FMC’s agrochemical sales up 24% in Q3 of 2011

Date:11-02-2011


Sales gains were achieved in all regions boosted FMC’s agricultural products’ revenue by 24% to $382.1 million in the third quarter of 2011. Earnings increased 7.7% to $80.9 million, driven by the broad-based sales growth, partially offset by higher raw material costs, less favorable product and geographic mix and increased spending on focused growth initiatives. In addition, earnings were unfavorably impacted by a currency-related adjustment due to the rapid devaluation of the Brazilian Real at the very end of the quarter. Sales for the first nine months of the year rose by 16.3% to $1,055 million, and earnings were up by 11.4% to $275.7 million.

The highest growth was realized in Latin America, particularly Brazil, driven by continued strong market conditions in key crops such as sugarcane, cotton and soybeans. In Asia, sales were also up significantly, as a result of newly-launched products, market access initiatives and favorable market conditions in most key countries, including India, Pakistan, China and Thailand. In North America, higher insecticide volumes drove the sales gain. In Europe, the sales increase was driven by strong herbicide volumes.

FMC’s agricultural products sales results ($ million)
Q3 ended Sept. 30th	Q3 2011	Q3 2010	%change	Nine months of 2011	Nine months of 2010	%change
Sales	382.1	308.9	+23.7	1,055.3	907.3	+16.3
Income from continuing operations before income taxes	80.9	75.1	+7.7	275.7	247.5	+11.4

Outlook

FMC expects earnings increase in the low-teens led by growth in Latin America, partially offset by increased spending on targeted growth initiatives and higher raw material costs. Agricultural products are expected to deliver its eighth consecutive year of record earnings, up approximately 10 percent.

"Consistent with our Vision 2015 objectives, we are making focused investments that raise our growth trajectory. In Agricultural Products, we established Ruralco Soluciones, a joint venture in Argentina to directly access the country's large and growing agrochemicals market and formed collaborations with Chr. Hansen and Marrone Bio Innovations in agricultural biologicals.” said Pierre Brondeau, FMC president, chief executive officer and chairman.