FMC Reports Strong Start in Q1

First quarter revenue of $940.7 million was 18 percent higher than $795.0 million in the prior year.

1 May 2012 --- FMC Corporation reported net income of $119.1 million, in the first quarter of 2012, versus net income of $94.0 million for Q1 2011.

First quarter revenue of $940.7 million was 18 percent higher than $795.0 million in the prior year.

Pierre Brondeau, FMC president, chief executive officer and chairman, said, "Our first quarter 2012 results provided a very strong start to what we expect will be another record year for FMC. Agricultural Products delivered robust performance driven by broad-based growth in Latin America, North America and Asia."

The company said that revenue in Agricultural Products of $454.2 million increased 32 percent versus the prior-year quarter as sales gains were achieved in all regions. In North America, sales increased significantly driven by strong demand for pre-emergent herbicides, growth from new products and the shift of some sales from the second quarter reflecting an early start to the 2012 season due to favorable weather conditions and high crop prices.

In Latin America, sales also increased significantly, driven by a strong finish to the crop season, particularly in sugarcane and cotton segments, and sales from their new market access joint venture in Argentina. In Asia, sales gains reflected continued strong demand across the region and growth from new products. And in Europe, sales increased driven by volume gains in herbicides and fungicides. Segment earnings of $129.7 million increased 29 percent versus the year-ago quarter driven by the sales growth, partially offset by higher spending on targeted growth initiatives.

Regarding the outlook for 2012, Brondeau said, "Our Agricultural Products segment expects to achieve its ninth straight year of record earnings, up 10-15 percent reflecting increased volumes in all regions, particularly Latin America, North America and Asia, due to strong market conditions and growth from new and acquired products.  Our Specialty Chemicals segment expects to achieve its seventh straight year of record earnings, led by the eighth straight year of record earnings in BioPolymer.

"Segment earnings are expected to be up approximately 5 percent reflecting higher selling prices across the segment and volume growth in BioPolymer and lithium primaries, partially offset by higher weather-related and capacity expansion costs in the first half of the year in lithium, higher raw material costs and increased spending on targeted growth initiatives in BioPolymer.  And in our Industrial Chemicals segment, we expect earnings to be up approximately 20 percent driven by higher selling prices and volume growth in soda ash and specialty peroxygens, augmented by the continued mix shift toward specialty peroxygens. Across our company, we are directly seeing the benefits of our organic growth initiatives and the accretive impacts of the external growth initiatives completed last year."

Brondeau concluded, "For the second quarter of 2012, we expect adjusted earnings of $1.65 to $1.85 per diluted share, a 14 percent increase at the midpoint of this range.  In Agricultural Products, we expect segment earnings to be up approximately 5 percent reflecting growth in all regions partially offset by a shift in some sales in North America to the first quarter and higher spending on targeted growth initiatives.”