FMC Corporation delivers strong third quarter results and confirms 2021 guidance, reports significant growth in revenue and profitability

Third Quarter 2021 Highlights

• Revenue of $1.19 billion, an increase of 10 percent versus Q3 2020 and up 9 percent organically¹

• Consolidated GAAP net income of $160 million, up 43 percent versus Q3 2020

• Adjusted EBITDA of $293 million, up 12 percent versus Q3 2020
  

• Consolidated GAAP earnings of $1.22 per diluted share, up 44 percent versus Q3 2020
  

• Consolidated adjusted earnings per diluted share of $1.43, up 17 percent versus Q3 2020
  

• Share repurchases of $200 million

Full-Year Outlook ²

• Maintains revenue forecast in the range of $4.9 to $5.1 billion, reflecting 8 percent growth at the midpoint versus 2020
  

• Maintains adjusted EBITDA forecast in the range of $1.29 to $1.35 billion, reflecting 6 percent growth at the midpoint versus 2020
  

• Raises 2021 adjusted earnings forecast in the range of $6.59 to $6.99 per diluted share, reflecting 10 percent growth at the midpoint versus 2020
  

• Reiterates free cash flow forecast in the range of $480 to $570 million, reflecting a 4 percent decline at the midpoint versus 2020
  Expects to repurchase $350 to $450 million of FMC shares through end of year
  

On November 2, FMC Corporation (NYSE:FMC) reported third quarter 2021 revenue of $1.19 billion, an increase of 10 percent versus third quarter 2020. Revenue increased 9 percent organically. On a GAAP basis, the company reported earnings of $1.22 per diluted share in the third quarter, an increase of 44 percent versus third quarter 2020. Adjusted earnings were $1.43 per diluted share, an increase of 17 percent versus third quarter 2020, and 12 cents above the midpoint of guidance.

Mark Douglas, FMC president and chief executive officer, said, "FMC delivered a strong quarter driven by robust product demand. Our operations and procurement teams overcame supply chain and logistics challenges that have impacted many industries. Adjusted EBITDA momentum not only reflects volume growth, but also our focus on increasing prices, continued cost discipline, and a shift in timing of some cost headwinds. In addition, we are seeing significant contribution to growth this year from new product launches and from FMC's Plant Health business, reflecting the strength of our innovation capabilities and world-class R&D pipeline."

The third quarter revenue growth was driven by 9 percent contribution from volume and a 1 percent FX tailwind. Invoice level prices increased in all regions during the quarter; this was masked by some favorable rebate and other adjustments in the prior-year period that did not repeat. In Asia, revenue increased 20 percent (up 19 percent organically) driven by broad-based volume growth and price increases across nearly all countries. EMEA grew revenue 12 percent (up 10 percent organically) driven by strong demand for FMC herbicides and diamides across the whole region. In Latin America, revenue increased 11 percent (up 9 percent organically) driven by soybean and corn growth in Brazil and Argentina, as well as price increases. In North America, sales decreased 6 percent (down 6 percent organically), reflecting year-over-year impact of a continued shift in volume by geography from the company's global diamide partnerships. Excluding revenue from the global partnerships, the region grew more than 20 percent driven by strong demand for diamides and fall herbicides, as well as price increases. Finally, FMC's Plant Health business had an excellent quarter with 40 percent year-over-year growth led by biologicals.

2021 Outlook²

The company maintains its forecast for full-year 2021 revenue to be in the range of $4.9 billion to $5.1 billion, representing an 8 percent increase at the midpoint versus 2020.  Full-year adjusted EBITDA is expected to be in the range of $1.29 billion to $1.35 billion, representing a 6 percent year-over-year growth at the midpoint. 2021 adjusted earnings is now expected to be in the range of $6.59 to $6.99 per diluted share, up 10 percent at the midpoint, reflecting the impact of share repurchases completed year-to-date.

Full-year earnings growth can be attributed to strong volume growth of higher margin products, the launch of new products including Xyway™ fungicide, Overwatch^® herbicide and Vantacor™ insect control, as well as price increases. Full-year free cash flow is expected to be $480 million to $570 million and the company expects to repurchase $350 million to $450 million of FMC shares in 2021, including the $300 million repurchased through September.

Fourth Quarter Outlook²

Fourth quarter revenue is expected to be in the range of $1.27 billion to $1.47 billion, representing a 19 percent increase at the midpoint compared to fourth quarter 2020 and organic growth of 19 percent. Adjusted EBITDA is forecasted to be in the range of $343 million to $403 million, representing a 29 percent increase at the midpoint versus fourth quarter 2020. FMC expects adjusted earnings per diluted share to be in the range of $1.80 to $2.20 in the fourth quarter, which represents growth of 41 percent at the midpoint versus fourth quarter 2020. The company expects to repurchase $50 million to $150 million of FMC shares in the quarter.

"We are maintaining our full-year guidance and remain confident in our ability to deliver the fourth quarter forecast driven by high margin volume growth and accelerating price increases, despite the volatile supply conditions in crop protection and other industries," said Douglas.

EPS estimates assume 129 million diluted shares for full year and 128 million diluted shares for Q4. Outlook for EPS and weighted average diluted shares outstanding (WADSO) does not include the impact of any share repurchases in Q4 2021

Supplemental Information

The company will post supplemental information on the web at https://investors.fmc.com, including its webcast slides for tomorrow's earnings call, definitions of non-GAAP terms and reconciliations of non-GAAP figures to the nearest available GAAP term.

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

2. Although we provide forecasts for adjusted earnings per share, adjusted EBITDA and free cash flow (non-GAAP financial measures), we 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.
   

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