FMC Corporation reported higher net income and revenues in 2022.
The Philadelphia-based crop protection company operates a research center in Newark that came out of the sale of profitable herbicide product lines and a development pipeline by DuPont to FMC. The deal satisfied antitrust issues when DuPont and Dow combined their agriculture businesses to form Corteva. FMC upgraded a research center at the Stine-Haskall site that had been largely vacant after DuPont’s aggressive downsizings.
As part of the deal, DuPont acquired an FMC business that included a pharmaceutical coatings plant in Newark. That business was later merged with IFF, which now operates the former DuPont-FMC plant, a longtime Newark employer.
FMC revenue for the fourth quarter was $1.62 billion, an increase of 15 percent versus the fourth quarter 2021, driven by higher volume and strong pricing (price increases)
Excluding the impact of foreign currencies, organic revenue grew 17 percent year-over-year. On a Generally Accepted Accounting Principles basis, FMC reported earnings of $2.17 per diluted share in the fourth quarter, up 45 percent versus the fourth quarter of 2021. Adjusted earnings were $2.37 per diluted share, an increase of 12 percent compared to the fourth quarter 2021, and $0.07 above the midpoint of guidance.
“FMC delivered record performance in the fourth quarter, driven by robust volume growth, continued strong pricing actions as well as growth of new products,” said Mark Douglas, FMC CEO. “North America delivered exceptional revenue growth, with Latin America and Europe, Middle East and Africa (EMEA) posting strong gains. Pricing actions more than offset headwinds from cost and FX in the quarter, marking an inflection point in a year that had record input cost inflation.”
FMC revenue growth in the fourth quarter was driven by a 9 percent contribution from volume and an 8 percent contribution from price, offset partially by a 2 percent currency adjustment that reflects a strong dollar.
Sales in North America grew 35 percent versus the fourth quarter of 2021. The U.S. business delivered strong volume and pricing, especially selective herbicides for soybeans and other crops and fungicides for corn. Latin America sales grew 13 percent (up 9 percent organically) year over year driven by robust pricing and continued market access expansion. Dry weather negatively impacted corn and soy planting in Southern Brazil and Argentina. In Asia, revenue was unchanged (up 12 percent organically) versus prior year period.
For the full year, FMC reported revenue of $5.8 billion, an increase of 15 percent compared to 2021. Excluding the impact of foreign exchange, year-over-year sales grew 18 percent organically. On a GAAP basis, the company reported full-year net income of $742 million, up 1 percent versus the previous year, and consolidated earnings of $5.81 per diluted share, a year-over-year increase of 1 percent. Full-year adjusted earnings were $7.41 per diluted share, an increase of 8 percent compared to 2021.
“Full-year results were driven by significant volume and price gains in every region. Our continued focus on new product development, commercial launches and market access investments delivered record results in 2022. More than $600 million in revenue was from new products introduced in the last five years, an increase of over 50 percent from the prior year, and approximately $100 million in revenue from launches in 2022,” Douglas said.
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to take advantage of any cost improvement opportunities while ensuring product availability for our customers,” said Douglas.
First Quarter Outlook2
First quarter revenue is expected to be in the range of $1.41 billion to $1.45 billion, a 6 percent increase at the midpoint compared to first quarter 2022. Adjusted EBITDA is forecasted to be in the range of $345 million to $365 million, flat at the midpoint versus the prior year period given the significantly higher costs expected in the quarter. Adjusted earnings per diluted share is expected to be in the range of $1.63 to $1.83 in the first quarter, representing a decrease of 8 percent at the midpoint versus first quarter 2022 due to anticipated higher interest and tax rates.
About FMC
FMC Corporation is a global agricultural sciences company dedicated to helping growers produce food, feed, fiber and fuel for an expanding world population while adapting to a changing
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environment. FMC’s innovative crop protection solutions – including biologicals, crop nutrition, digital and precision agriculture – enable growers, crop advisers and turf and pest management professionals to address their toughest challenges economically while protecting the environment. With approximately 6,600 employees at more than 100 sites worldwide, FMC is committed to discovering new herbicide, insecticide and fungicide active ingredients, product formulations and pioneering technologies that are consistently better for the planet. Visit fmc.com to learn more and follow us on LinkedIn® and Twitter®.
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