FULL YEAR: FMC'S REVENUES UP 14%; EARNINGS UP 15%
Feb. 7, 2014
Source: FMC news release
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Fourth Quarter 2013 Highlights
• Consolidated revenues up 24 percent to $1.1 billion
• Agricultural Solutions segment earnings up 24 percent
• Health and Nutrition segment earnings up 13 percent
• Minerals segment earnings down 18 percent
• Consolidated adjusted earnings per share up 36 percent to $1.05 per diluted share
Full Year 2013 Highlights
• Consolidated revenues up 14 percent to $3.9 billion
• Agricultural Solutions segment earnings up 19 percent
• Health and Nutrition segment earnings up 5 percent
• Minerals segment earnings down 25 percent
• Consolidated adjusted earnings per share up 15 percent to $3.88 per diluted share
• Segment earnings in Agricultural Solutions expected to increase mid-teens percent over 2013 driven by favorable market conditions, continued market share gains and new product introductions
• Segment earnings in Health and Nutrition anticipated to increase mid-teens percent over prior year due to contributions from acquired businesses and organic growth
• Segment earnings in Minerals expected to increase high-teens percent as a result of improved operating performance from both Lithium and Alkali Chemicals
• Full-year 2014 outlook 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 record quarterly revenues of $1.1 billion in the fourth quarter, a 24 percent increase over the same period in 2012.
The company reported net income of $27.1 million, or $0.20 per diluted share, in the fourth quarter of 2013, versus net income of $102.2 million, or $0.74 per diluted share, in the fourth quarter of 2012. Fourth quarter results include charges primarily related to the sale of the Peroxygens business of $114.3 million after tax, or $0.85 per diluted share, compared to charges of $4.4 million after tax, or $0.03 per diluted share, in the prior-year quarter. Excluding these items in both periods, adjusted earnings were $1.05 per diluted share, an increase of 36 percent versus the prior-year quarter.
For the full year, revenues grew to $3.9 billion, up 14 percent over 2012. Adjusted full-year earnings per diluted share increased 15 percent to $3.88 versus $3.39 in 2012.
Segment Results and Outlook
FMC Agricultural Solutions
Fourth-quarter segment revenues for FMC Agricultural Solutions were $677.7 million, an increase of 38 percent versus the prior-year quarter. Fourth-quarter segment earnings were $136.8 million, a 24 percent increase over the prior-year quarter.
Key performance drivers were continued market penetration in Brazilian soybean applications, new product introductions and strong demand due to increased cotton acreage. In addition, early season demand in North America drove increased sales volumes for pre-emergent herbicides and insecticides. Segment operating margin was lower compared to the prior-year quarter primarily due to changes in product mix.
For the full year, segment sales of $2.1 billion and operating earnings of $539 million represent year-over-year growth of 22 percent and 19 percent, respectively. FMC Agricultural Solutions continues to grow at a pace faster than the market, while delivering operating margins of 25 percent.
The company expects the above-market rate growth to continue into 2014, driven by new and recently introduced products. FMC anticipates volume growth globally as increased focus on key crops will be complemented by acreage expansion in Latin America.
Additionally, increasing demand for resistance management products in North America and continued focus on delivering innovative solutions globally will drive volume gains. The company anticipates full-year segment earnings momentum to continue in 2014 with earnings up mid-teens percent.