Third Quarter 2017 Highlights
- Consolidated revenue of $646 million, up 3 percent versus Q3 ’16
- Consolidated GAAP earnings of $0.41 per diluted share, down 31 percent versus Q3 ’16
- Consolidated adjusted earnings per diluted share of $0.70, up 59 percent versus Q3 ’16
- Agricultural Solutions segment earnings of $118 million, up 31 percent versus Q3 ’16
- Lithium segment earnings of $37 million, up 110 percent versus Q3 ’16
- Raising guidance range for 2017 adjusted earnings per diluted share to $2.59 to $2.69, including two months contribution from the recent acquisition
FMC Corporation today reported third quarter revenue of $646 million, which is an increase of 3 percent year-over-year. On a GAAP basis, the company reported earnings of $0.41 per diluted share in the third quarter, or $55 million, which is 31 percent lower than the GAAP earnings of $0.59 per diluted share, or $80 million, in the third quarter of 2016. Third quarter 2017 adjusted earnings per diluted share were $0.70, which is 59 percent higher than the prior year quarter.
Pierre Brondeau, FMC president, CEO and chairman says: “FMC delivered a very strong quarter. In Ag Solutions, we are especially pleased with the significant volume growth in Latin America and North America. In Lithium, we also saw strong volume and revenue growth, driven by our lithium hydroxide expansion and robust pricing across our product categories.”
FMC Agricultural Solutions
FMC Agricultural Solutions reported third quarter revenue of $552 million and segment earnings of $118 million, a record third quarter earnings performance for the segment. Third quarter segment revenue grew 6 percent year-over-year, excluding India. The increase was driven by strong volume growth in the Americas, offset by revenue declines in Asia and Europe. The company took actions in India to prepare for the integration of the different market access channels between FMC and the acquired business, which reduced overall Agricultural Solutions revenue by 7 percent. In total, third quarter revenue was down 1 percent year over year. Segment earnings increased 31 percent compared to the third quarter of 2016, with volume gains and lower costs having the largest impact.
Agricultural Solutions full-year revenue is forecasted to be in the range of $2.5 and $2.6 billion and segment earnings are expected to be in a range of $465 to $485 million. The legacy Agricultural Solutions business is expected to contribute $2.3 billion to $2.4 billion of revenue and $425 to $445 million of earnings in 2017; this legacy contribution to segment earnings guidance represents 9 percent year-over-year growth and a $5 million increase versus prior guidance, at the mid-point. Fourth quarter segment earnings are forecasted to be in the range of $168 million to $188 million.
FMC Lithium reported third quarter segment revenue of $94 million, an increase of 28 percent sequentially and an increase of 35 percent versus the prior-year quarter. Segment earnings increased over 50 percent sequentially and more than doubled year-over-year to $37 million in the quarter. Higher volume from FMC’s new hydroxide operations in China and higher year-over-year prices were the main contributors to growth.
The outlook for Lithium segment revenue for the full year of 2017 remains in the range of $340 million to $360 million, an increase of 33 percent at the mid-point compared to 2016, while the outlook for full-year segment earnings has been raised to a range of $124 million to $128 million. This revised forecast for full-year segment earnings represents an increase of nearly 80 percent at the mid-point compared to the prior year and a $6 million increase versus prior guidance. Fourth quarter segment earnings are expected to be in the range of $41 million to $45 million, which, at the mid-point, represents a doubling of earnings compared to the prior year quarter.
FMC expects adjusted earnings per share to be in the range of $2.59 to $2.69 for the full year 2017, including the impact of two months contribution from the DuPont Crop Protection acquisition.1,2
Brondeau adds, “With Ag Solutions earnings up over 30 percent in the third quarter, and fourth quarter legacy Ag Solutions expected to post a year-over-year increase of 8 percent, we believe it is the perfect time to integrate the DuPont business, as our legacy business is performing very well. Conditions in the agriculture industry remain difficult, but we believe they have now stabilized. Now is a good time to be increasing our global footprint in the crop protection market. We remain equally excited about the current performance of our Lithium business, and believe the next few years offer compelling opportunities to invest in continued growth, while strengthening our leading position as a supplier into the electric vehicle market.”