FMC Corporation Reports Full Year 2018 and Fourth Quarter Financial Results

Chemical maker FMC Corporation reported fourth quarter financial results as well as full year financial results recently.

The company said it saw profits hit $32.4 million or 24 cents per share in fourth-quarter 2018. This is compared to $530.1 million or $3.94 per share earned a year ago.  Adjusted earnings at $1.69 per share in the quarter was an increase of 54% year over year.  Revenue saw a growth of 24% year over year to $1,219.2 million.

CEO Pierre Brondeau said during the company’s earnings call, “2018 was a critical and very successful year for FMC. In Ag Solutions, we delivered tremendous performance in both Q4 and the full year that significantly outpaced our peers and the broader ag market. Our sales team aggressively pursued revenue synergies made possible by the limited cash overlap and the strength of a broader product portfolio.”

“They delivered 11% pro forma sales growth for the full year posting gains in all geographies. Our entire organization executed well against our growth goal. We achieved this performance in 2018 while taking great strides toward integrating the largest acquisition in FMC’s history separating Lithium business which included [indiscernible] IPO and advancing the implementation of the SAP S/4HANA platform. We also reduced debt to $500 million and completed a $200 million share repurchase program,” he added.

“FMC reported over $1.2 billion in fourth quarter revenue, including Lithium, which reflects a year-over-year increase of 24% on the reported basis and 17% on a pro forma basis. This increase was driven by strong commercial execution that enabled broad-based growth in every region in Ag Solutions along with 6% sales growth in Lithium. Adjusted EPS came in at $1.69 in the quarter, an increase of 54% year-over-year. This was $0.02 above the high end of our preannouncement from January 31, 2019 and $0.31 above the midpoint of our guidance given on our last earnings call.”

Looking ahead, FMC Corporation has projected full year 2019 adjusted earnings per share of $5.55 to $5.75. This is barring any impact from share buybacks. It is also up 8% at the midpoint compared with recast 2018 earnings. The company has forecast revenues of $4.45-$4.55 billion for the year, up 5% at the midpoint compared with recast 2018 revenues.

Adjusted EBITDA for 2019 is forecast in the range of $1.165-$1.205 billion. This would be a growth of 7% at the midpoint compared with recast 2018 adjusted EBITDA.

For the first quarter, the company has forecast adjusted earnings in the range of $1.58 to $1.68 per share, up 3% at the midpoint compared with recast first-quarter 2018 earnings. Revenue is expected in the range of $1.18-$1.21 billion for the quarter, up 8% at the midpoint versus recast first-quarter 2018 revenues.

Adjusted EBITDA for the quarter is set to be in the range of $320-$340 million, flat year-over-year at the midpoint compared with recast first-quarter 2018 adjusted EBITDA. FMC Corporation also says it plans to repurchase up to $500 million of shares in 2019, including $100 million already purchased this year.