash generation
driven by improved earnings and a release of working capital,"
Sandifer said. "Over the next 18 to 24 months we anticipate
significant free cash flow and a return to more normal leverage
levels with a new average net leverage target of approximately 2
times adjusted EBITDA."
Additional details about FMC's new strategic growth plan and the
full FMC Investor Day presentation and transcript can be accessed
on the FMC investor website.
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,
organic revenue growth and return on invested capital. In addition,
we have also provided on our website reconciliations of non-GAAP
terms to the most directly comparable GAAP term.
- Although we provide forecasts for adjusted earnings per share,
adjusted EBITDA, free cash flow and return on invested capital
(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