Philadelphia, Pennsylvania, USA
May 6, 2014
First Quarter 2014 Highlights
- Businesses performed largely as expected with growth in Health and Nutrition and Minerals; Agricultural Solutions impacted unfavorably by weather
- Consolidated revenues up 3 percent to $942 million
- Agricultural Solutions segment earnings down 26 percent
- Health and Nutrition segment earnings up 17 percent
- Minerals segment earnings up 27 percent
- Consolidated adjusted earnings per share down 12 percent to $0.95 per diluted share
- Full-year 2014 outlook reaffirmed for adjusted earnings of $4.35 to $4.55 per diluted share, a 15 percent increase compared to prior year at midpoint of range
FMC Corporation (NYSE: FMC) today reported quarterly revenues of $942 million in the first quarter, a 3 percent increase over the same period in 2013. The company reported net income of $65.6 million, or $0.49 per diluted share, in the first quarter of 2014, compared to net income of $130.9 million, or $0.94 per diluted share, in the first quarter of 2013. First quarter results include charges of $61.3 million after tax, or $0.46 per diluted share, compared to charges of $18.1 million after tax, or $0.14 per diluted share, in the prior-year quarter. Excluding these items in both periods, adjusted earnings were $0.95 per diluted share, a decrease of 12 percent versus the prior-year quarter.
Segment Results and Outlook
FMC Agricultural Solutions
First-quarter segment revenues for FMC Agricultural Solutions were $466.9 million, a decrease of 6 percent versus the prior-year quarter. First-quarter segment earnings were $120.1 million, a 26 percent decrease over the prior-year quarter. In North America, persistent cold weather throughout the quarter delayed demand for pre-emergent products, and in Brazil, dry conditions depressed production in sugarcane. Segment operating margin was lower compared to the prior-year quarter primarily due to unfavorable foreign exchange impacts, continued investment in sales, marketing and technical personnel and weather-related changes in product mix.
For the remainder of the year, multiple factors will contribute to delivering the expected mid-teens percent growth in full-year segment earnings over 2013. A recovery from delayed first quarter sales and a favorable crop mix toward soybeans in North America will drive greater demand for FMC's herbicides compared to the previous planting season. In Latin America, larger cotton and soybean acres and increased sugarcane production in Brazil will contribute to greater growth in the second half of 2014. New product introductions and benefits from market access investments will also contribute to expected growth.
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