FMC Second-Quarter Earnings, Sales Drop

FMC Corp. reported lower second-quarter earnings and sales, on lower sales volume and foreign currency effects.

The company’s Agricultural Solutions operating profit was $100.7 million, compared with $117.3 million a year ago.

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Agricultural Solutions reported second-quarter revenue of $552 million, down from $625.6 million a year earlier. On a pro forma basis, second quarter segment revenue declined 19% principally due to lower sales volume, largely driven by product rationalization, and foreign currency headwinds. Segment earnings declined 14% compared to pro forma results for second quarter 2015, as the impact of lower sales volumes, less favorable product mix and a stronger U.S. dollar were partially offset by lower operating costs.

For the full-year, segment revenue is expected to be in the range of $2.2 billion to $2.4 billion and segment earnings are expected to be in the range of $380 million to $420 million. Third-quarter segment earnings are expected to be in the range of $80 million to $90 million.

Pierre Brondeau, FMC president, CEO and chairman said: “FMC delivered another strong quarter, reporting adjusted earnings per share above the mid-point of guidance. Ag Solutions continues to realize the benefits of the Cheminova acquisition, reporting segment earnings in line with expectations despite difficult market conditions. Lithium outperformed, more than tripling segment earnings compared to the prior year quarter. Lithium’s performance reflects the success of FMC’s strategy of converting lithium carbonate into higher value downstream specialty products. Health and Nutrition delivered strong margins and cash flow, but revenue and segment earnings were below expectations, largely due to weakness in Omega-3. Overall, I am very pleased with the execution of our strategy. Based on our performance to date and improved outlook for the year, we are increasing guidance for 2016 adjusted earnings per diluted share by 5 cents to $2.60 to $2.90.”

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