FMC Corporation announces first quarter 2009 results

Date:05-06-2009

FMC Corporation reported net income of $69.1 million, or $0.94 per diluted share, in the first quarter of 2009, versus net income of $93.9 million, or $1.23 per diluted share, in the first quarter of 2008. Net income in the current quarter included restructuring and other income and charges of $20.2 million after-tax, or charges of $0.28 per diluted share, versus restructuring and other income and charges of $2.7 million after-tax, or a gain of $0.04 per diluted share, in the prior-year quarter. Excluding these items in both periods, the company earned $1.22 per diluted share in the current quarter, an increase of 3 percent versus $1.19 per diluted share in the first quarter of 2008. First quarter revenue of $690.5 million decreased 8 percent versus $750.2 million in the prior year.

William G. Walter, FMC chairman, president and chief executive officer, said, "In the first quarter, we delivered record earnings per share and met our expectations. Our strong results were achieved despite the impact of the global recession, which significantly reduced volumes across several of our businesses. Agricultural Products results were driven by strong performance in North America and Europe. Specialty Chemicals benefited from higher BioPolymer sales offset by lower lithium volumes. Industrial Chemicals performance directly reflected the impact of lower volumes across the segment."

Revenue in Agricultural Products of $261.4 million was 6 percent lower than the prior-year quarter, as sales gains in North America and Europe were more than offset by lower sales in Latin America, primarily Brazil. Segment earnings of $92.5 million increased 12 percent versus the year-ago quarter, reflecting stronger performance in North America and Europe coupled with favorable product and geographic mix, partially offset by lower performance in Brazil.

Revenue in Specialty Chemicals was $174.6 million, a decrease of 5 percent versus the prior-year quarter. Higher selling prices in BioPolymer were more than offset by lower volumes across lithium. Segment earnings of $38.1 million were 4 percent lower than the year-ago quarter, as lower lithium volumes more than offset strong commercial performance and favorable product mix in BioPolymer.

Revenue in Industrial Chemicals of $256.0 million declined 12 percent from the prior-year quarter, as higher selling prices across the segment were more than offset by volume declines and unfavorable currency translation. Segment earnings of $22.8 million were 36 percent lower than the year-ago quarter, as the lower volumes and higher raw material and energy costs more than offset higher selling prices.

Corporate expense was $11.3 million, as compared to $11.9 million in the prior-year quarter. Interest expense, net, was $7.0 million, down from $8.7 million in the year-ago quarter. On March 31, 2009, gross consolidated debt was $668.2 million, and debt, net of cash, was $613.3 million. For the quarter, depreciation and amortization was $30.3 million and capital expenditures were $31.0 million.

Outlook
Regarding the outlook for 2009, Walter said, "For the full year 2009, we have revised our outlook for earnings before restructuring and other income and charges to $4.40 to $4.80 per diluted share.

"For the second quarter of 2009, we expect earnings before restructuring and other income and charges of $1.10 to $1.20 per diluted share. In Agricultural Products, we look for earnings growth in the mid-single digits driven by strong performance in North America, partially offset by less favorable agrochemical conditions in Brazil. In Specialty Chemicals, we expect earnings to be down 10-15 percent, as strong commercial performance in BioPolymer is more than offset by lower lithium end-use demand and the one-time impact of several plant outages. In Industrial Chemicals, earnings are expected to be down 40-50 percent, as higher selling prices across the segment are more than offset by lower volumes and higher raw material and energy costs."