FMC agchem sales down 6% in Q1 2014

FMC's agrochemical sales recorded a 5.7% decrease to $466.9 million in the first quarter ended Mar 31. 2014. First-quarter segment earnings decreased by 26.5% to $120.1 million. In North America, persistent cold weather throughout the quarter delayed demand for pre-emergent products, and in Brazil, dry conditions depressed production in sugarcane.

The segment operating margin was lower compared to the prior-year quarter primarily due to unfavorable foreign exchange impacts, continued investment in sales, marketing and technical personnel and weather-related changes in product mix.

FMC’s Agricultural Solutions revenues results ($ million)
Q1 ended Mar. 31	Q1 2014	Q1 2013	Change %
Sales	466.9	495.2	-5.7
Operating profit	120.1	163.3	-26.5

For the remainder of the year, multiple factors will contribute to delivering the expected mid-teens percent growth in full-year segment earnings over 2013. A recovery in North America will drive greater demand for FMC's herbicides compared to the previous planting season. In Latin America, larger cotton and soybean acres and increased sugarcane production in Brazil will contribute to greater growth in the second half of 2014. New product introductions and benefits from market access investments will also contribute to expected growth.

Outlook

Despite the weather impacting FMC Agricultural Solutions business in the quarter, they are still confident that their new product innovations and strong customer relationships will deliver another record year in Agricultural Solutions.