FMC Agricultural Solutions sales increased 40% in Q4 2017
Date:02-15-2018
FMC Agricultural Solutions reported fourth quarter revenue of $866 million, an increase of 40 percent year-over-year. FMC's legacy Agricultural Solutions grew 9 percent in the quarter, driven by double-digit revenue growth in North America, Asia and Europe. The remainder of the revenue growth, or $193 million, was attributable to FMC's recent acquisition. Segment earnings of $189 million increased 48 percent year-over-year and were above the top end of our guidance range.
Segment revenue for 2017 was approximately $2.5 billion, an 11 percent increase compared to the prior year. FMC's legacy Agricultural Solutions revenue increased 3 percent year-over-year. Full-year segment earnings were $486 million, a 21 percent increase compared to the prior year, and segment earnings margin improved 160 basis points to 19.2 percent.
Agricultural Solutions full-year revenue for 2018 is forecasted to be in the range of $3.95 billion to $4.15 billion. The legacy FMC Agricultural Solutions business is expected to increase revenue by 2 to 4 percent, and the acquired business is expected to grow by 6 to 10 percent, which implies underlying growth of approximately 5 percent year-over-year for the combined business. Full-year segment earnings before interest, tax, depreciation and amortization (EBITDA) are expected to be in the range of $1.05 billion to $1.15 billion. First quarter segment EBITDA is forecasted to be in the range of $290 million to $320 million.2