Hebei Lansheng Biotech Co., Ltd.
ShangHai Yuelian Biotech Co., Ltd.

FMC Corporation updates fourth quarter 2020 outlookqrcode

Jan. 20, 2021

Favorites Print
Forward
Jan. 20, 2021

- North America business impacted by supply chain disruptions in December.

- Latin America business impacted by severe drought in Brazil and import challenges in Argentina.

- Impacts partially offset by strong sales in Europe and Asia.

- Full-year free cash flow guidance1 for 2020 ($475 to $525 million) unchanged.

- Expect solid 2020 full-year results, with approximately 7 percent organic2 revenue growth and 2 to 3 percent adjusted EBITDA1 growth, despite approximately $250 million FX headwinds.

- Expect 2021 outlook at or somewhat above long-range plan targets of 5 to 7 percent revenue growth and 7 to 9 percent adjusted EBITDA growth.


FMC Corporation (NYSE: FMC) Tuesday announced that the company is reducing its fourth quarter 2020 outlook.  The company is proceeding through its quarterly close, and based on preliminary results expects fourth quarter revenue of approximately $1.15 billion as compared with prior guidance of $1.23 to $1.29 billion, and fourth quarter adjusted EBITDA in the range of $285 to $295 million as compared with prior guidance of $335 to $355 million.  Full-year free cash flow guidance of $475 to $525 million in 2020 remains unchanged.  The company expects 2021 outlook at or somewhat above long-range plan targets of 5 to 7 percent revenue growth and 7 to 9 percent adjusted EBITDA growth. 


In North America, sales were impacted due to supply chain disruptions, including COVID-related factors associated with logistics and a tolling partner.  These events occurred during the traditionally busy month of December, resulting in some products not being delivered to customers by quarter end.  The company expects a large proportion of those sales will be recognized in first quarter 2021.  In Brazil, sales were lower than forecasted due to severe drought that persisted throughout the fourth quarter, resulting in lower demand.  The company expects these conditions to continue through first quarter 2021.  In Argentina, substantial product inventory located in bonded warehouses was not released by customs officials in a timely manner.  This inventory is expected to be released, and sales completed, in first quarter 2021. 


"Despite the global pandemic and these near-term operational challenges, we delivered a solid 2020 and remain highly confident in our 2021 outlook and our ability to deliver FMC's long-range growth plan targets," said Mark Douglas, FMC president and CEO.


1 Although FMC provides forecasts for adjusted earnings per share, adjusted EBITDA, and free cash flow (non-GAAP financial measures), they are not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for us to forecast. Such elements include, but are not limited to, restructuring, acquisition charges, and discontinued operations. As a result, no GAAP outlook is provided.

2 Organic revenue growth (non-GAAP) excludes the impact of foreign currency changes.


Source: FMC

Picture 0/1200

More from AgroNews

I wanna post a press Comment

Subscribe 

Subscribe Email: *
Name:
Mobile Number:  

Comment  

Picture 0/1200

Subscribe to daily email alerts of AgroNews.