News

FMC revenues up, EPS down

16 Feb 2016

FMC Corporation has reported revenue of $3.28 billion, up slightly compared to 2014, but adjusted earnings from continuing operations were $2.47 per diluted share, a decline of 22 percent compared to the prior year.

FMC Corporation has reported fourth quarter and full year 2015 results. For the year, FMC reported revenue of $3.28 billion, up slightly compared to 2014. The company reported earnings of $489 million, or $3.66 per diluted share. Excluding various restructuring charges and certain gains and charges related to the exit of certain businesses, adjusted earnings from continuing operations were $2.47 per diluted share, a decline of 22 percent compared to the prior year.

For the fourth quarter, FMC reported revenue of $899 million, a 1 percent increase over the same period in 2014. The company reported a net loss of $204 million, or a loss of $1.53 per diluted share, in the fourth quarter of 2015, as compared to net income of $77 million, or $0.57 per diluted share, in the fourth quarter of 2014. Excluding various restructuring charges and certain gains and charges related to the exit of certain businesses, adjusted earnings were $0.77 per diluted share, as compared to the prior-year quarter adjusted earnings of $0.85 per diluted share.

"Market conditions throughout 2015 were some of the most difficult the company has faced,” said Pierre Brondeau, FMC president, CEO and chairman. “In particular, the devaluation of foreign currencies relative to the U.S. dollar, combined with weak agricultural markets created significant challenges for FMC Agricultural Solutions. Foreign exchange movements alone reduced FMC Agricultural Solutions' pro forma operating earnings by 55 percent compared to 2014. Despite challenging conditions in the global crop protection market, we continued to see strong demand for FMC's proprietary products across all regions during the fourth quarter. However, high channel inventory levels in the Americas and foreign currency fluctuations continue to negatively impact this business. The integration of Cheminova continues to go well. In 2015, we realized $100 million in cost reductions, including $40 million from the Cheminova integration, and we are on track to deliver an additional $60 million to $70 million of savings in 2016."

Fourth quarter results were significantly impacted by foreign exchange movements, particularly the depreciation of the Brazilian real against the U.S. dollar, compared to the same period in 2014. Local currency price increases in Brazil recovered over 70 percent of the currency impact in the quarter. FMC Health and Nutrition posted a 5 percent increase in operating earnings, as manufacturing excellence initiatives and other cost reductions more than compensated for lower revenues.

FMC Health and Nutrition fourth quarter revenue was $172 million, 10 percent lower versus the prior-year quarter, driven by lower carrageenan and alginate sales, along with the impact of the weaker euro. Segment earnings of $46 million were up 4.5 percent compared to the prior-year quarter, as favorable raw material pricing and lower operating costs more than offset unfavorable foreign currency impacts and lower sales volumes. Segment revenue for 2015 was $785 million, 5 percent lower than 2014, while full-year segment earnings were $195 million, 4 percent higher than 2014.

Segment revenue for the full year of 2016 is anticipated to be approximately $775 million to $825 million, while full-year segment earnings are expected to be between$198 million and $208 million. First quarter segment earnings are expected to be in the range of $46 million to $51 million. Earnings growth in 2016 is expected to be driven primarily by the benefits of operational improvements, along with continued growth in demand for excipients and nutritional products across emerging markets.

Based on an Adjusted Tax Rate of 24 to 26 percent, adjusted earnings per share are expected to be in the range of $2.50 to $2.80 for the full year 2016, an increase of 7 percent (at the mid-point) versus 2015 adjusted earnings per share of $2.47.