FMC sales increased 8% in Q1 2019
May. 9, 2019
Pierre Brondeau, FMC CEO and chairman said: "In the first quarter, FMC built on the performance of last year with strong financial results that outpaced the industry. Our revenue and EBITDA momentum reflect the benefits of continued strong demand across our portfolio, as well as our geographic balance. We also finalized the spinoff of Livent Corporation in March, completing our Company's transformation into an Agricultural Sciences company."
FMC revenue growth was driven by 9 percent contribution from volume and a 5 percent contribution from price, offset partially by a 6 percent headwind from foreign currencies. FMC achieved higher pricing in all regions. Latin America sales grew 30 percent year over year and greater than 40 percent excluding FX, driven mainly by Brazil, with strong growth in sales for cotton, soybean and sugarcane applications, and strong pricing across the region. In North America, sales increased 7 percent year over year, driven by demand in pre-emergent herbicides for soybeans and insecticides for tree fruits and vegetables. Sales in EMEA grew 3 percent year over year and 11 percent excluding FX, largely due to favorable weather, price increases and demand for our insecticide portfolio. In Asia, revenue increased 1 percent year over year and 8 percent excluding FX, driven by growth in insecticides in China, continued sales synergies in India and strong growth in Pakistan and Japan.
2019 and Second Quarter Outlook
FMC full-year revenue for 2019 is forecasted to be in the range of $4.5 billion to $4.6 billion, an increase of 6 percent at the midpoint versus recast 2018 and $50 million higher than prior guidance. Total company adjusted EBITDA is expected to be in the range of $1.18 billion to $1.22 billion, an increase of 8 percent at the midpoint compared to recast 2018 and $15 million higher than prior guidance. 2019 adjusted earnings are expected to be in the range of $5.62 to $5.82 per diluted share, an increase of 9 percent at the midpoint compared to recast 2018 and $0.07 higher than prior guidance. EPS estimates include the impact of the $100 million in share repurchases completed in the first quarter, but do not include the benefit of repurchases after March 31, 2019. All 2018 recast data used for these comparisons exclude the former Lithium segment.
Second quarter revenue is expected to be in the range of $1.185 billion to $1.215 billion, representing 4 percent growth at the midpoint compared to recast second quarter 2018. Total company adjusted EBITDA is forecasted to be in the range of $325 million to $345 million, representing a 5 percent increase at the midpoint versus recast Q2 2018. FMC expects adjusted earnings per diluted share to be in the range of $1.60 to $1.70 in the second quarter, which represents growth of 10 percent at the midpoint versus recast Q2 2018.
"Looking ahead, we continue to expect that most of the full-year impact of higher raw material costs and currency will occur in the first half of the year. We will mitigate these headwinds through pricing and cost management. With strong demand across the portfolio, we are raising our revenue outlook and full-year earnings guidance," said Brondeau.
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