FMC Reports 12% Rise in Net Income in Q1

Revenue in Agricultural Products of $304.6 million increased 17 percent versus the prior-year quarter led by sales gains in Latin America, particularly in Brazil due to improved market conditions in several key crops, including sugarcane and cotton, and growth from new and recently introduced products.

5 May 2010 --- FMC Corporation has reported net income of $77.4 million, or $1.06 per diluted share, in the first quarter of 2010, versus net income of $69.1 million, or $0.94 per diluted share, in the first quarter of 2009. Net income in the current quarter included restructuring and other income and charges of $21.0 million after-tax, or charges of $0.28 per diluted share, versus restructuring and other income and charges of $20.2 million after-tax, or charges of $0.28 per diluted share, in the prior-year quarter. Excluding these items in both periods, the company earned $1.34 per diluted share in the current quarter, an increase of 10 percent versus $1.22 per diluted share in the prior-year quarter. First quarter revenue of $756.5 million was 10 percent higher than $690.5 million in the prior year.

Pierre Brondeau, FMC president and chief executive officer, said, "The year is off to a good start with our first quarter performance. We realized continued strong sales growth in Agricultural Products and Specialty Chemicals and demand recovery in Industrial Chemicals. Agricultural Products' sales growth was driven by gains in Latin America, Europe and Asia. Specialty Chemicals' sales increased as the result of strong commercial performance in BioPolymer and volume growth in lithium. Industrial Chemicals' sales benefited from volume growth across most businesses."

Revenue in Agricultural Products of $304.6 million increased 17 percent versus the prior-year quarter led by sales gains in Latin America, particularly in Brazil due to improved market conditions in several key crops, including sugarcane and cotton, and growth from new and recently introduced products. Sales in North America declined modestly due to less favorable weather conditions. In Europe, sales increased due primarily to a shift in sales from the second quarter. Sales in Asia improved reflecting growth in several key countries. Segment earnings of $92.8 million were level to a year ago, as sales growth was offset by one-time distribution costs, the absence of the prior-year benefit of lower cost inventory, less favorable mix and increased spending on growth initiatives.

Revenue in Specialty Chemicals was $202.6 million, up 16 percent versus the year-ago quarter driven primarily by volume growth across food, pharmaceutical and lithium businesses. Segment earnings of $40.8 million were 7 percent higher than the year-ago quarter, as sales growth and productivity gains were partially offset by the absence of the prior-year benefit of lower cost inventory.

Revenue in Industrial Chemicals of $250.1 million declined 2 percent from the prior-year quarter as volume gains in soda ash, particularly in export markets, peroxygens and phosphates were more than offset by reduced phosphates, hydrogen peroxide and soda ash export selling prices and lower electricity sales stemming from the sale of a Spanish cogeneration facility in 2009. Segment earnings of $34.5 million were 51 percent higher than the year-ago quarter as a result of the broad-based demand recovery, the absence of higher cost inventory in the prior year and the benefit of a one-time sales contract settlement.

Corporate expense was $12.1 million, versus $11.3 million in the prior-year quarter. Interest expense, net, was $10.0 million, as compared to $7.0 million in the year-ago quarter. On March 31, 2010, gross consolidated debt was $699.9 million, and debt, net of cash, was $613.2 million. For the quarter, depreciation and amortization was $33.9 million and capital expenditures were $31.0 million.

Regarding the outlook for 2010, Brondeau said, "For the full year 2010, we have raised our outlook for earnings before restructuring and other income and charges to $4.45 to $4.80 per diluted share. We anticipate delivering another year of strong performance and are pleased with the progress of each of our businesses. We expect Agricultural Products to deliver its eighth straight year of record earnings while increasing investment in innovation and continuing to deliver high profit margins. In Specialty Chemicals, we expect BioPolymer to achieve its sixth straight year of record earnings while lithium realizes significant earnings improvement primarily through volume-driven sales growth. In Industrial Chemicals, we expect to record the second highest profit in the past 10 years on the strength of a significant volume rebound from the prior year.

"For the second quarter of 2010, we expect earnings before restructuring and other income and charges of $1.15 to $1.25 per diluted share. In Agricultural Products, we look for earnings to be 15 to 20 percent lower versus the year-ago quarter, driven by a shift in sales in Europe, the absence of the prior-year benefit of lower cost inventory and increased spending on growth initiatives. In Specialty Chemicals, we expect earnings to increase 25 to 30 percent compared to the prior-year quarter, driven by continued strong commercial performance in BioPolymer, significant demand recovery in lithium primaries and higher selling prices in lithium specialties. In Industrial Chemicals, earnings are expected to increase 75 to 85 percent versus the year-ago quarter, as volume growth across the segment and the absence of higher cost inventory in the prior year are only partially offset by reduced selling prices."