FMC agchem sales up 20% in Q2 2014

FMC's agrochemical sales recorded a 20% increase to $531.2 million in the second quarter ended on June 30th 2014. Second quarter earnings was up 4.8% to $130.7 million.

In the quarter, year-on-year revenue gains were driven by increased demand for FMC's Authority® brand pre-emergent herbicides in North American soybeans and increased herbicide sales in Europe. These sales gains were partially offset by lower North American sales of Capture® LFR at-plant insecticides and continued weak demand from Brazilian sugarcane growers. Segment operating margin decreased compared to the prior-year quarter due to the change in product mix described above, increased business spending and unfavorable foreign exchange movements.

For the first half year of 2014, sales increased by 6.4% to $998.1 million, while operating profit declined by 12.9% to $250.8 million. 

For the full year, agrochemical revenue is expected to increase mid- to high-single digits percent, and segment earnings are expected to grow mid-single digits percent over 2013. Latin American new product introductions and market share gains in cotton and soybeans will be the primary drivers of revenue and earnings growth in the second half of 2014.