FMC 1Q Net Up 12% on Higher Sales

FMC Corp.s (FMC) first-quarter profit grew 12% on stronger sales in its agricultural-products and special-chemicals segments.

Shares fell 2% to $64 in after-hours trading as the company projected second-quarter earnings of $1.15 to $1.25 a share. Analysts average estimate was $1.27, according to Thomson Reuters. FMC also raised its 2010 target to $4.45 to $4.80 from $4.35 to $4.75 as first-quarter profit topped forecasts.

President and Chief Executive Pierre Brondeau, who assumed those jobs at the beginning of this year, said the company saw demand recover in its industrial chemicals segment, which has been weak during the recession.

FMC, which makes a range of chemical products from insecticide to hydrogen peroxide, performed better than rivals during the recession because only 40% of sales are tied to the more economically sensitive areas of industrial chemicals.

For the latest quarter, the company reported a profit of $77.4 million, or $1.06 a share, up from $69.1 million, or 94 cents a share, a year earlier. Excluding restructuring costs and other items, earnings rose to $1.34 from $1.22. In February, FMC forecast $1.20 to $1.35.

Revenue rose 9.6% to $756.5 million. Analysts most recently estimated $738.5 million.

Gross margin fell to 35.3% from 40.4%.

Revenue in the companys largest segment by revenue, agricultural products, grew 17% and increased 16% for specialty chemicals, as profits improved for both. Industrial chemicals, the second-largest segment by revenue, posted a 2.3% decline as profit climbed 51%.