FMC Corporation Announces Second Quarter 2018 Results

PHILADELPHIA, Aug. 1, 2018 /PRNewswire/ —

Second Quarter 2018 Highlights

• Consolidated revenue of $1.3 billion, up 92 percent versus Q2 ’17
• Consolidated GAAP earnings of $0.96 per diluted share, up 71 percent versus Q2 ’17
• Consolidated adjusted earnings per diluted share of $1.78, up 271 percent versus Q2 ’17
• Agricultural Solutions segment revenue of $1.2 billion, up 8 percent versus Q2 ’17, on a pro forma basis
• Agricultural Solutions segment EBITDA of $344 million, up 202 percent versus Q2 ’17
• Lithium segment revenue of $108 million, up 46 percent versus Q2 ’17
• Lithium segment EBITDA of $51 million, up 85 percent versus Q2 ’17
• 2018 adjusted earnings are expected to be in the range of $5.90 to $6.20 per diluted share, up 123 percent at the mid-point versus 2017¹

FMC Corporation (NYSE: FMC) today reported second quarter 2018 revenue of approximately $1.3 billion, an increase of 92 percent year-over-year.  On a GAAP basis, the company reported earnings of $0.96 per diluted share in the second quarter, or $130 million, which is 71 percent higher than the GAAP earnings of $0.56 per diluted share, or $75 million, in the second quarter of 2017.  Second quarter adjusted earnings were $1.78 per diluted share, an increase of 271 percent year-over-year.

Pierre Brondeau, FMC CEO and chairman said: “FMC delivered a very strong quarter.  In Ag Solutions, we continued to generate robust demand for the recently acquired products as our worldwide integration is progressing very well.  In Lithium, volume increases from our plant in Argentina and average realized price increases of over 20 percent on both lithium hydroxide and carbonate led to a near doubling of Lithium segment EBITDA year-over-year.  We were also very encouraged by the cash flow performance in the quarter, and we have increased our outlook for the full year.”

FMC Agricultural Solutions

FMC Agricultural Solutions reported second quarter revenue of approximately $1.2 billion, an increase of 98 percent year-over-year due to the strength of the DuPont acquisition.  On a pro forma basis, revenue increased 8 percent, with growth in all four regions and particularly strong demand for insecticides.  Segment earnings before interest, tax, depreciation and amortization (EBITDA) of $344 million increased 202 percent year-over-year and were $14 million above the mid-point of the prior guidance range.

Full-year 2018 revenue for Agricultural Solutions is forecasted to be in the range of $4.1 billion to $4.3 billion.  This implies 9 percent year-over-year growth on a pro forma basis.  Full-year segment EBITDA is expected to be in the range of $1.17 billion to $1.23 billion.  Third quarter segment EBITDA is forecasted to be in the range of $195 million to $215 million.  Fourth quarter segment EBITDA is expected to be in the range of $275 million to $315 million.       

Brondeau added, “We expect our second half to be very strong in Ag Solutions, driven by 7 percent year-over-year, pro forma revenue growth at the mid-point of our guidance.”

FMC Lithium

FMC Lithium reported second quarter segment revenue of $108 million, an increase of 46 percent versus the prior-year quarter.  Segment EBITDA increased 85 percent year-over-year to $51 million in the quarter, $2 million above the mid-point of the prior guidance range, driven by higher volumes and higher realized prices in all major product categories.

Segment revenue for the full year of 2018 is expected to be in the range of $430 million to $460 million, an increase of 28 percent at the mid-point compared to 2017.  The outlook for full-year segment EBITDA has been raised by $2 million, to a range of $195 million to $205 million.  This EBITDA forecast represents an increase of 41 percent at the mid-point compared to the prior year.  Third quarter segment EBITDA is expected to be in the range of $45 million to $49 million, which represents an increase of 17 percent at the mid-point compared to the prior-year quarter.   

2018 Outlook

FMC continues to expect adjusted earnings per share to be in the range of $5.90 to $6.20 for the full year 2018, an increase of 123 percent year-over-year.  FMC expects adjusted earnings per share to be in the range of $0.87 to $0.97 in the third quarter and in the range of $1.41 to $1.61 in the fourth quarter.¹  The separate listing of FMC Lithium stock remains on track for October 2018.  FMC announced last week it will name the lithium materials business Livent Corporation following the IPO.

Webcast and Supplemental Information

The company will post supplemental information on the web at www.fmc.com, including its 2018 Outlook Statement, definitions of non-GAAP terms and reconciliations of non-GAAP figures to the nearest available GAAP term. 

About FMC

For more than a century, FMC Corporation has served the global agricultural, industrial and consumer markets with innovative solutions, applications and quality products.  On November 1, 2017, FMC acquired a significant portion of DuPont’s Crop Protection business.  FMC employs approximately 7,000 people throughout the world and operates its businesses in two segments: FMC Agricultural Solutions and FMC Lithium.  For more information, visit www.fmc.com.

Safe Harbor Statement under the Private Securities Act of 1995: Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning specific factors described in FMC Corporation’s 2017 Form 10-K and other SEC filings. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. FMC Corporation does not intend to update this information and disclaims any legal obligation to the contrary. Historical information is not necessarily indicative of future performance.

This press release contains certain “non-GAAP financial terms” which are defined on our website www.fmc.com.  In addition, we have also provided on our website at www.fmc.com reconciliations of non-GAAP terms to the most directly comparable GAAP term. 

1. Although we provide forecasts for adjusted earnings per share and adjusted cash from operations (both of which are 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 and related cash activity.  As a result, no GAAP outlook is provided.