FMC Agricultural Solutions reported third-quarter revenue of $552 million and segment earnings of $118 million, a record third quarter earnings performance for the segment.
Pierre Brondeau, FMC president, CEO and chairman said: “FMC delivered a very strong quarter. In Ag Solutions, we are especially pleased with the significant volume growth in Latin America and North America.”
Third quarter segment revenue grew 6% year-over-year, excluding India. The increase was driven by strong volume growth in the Americas, offset by revenue declines in Asia and Europe. The company took actions in India to prepare for the integration of the different market access channels between FMC and the acquired business, which reduced overall Agricultural Solutions revenue by 7%. In total, third-quarter revenue was down 1% year over year. Segment earnings increased 31% compared to the third quarter of 2016, with volume gains and lower costs having the largest impact.
Agricultural Solutions full-year revenue is forecasted to be in the range of $2.5 and $2.6 billion and segment earnings are expected to be in a range of $465 to $485 million. The legacy Agricultural Solutions business is expected to contribute $2.3 billion to $2.4 billion of revenue and $425 to $445 million of earnings in 2017; this legacy contribution to segment earnings guidance represents 9% year-over-year growth and a $5 million increase versus prior guidance, at the mid-point. Fourth quarter segment earnings are forecasted to be in the range of $168 million to $188 million.
FMC expects adjusted earnings per share to be in the range of $2.59 to $2.69 for the full year 2017, including the impact of two months contribution from the DuPont Crop Protection acquisition.
Brondeau added, “With Ag Solutions earnings up over 30% in the third quarter, and fourth quarter legacy Ag Solutions expected to post a year-over-year increase of 8%, we believe it is the perfect time to integrate the DuPont business, as our legacy business is performing very well. Conditions in the agriculture industry remain difficult, but we believe they have now stabilized. Now is a good time to be increasing our global footprint in the crop protection market.”