FMC Sales Accelerate in Latin America, Asia
30 October 2013 
FMC, the Philadelphia-based chemicals company that is making a push into biologicals, said quarterly revenue jumped 16% on buoyant sales in Latin America.
FMC’s Agricultural Solutions business posted third-quarter revenue of $530.2 million, up 25% percent. It cited a rebound in Brazil’s cotton acreage, greater soybean planted area and growth in newly introduced products. In Asia, direct market access efforts boosted sales. Insecticide demand declined in North America as pest pressures were weaker than a year ago.
On a conference call with investors, CEO Pierre Brondeau said that as the company looks to the next decade, growers will need a combination of synthetic chemistry and biologically based products: “The ag biological market is estimated at about $1.5 billion to $2 billion today and is expected to grow 10% to 15% per year through the rest of this decade and beyond. This is why we think now is the right time to invest in the biological space,” he said.
Net profit for the ag segment climbed 13% to $114.2 million as volume gains were partially offset by regional mix, continued investments to support growth and short-term foreign exchange volatility, according to FMC.
FMC said it expects to post its 10th straight year of record profits for the Agricultural Solutions business on continued growth and market penetration in Latin America, and volume gains in nearly all geographies, plus benefits from newly introduced products.
FMC, which comprises health and nutrition and minerals businesses in addition to agricultural products, posted net income of $17.9 million, or 13 cents per share, compared with $90 million, or 65 cents per share in the year-earlier period. FMC took a charge totaling 69 cents per share in the quarter. Adjusted earnings were 82 cents per share in the most recent period.
The company announced earlier this month it expanded its agreement with Danish biosciences firm Chr. Hansen to develop and commercialize biological crop protection products for more crop types and regions. It also acquired the U.S.-based Center for Agricultural and Environmental Biosolutions (CAEB), which it said has amassed an extensive library of microorganisms and a pipeline of biological products in various stages of development.
“We are building a novel end-to-end biological crop protection platform by bringing together Chr. Hansen’s biological capabilities and fermentation expertise, CAEB’s extensive library of microorganisms and product pipeline; and FMC’s core strength in formulation science, registration, field development and marketing,” Brondeau said on the conference call. “This biological discovery and development model will allow us, FMC, to exclusively introduce novel products through our global market access.”
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