FMC Announces Fourth Quarter and Full Year 2015 Results

 

For the fourth quarter, FMC reported revenue of $899 million, a 1 percent increase over the same period in 2014.  The company reported a net loss of $204 million, or a loss of $1.53 per diluted share, in the fourth quarter of 2015, as compared to net income of $77 million, or $0.57 per diluted share, in the fourth quarter of 2014.  Excluding various restructuring charges and certain gains and charges related to the exit of certain businesses, adjusted earnings were $0.77 per diluted share, as compared to the prior-year quarter adjusted earnings of $0.85 per diluted share.  

 

Pierre Brondeau, FMC president, CEO and chairman said:  "Market conditions throughout 2015 were some of the most difficult the company has faced.  In particular, the devaluation of foreign currencies relative to the U.S. dollar, combined with weak agricultural markets created significant challenges for FMC Agricultural Solutions.  Foreign exchange movements alone reduced FMC Agricultural Solutions' pro forma operating earnings by 55 percent compared to 2014.  Despite challenging conditions in the global crop protection market, we continued to see strong demand for FMC's proprietary products across all regions during the fourth quarter.  However, high channel inventory levels in the Americas and foreign currency fluctuations continue to negatively impact this business.   The integration of Cheminova continues to go well.  In 2015, we realized $100 million in cost reductions, including $40 million from the Cheminova integration, and we are on track to deliver an additional $60 million to $70 million of savings in 2016."

 

 

Fourth quarter results were significantly impacted by foreign exchange movements, particularly the depreciation of the Brazilian real against the U.S. dollar, compared to the same period in 2014.   Local currency price increases in Brazil recovered over 70 percent of the currency impact in the quarter.  FMC Health and Nutrition 

 

posted a 5 percent increase in operating earnings, as manufacturing excellence initiatives and other cost reductions more than compensated for lower revenues.  FMC Lithium's performance exceeded expectations and the business saw encouraging demand and pricing trends across the portfolio.

 

 

Fourth quarter revenue for FMC Agricultural Solutions was $657 million, an increase of 5 percent versus reported revenue for the prior-year quarter.  Segment earnings were $101 million, a decline of 22 percent versus prior-year reported results.  On a pro forma basis, as described in the Press Release Schedules on page 7, fourth quarter segment revenue declined 23 percent compared to the same period in 2014, and segment earnings were 8 percent lower compared to the fourth quarter of 2014, as price increases and ongoing cost reduction programs only partially offset the negative impact of foreign currency movements and reduced third-party sales.  Segment revenue for 2015 was $2.25 billion, 4 percent higher than 2014, while full-year segment earnings were $364 million, 27 percent lower than 2014.  On a pro forma basis, segment revenue for 2015 was $2.6 billion, 23 percent lower compared to 2014, and segment earnings were $384 million, 28 percent lower compared to 2014.

 

For 2016, full-year segment revenue is expected to be approximately $2.3 billion to $2.5 billion and full-year segment earnings are expected to be in the range of $380 million to $420 million, with first quarter segment earnings in the range of $70 million to $90 million.