Health and Nutrition Boosts FMC Performance
6 Feb 2014 --- FMC Corporation has reported record quarterly revenues of $1.1 billion in the fourth quarter, a 24 percent increase over the same period in 2012. The company reported net income of $27.1 million, or $0.20 per diluted share, in the fourth quarter of 2013, versus net income of $102.2 million, or $0.74 per diluted share, in the fourth quarter of 2012.
Fourth quarter results include charges primarily related to the sale of the Peroxygens business of $114.3 million after tax, or $0.85 per diluted share, compared to charges of $4.4 million after tax, or $0.03 per diluted share, in the prior-year quarter. Excluding these items in both periods, adjusted earnings were $1.05 per diluted share, an increase of 36 percent versus the prior-year quarter. For the full year, revenues grew to $3.9 billion, up 14 percent over 2012. Adjusted full-year earnings per diluted share increased 15 percent to $3.88 versus $3.39 in 2012.
Fourth-quarter segment revenues for FMC Health and Nutrition were $189.8 million, an increase of 13 percent versus the prior-year quarter. Segment earnings of $40.4 million were also 13 percent higher than the prior-year quarter despite operational disruptions related to two natural disasters near the company's Cebu facility in the Philippines. Business growth was primarily driven by higher volumes of colloidal microcrystalline cellulose and pharmaceutical binders. Earnings growth was lower than previous guidance due to a delayed startup of the Seals Sands omega-3 production facility in the United Kingdom. The plant is currently operating as planned, and the company expects final testing and regulatory approvals will be completed in February 2014 with initial sales expected in the first quarter.
Full-year segment revenues of $762.0 million and segment earnings of $169.5 million increased year-over-year by 12 percent and 5 percent, respectively. Strength in food and pharmaceutical product categories and growth from newly acquired businesses were partially offset by acquisition-related expenses, investments in Manufacturing Excellence and raw material cost increases.
FMC expects growth in 2014 from food and pharmaceutical ingredients driven by its texturants, binders and natural colors product lines, principally in emerging markets. Organic growth is expected to be complemented by new omega-3 sales primarily into pharmaceutical and nutraceutical end-markets. Full-year segment earnings in 2014 are anticipated to increase mid-teens percent versus 2013.
Pierre Brondeau, FMC president, CEO and chairman, said: "We ended 2013 with strong performance in our Agricultural Solutions and Health and Nutrition businesses where new product introductions and strong customer relationships allowed us to grow and take advantage of good market conditions. In the Minerals segment, our operational issues in the Lithium business were resolved in 2013 and our manufacturing expansion was completed. We also saw improved export pricing and increased volumes in soda ash.
"We are entering 2014 with strong portfolios and market positions in Agricultural Solutions and Health and Nutrition. Our Lithium business is poised for growth, and we anticipate considerable improvements in its profitability. Despite our prudent approach, we remain optimistic that the pricing for export soda ash is firming up, even though we are not forecasting beyond prices already under short- and long-term contracts. Our Manufacturing Excellence efforts across the company continue to yield additional volume contributions and cost savings. We believe FMC's portfolio is aligned for success in 2014 and well positioned for 2015."
