Agricultural Product Segment Drives Growth for FMC Corporation
1 May 2012 FMC Corporation’s Agricultural Products segment drove positive first-quarter earnings for the company, which reached Q1 2012 adjusted earnings of $1.94 per diluted share, up 30% on a revenue increase of 18%.
The company’s Agricultural Products segment enjoyed an earnings gain of 29 percent. Revenue in Agricultural Products of $454.2 million increased 32% versus the prior-year quarter as sales gains were achieved in all regions.
“Our Agricultural Products segment expects to achieve its ninth-straight year of record earnings, up 10-15% reflecting increased volumes in all regions, particularly Latin America, North America and Asia, due to strong market conditions and growth from new and acquired products,” Pierre Brondeau, FMC president, chief executive officer and chairman, said in a statement. “In Agricultural Products, we expect segment earnings to be up approximately 5 percent reflecting growth in all regions partially offset by a shift in some sales in North America to the first quarter and higher spending on targeted growth initiatives.
In North America, sales increased significantly driven by strong demand for pre-emergent herbicides, growth from new products and the shift of some sales from the second quarter reflecting an early start to the 2012 season due to favorable weather conditions and high crop prices.
In Latin America, sales also increased significantly, driven by a strong finish to the crop season, particularly in sugarcane and cotton segments, and sales from our new market access joint venture in Argentina.
In Asia, sales gains reflected continued strong demand across the region and growth from new products.
Finally, in Europe, sales increased driven by volume gains in herbicides and fungicides. Segment earnings of $129.7 million increased 29 percent versus the year-ago quarter driven by the sales growth, partially offset by higher spending on targeted growth initiatives.
Source: FMC Corporation, Edited by Stefanie A. Toth, Online Editor
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