FMC Agricultural Solutions Hit by Long Winter, Weak Brazilian Sugarcane Sales

FMC cites extended poor growing conditions for sugarcane for lower crop protection sales.

FMC cited extended poor growing conditions for sugarcane in Brazil for lower crop protection sales.

FMC Corp. said its Agricultural Solutions business fell short in the second quarter due to the prolonged winter in North America, while drought in Brazil hit crop protection sales for sugarcane.

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FMC had said earlier that the long winter had delayed first-quarter sales, but that it expected conditions to improve and sales to recover in remaining quarters of 2014. However, the weather conditions persisted later into the second quarter than expected leading to reduced application of pre-emergent products. “Although sales of Authority brand soybean pre-emergent herbicides increased as expected, the increase was not enough to offset lower than expected sales of other products, particularly Capture LFR corn insecticide,” the company said in a statement.

The Philadelphia-based company also reported that drought conditions in the Sao Paulo state of Brazil were delaying sugarcane sales, but it did not expect the drought to continue through the second quarter. According to FMC, these extended poor growing conditions have resulted in growers reducing their use of crop protection products. “Furthermore, growers have significantly reduced the rate at which they are replanting, which has reduced the use of herbicides and insecticides in the sugarcane segment. The company does not expect conditions to improve in sugarcane during the remainder of 2014,” it said.

FMC said it now expects second-quarter segment earnings for Agricultural Solutions to be up mid-single digits percent compared to the second quarter of 2013. For the full year 2014, revenues and operating earnings for the Agricultural Solutions segment are expected to increase by a mid-single digits percentage over 2013.

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