FMC Profit Hit by Long North American Winter, But Sees Quick Recovery
7 May 2014 FMC Agricultural Solutions on Wednesday said its first-quarter profit dropped 26%, as the harsh North American winter sapped demand for pre-emergent products, and in Brazil, dry conditions depressed sugarcane production.
The crop protection unit of FMC Corp. posted earnings of $120.1 million and revenue of $466.9 million, down 26% and 6% from a year ago, respectively. The company was also hit by unfavorable foreign exchange translations, as well as spending in sales and marketing and weather-related changes in product mix.
Looking ahead, FMC expects a recovery from delayed first-quarter sales and a favorable crop mix toward soybeans and North America, which will boost herbicide demand. In Latin America, larger cotton and soybean acres and increased sugarcane production in Brazil will contribute to greater growth in the second half of 2014. New product introductions and benefits from market access investments will also contribute to expected growth.
FMC Agricultural Solutions said these factors will contribute to its expectation of mid-teens growth on a percentage basis in full-year earnings compared with 2013.
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