Agri chemicals firm FMC expects restructuring charges of up to $215 mln

Date:02-29-2024

Crop protection product maker FMC said on Tuesday it expects to incur pretax charges in the range of $180 million to $215 million related to its previously announced restructuring plan.

FMC had initiated layoffs in its Brazil business and a global restructuring plan in December after a slump in demand and high inventory levels of crop protection products.

The company said it estimates total severance charges and related benefit costs for actions associated with the plan to be between $85 million and $100 million.

The herbicide maker said the estimates include charges for global involuntary workforce reductions resulting from changes to its operating model. The company had earlier announced plans to lay off 8% of its global workforce.

It also forecast a dour first-quarter profit earlier this month, with analysts flagging drought conditions in Brazil and high channel inventory in India.

FMC said on Tuesday it expects asset write-off charges in the range of $80 to $90 million due to possible relocation of certain manufacturing and other operations.

The agri chemicals firm continues to expect $50 million to $75 million in contributions to its adjusted core profit in 2024 following the restructuring plan.