Philadelphia, Pennsylvania, USA
August 2, 2016
Second Quarter 2016 Highlights
- Consolidated revenue of $810 million
- Consolidated GAAP earnings per diluted share of $0.49
- Consolidated adjusted earnings per diluted share of $0.69
- Agricultural Solutions segment earnings of $101 million
- Health and Nutrition segment earnings of $45 million
- Lithium segment earnings of $17 million
- Increasing guidance for 2016 adjusted earnings per diluted share by 5 cents to $2.60 to $2.901
FMC Corporation (NYSE: FMC) today reported second quarter 2016 net income per diluted share of $0.49, as compared to net income per diluted share of $5.52 in the second quarter of 2015. Excluding various restructuring charges, adjusted earnings were $0.69 per diluted share in 2016, compared to the prior-year quarter adjusted earnings of $0.70 per diluted share.
Pierre Brondeau, FMC president, CEO and chairman said: "FMC delivered another strong quarter, reporting adjusted earnings per share above the mid-point of guidance. Ag Solutions continues to realize the benefits of the Cheminova acquisition, reporting segment earnings in line with expectations despite difficult market conditions. Lithium outperformed, more than tripling segment earnings compared to the prior year quarter. Lithium's performance reflects the success of FMC's strategy of converting lithium carbonate into higher value downstream specialty products. Health and Nutrition delivered strong margins and cash flow, but revenue and segment earnings were below expectations, largely due to weakness in Omega-3. Overall, I am very pleased with the execution of our strategy. Based on our performance to date and improved outlook for the year, we are increasing guidance for 2016 adjusted earnings per diluted share by 5 cents to $2.60 to $2.90."
FMC Agricultural Solutions
FMC Agricultural Solutions reported second quarter revenue of $552 million and segment earnings of $101 million. On a pro forma basis, second quarter segment revenue declined 19 percent principally due to lower sales volume, largely driven by product rationalization, and foreign currency headwinds. Segment earnings declined 14 percent compared to pro forma results for second quarter 2015, as the impact of lower sales volumes, less favorable product mix and a stronger U.S. dollar were partially offset by lower operating costs.
For the full-year, segment revenue is expected to be in the range of $2.2 billion to $2.4 billion and segment earnings are expected to be in the range of $380 million to $420 million. Third quarter segment earnings are expected to be in the range of $80 million to $90 million.
FMC Health and Nutrition
FMC Health and Nutrition reported second quarter segment revenue of $195 million and segment earnings of $45 million. Revenue declined 6 percent and segment earnings declined 11 percent compared to the second quarter 2015 largely due to lower volumes and prices in Omega-3.
Segment revenue for the full year is expected to be between $750 and $800 million and 2016 segment earnings are expected to be between $190 and $196 million. For the third quarter, segment earnings are expected to be between $44 and $48 million.
FMC Lithium
FMC Lithium reported second quarter segment revenue of $63 million, an increase of 15 percent from the prior-year quarter. Segment earnings more than tripled to $16.5 million versus the prior-year quarter. Higher sales volumes, higher average prices in all major products, improved mix and lower operating costs all contributed to the increase in segment earnings.
For the full year 2016, segment revenue is expected to be in the range of $245 million to $265 million. 2016 segment earnings are expected to be between $58 and $66 million, $14 million higher than previous guidance (at the mid-point). Segment earnings for the third quarter are expected to be in the range of $13 million to $17 million.
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