Philadelphia, Pennsylvania, USA
February 6, 2017
Fourth Quarter 2016 Highlights
- Consolidated revenue of $866 million, down 4 percent versus Q4 '15
- Consolidated GAAP earnings per diluted share of $0.12
- Consolidated adjusted earnings per diluted share of $0.88, up 14 percent versus Q4 '15
- Agricultural Solutions segment earnings of $127 million, up 25 percent versus Q4 '15
- Health and Nutrition segment earnings of $54 million, up 17 percent versus Q4 '15
- Lithium segment earnings of $21 million, up over 90 percent versus Q4 '15
- 2017 adjusted earnings is expected to be in the range of $3.20 to $3.60 per diluted share1
FMC Corporation (NYSE:FMC) today reported fourth quarter and full year 2016 results. For the year, FMC reported revenue of $3.28 billion, up slightly compared to 2015. The company reported earnings of $209 million, or $1.56 per diluted share. Excluding various restructuring charges, adjusted earnings were $2.82 per diluted share, an increase of 14 percent compared to the prior year.
For the fourth quarter, FMC reported revenue of $866 million, a 4 percent decrease over the same period in 2015. The company reported earnings of $16 million, or $0.12 per diluted share, in the fourth quarter of 2016, as compared to a loss of $1.53 per diluted share in the fourth quarter of 2015. Excluding various restructuring charges, adjusted earnings were $0.88 per diluted share for the fourth quarter of 2016, an increase of 14 percent compared to the prior year quarter.
Pierre Brondeau, FMC president, CEO and chairman said: "FMC delivered another solid quarter, to cap a year of strong quarterly performances. In Ag Solutions, we focused on maintaining price and terms rather than volume, and we rationalized low-margin products to improve the foundations of that business. Despite headwinds from Omega 3, Health and Nutrition delivered another year of strong margins and cash flow. Lithium tripled earnings by executing on its growth strategy and taking advantage of favorable market conditions. The actions we have taken throughout 2016 position FMC to deliver significant earnings growth in 2017."
FMC Agricultural Solutions
FMC Agricultural Solutions reported fourth quarter revenue of $618 million and segment earnings of $127 million. Fourth quarter segment revenue declined 6 percent year-over-year, principally due to lower sales in Latin America and Europe. Segment earnings, however, increased 25 percent compared to the fourth quarter of 2015, driven by our ability to maintain pricing, principally in Latin America, despite the strengthening of the U.S. dollar.
Segment revenue for 2016 was $2.27 billion, a 1 percent increase compared to the prior year, while full-year segment earnings were $400 million, a 10 percent increase compared to the prior year. Segment earnings margin improved 140 basis points to 17.6 percent.
For 2017, full-year segment revenue is expected to be approximately $2.2 billion to $2.4 billion and full-year segment earnings are expected to be in the range of $410 million to $450 million, an increase of 8 percent at the mid-point compared to the prior year. First quarter segment earnings are expected to be in the range of $60 million to $70 million, a decrease of approximately 20 percent at the mid-point compared to the prior year quarter. Earnings growth in 2017 is expected to be driven by lower operating costs and higher volumes, offset partially by unfavorable foreign exchange.
FMC Health and Nutrition
FMC Health and Nutrition reported fourth quarter segment revenue of $177 million and segment earnings of $54 million. Revenue increased 3 percent and segment earnings increased 17 percent compared to the fourth quarter 2015. The earnings increase was largely due to lower manufacturing costs, as expected. Segment revenue for 2016 was $744 million, 5 percent lower than 2015, while full-year segment earnings were $191 million, 2 percent lower than 2015.
Segment revenue for the full year of 2017 is anticipated to be approximately $750 million to $790 million, while full-year segment earnings are expected to be between $190 million and $200 million, an increase of 2 percent at the mid-point compared to the prior year. First quarter segment earnings are expected to be in the range of $45 million to $50 million, roughly flat at the mid-point compared to the prior year quarter. Earnings growth in 2017 is expected to be driven by higher sales and improved mix.
FMC Lithium
FMC Lithium reported fourth quarter segment revenue of $71 million, an increase of 1 percent from the prior-year quarter. Segment earnings increased to $21 million in the quarter versus $11 million in the prior-year quarter. Higher prices contributed the bulk of the increase in segment earnings. Segment revenue for 2016 was $264 million, 11 percent higher than 2015, while full-year segment earnings were $70 million, which was more than triple the segment earnings from 2015.
Segment revenue for the full year of 2017 is anticipated to be approximately $315 million to $355 million, while full-year segment earnings are expected to be between $90 million and $110 million, an increase of over 40 percent at the mid-point compared to the prior year. First quarter segment earnings are expected to be in the range of $18 million to $22 million, an increase of approximately 35 percent at the mid-point compared to the prior year quarter. Earnings growth in 2017 is expected to be driven primarily by volume from our hydroxide expansion and higher prices for our hydroxide products.
2017 Outlook
FMC expects adjusted earnings per share to be in the range of $3.20 to $3.60 for the full year 2017, an increase of 20 percent (at the mid-point) versus 2016 adjusted earnings per share of $2.82.
Topics
Species
