FMC agrochem sales surged 22% in Q4

Date:02-14-2012

Robust sales growth in Latin America boosted FMC’s agrochemical sales by 22% to $409.2 million in the fourth quarter of 2011. The sales gains in Latin America were driven by strong demand for productivity enhancing inputs in Brazil, as well as new product introductions and sales from new joint venture in Argentina. FMC entered into a joint venture agreement to form a new Argentine agrochemical distribution company named Ruralco Soluciones SA last July (AgroNews 2011-07-29).

 In Europe, Middle East and Africa (EMEA) region, sales increased significantly based on the strength of insecticide and herbicide sales in Europe. In North America, sales were lower than a year ago due to a shift in the timing of fall application sales. In Asia, sales were essentially level to a year ago as higher insecticide volumes in China, Indonesia and Korea were offset by lower herbicide volumes, as less favorable weather conditions impacted the region's wheat crops. Segment earnings of $72.6 million increased 17 percent versus a year ago driven by the higher sales, partially offset by higher raw material and manufacturing costs, as well as increased spending on targeted organic and external growth initiatives.

Full-year sales rose by 17.9% to $ 1,464.5 million, with income from continuing operations before income taxes increasing by 12.5% to $ 348.3 million. The company noted that its agrochemical business has achieved its eighth consecutive year of record earnings.

FMC’s agricultural products sales results ($ million)
Year ended Dec. 31st	Q3 2011	Q3 2010	%change	2011	2010	%change
Sales	409.2	334.5	+22.3	1,464.5	1,241.8	+17.9
Income from continuing operations before income taxes	72.6	62.0	+17.1	348.3	309.5	+12.5

Outlook

FMC expects to achieve its ninth straight year of record earnings, up approximately 10 percent versus the prior year due to expected strong market conditions and growth in new and recently introduced products while increasing spending on growth initiatives.

Pierre Brondeau, FMC president, chief executive officer and chairman, concluded, " Agricultural Products' segment earnings are expected to be up approximately 20 percent, reflecting robust early season demand in North America coupled with the expected shift of some sales in the region from the second quarter, a strong finish to the crop season in Brazil and volume gains in Asia and EMEA.”