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FMC announces third quarter 2008 results
Nov. 3, 2008
William G. Walter, FMC chairman, president and chief executive officer, said, "Our record third quarter results were driven by strong sales growth across our businesses. Agricultural Products achieved higher sales in most regions, particularly in Latin America. Specialty Chemicals experienced volume growth in all businesses and higher selling prices in BioPolymer. Industrial Chemicals realized exceptional growth largely as a result of higher selling prices in soda ash and phosphates. Our third quarter performance reflects once again the benefits we derive from the diversity and attractiveness of our end-use markets and their relative low correlation to economic cycles."?
Revenue in Agricultural Products of $263.8 million was 37 percent higher than the prior-year quarter, as increases were realized in most regions, particularly Latin America. Segment earnings of $44.1 million were up 13 percent versus the year-ago quarter. The sales increase more than offset higher raw material costs, spending on growth initiatives and unfavorable currency impacts.?
Revenue in Specialty Chemicals was $198.0 million, an increase of 20 percent versus the prior-year quarter, driven primarily by volume growth in all businesses and higher selling prices in BioPolymer. Segment earnings of $35.9 million increased 7 percent versus the year-ago quarter due to the higher sales, largely offset by increased costs for raw materials, energy and export taxes in Argentina.?
Revenue in Industrial Chemicals was $359.6 million, an increase of 33 percent from the prior-year quarter. Higher selling prices were achieved in all businesses, particularly in soda ash and phosphates. Segment earnings of $67.3 million increased 174 percent versus the year-ago quarter, as the higher sales, improved power market conditions in Spain and favorable currency impacts more than offset higher raw material costs.?
Corporate expense was $12.5 million, as compared to $12.0 million in the prior-year quarter. Interest expense, net, was $7.5 million, down from $8.6 million in the year-ago quarter. On September 30, 2008, gross consolidated debt was $576.0 million, and debt, net of cash, was $481.0 million. For the quarter, depreciation and amortization was $32.6 million, capital expenditures were $59.5 million and spending on acquisitions was $89.8 million net of acquired cash.?
Nine Months Results
Revenue was $2,377.6 million, an increase of 21 percent as compared with $1,958.6 million in the prior-year period. Net income was $258.3 million, up 182 percent from $91.5 million in the year-earlier period. Net income in the current period included restructuring and other income and charges of $17.4 million, versus restructuring and other income and charges of $103.0 million in the prior-year period. Excluding these charges, the company earned $275.7 million in the first nine months of 2008, an increase of 42 percent versus $194.5 million in the first nine months of 2007.?
Revenue in Agricultural Products was $817.9 million, an increase of 24 percent versus the prior-year period. Sales gains were achieved in all regions and benefited from buoyant global agrochemical market conditions, increased planted acres in key crops and new product introductions. Segment earnings were $211.5 million, an increase of 21 percent from the nine months of 2007 as a result of the higher sales and continued global supply chain productivity improvements, which more than offset higher raw material costs.?
Revenue in Specialty Chemicals was $574.2 million, an increase of 15 percent versus the prior-year period driven by strong commercial performance in BioPolymer and lithium specialties. Segment earnings of $116.9 million increased 8 percent versus the year-earlier period as a result of the higher sales, partially offset by higher raw material and energy costs and export taxes in Argentina.?
Revenue in Industrial Chemicals was $988.9 million, an increase of 23 percent versus the prior-year period. Higher selling prices were realized across the segment, particularly in soda ash and phosphates. Segment earnings of $148.1 million increased 133 percent versus the year-earlier period, as the higher sales and improved power market conditions in Spain more than offset higher raw material costs.?
Corporate expense was $37.4 million, as compared to $39.5 million in the year-earlier period. Interest expense, net, was $24.5 million, down from $27.0 million in the prior-year period. For the period, depreciation and amortization was $94.3 million, capital expenditures were $125.9 million and spending on acquisitions was $89.8 million net of acquired cash.?
Outlook
Regarding the outlook for 2008, Walter said, "We have raised our full-year 2008 outlook for earnings before restructuring and other income and charges to $4.45 to $4.55 per diluted share. For the fourth quarter of 2008, we expect strong sales growth across all segments with earnings before restructuring and other income and charges of $0.85 to $0.95 per diluted share. In Agricultural Products, we look for earnings growth to be driven by continued favorable market conditions in Brazil. In Specialty Chemicals, we expect earnings growth to be realized through strong commercial performance in BioPolymer, continued productivity improvements and the full-quarter inclusion of the ISP and Co-Living acquisitions. Industrial Chemicals will once again derive significant benefit from higher selling prices and volume growth across the segment. We are confident that we will achieve these results despite the turbulent global environment."?
FMC will conduct its third quarter conference call and webcast at 11:00 a.m. ET on Wednesday, October 29, 2008. Prior to the conference call, the company will also provide supplemental information on the web including its 2008 Outlook Statement, definitions of non-GAAP terms and reconciliations of non-GAAP figures to the nearest available GAAP term.?
FMC Corporation is a diversified chemical company serving agricultural, industrial and consumer markets globally for more than a century with innovative solutions, applications and quality products. The company employs over 5,000 people throughout the world. The company operates its businesses in three segments: Agricultural Products, Specialty Chemicals and Industrial Chemicals.?
Safe Harbor Statement under the Private Securities Act of 1995: Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning specific factors described in FMC Corporations 2007 Form 10-K and other SEC filings. Such information contained herein represents managements best judgment as of the date hereof based on information currently available. FMC Corporation does not intend to update this information and disclaims any legal obligation to the contrary. Historical information is not necessarily indicative of future performance.
Source: PRNewswire
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