FMC sales up 4% in Q3 2014

Third-quarter segment revenue for FMC Agricultural Solutions was $548.8 million, an increase of 4 percent versus the prior-year quarter. Third-quarter segment earnings were $116.7 million, a 2 percent increase over the prior-year quarter. In the quarter, year-on-year revenue gains were primarily driven by Latin America, with increased demand for herbicides to control glyphosate-resistant weeds and continued new product penetration into soybeans and cotton. These gains were partially offset by weaker than normal pest pressures in the United States that reduced insecticide demand and by continued weak demand from sugarcane growers in Brazil, as prolonged drought conditions continue to reduce the rate of replanting.

FMC’s Agricultural Solutions Sales results ($ million)
Q3 ended Sep. 30	Q3 2014	Q3 2013	Change %	Nine-month 2014	Nine-month 2013	Change %
Sales	548.8	530.2	+3.5	1,546.9	1,468.0	+5.4
Operating profit	116.7	114.2	+2.2	367.5	402.2	-8.6

 

 

"So far, 2014 has been an unusual year for the agricultural segment. The first half was characterized by prolonged cold weather in North America that led to delayed plantings and lower pest pressures, which together impacted crop protection purchases by farmers. This was followed by favorable North American growing conditions for corn and soybeans and continued low pest pressures, which are also impacting crop protection purchases and leading to record yields. Consequently, we saw commodity prices falling rapidly, creating greater uncertainty around farmer planting intentions in Brazil today and for North America in 2015. Despite the lower predictability this brings to our business, we expect to further penetrate the markets in Argentina, Mexico and Brazil, and expect strong demand for our North American pre-emergent herbicides. “ said Pierre Brondeau, FMC president, CEO and chairman.

 

Outlook
 

For the fourth quarter, segment earnings are expected to be flat to up low-single digit percent over 2013, driven by continued market penetration across Latin America, new product introductions, and demand for pre-emergent herbicides ahead of the 2015 North American growing season.