FMC Updates 4Q:20 Outlook, Highlights Brazil, Argentina

(FMC, 19.Jan.2021) — FMC Corporation it is reducing its fourth quarter 2020 outlook. The company is proceeding through its quarterly close, and based on preliminary results expects fourth quarter revenue of approximately $1.15bn as compared with prior guidance of $1.23bn to $1.29bn, and fourth quarter adjusted EBITDA in the range of $285mn to $295mn as compared with prior guidance of $335mn to $355mn. Full-year free cash flow guidance of $475mn to $525mn in 2020 remains unchanged. The company expects 2021 outlook at or somewhat above long-range plan targets of 5% to 7% revenue growth and 7% to 9% adjusted EBITDA growth. 

Highlights:

— North America business impacted by supply chain disruptions in December.

— Latin America business impacted by severe drought in Brazil and import challenges in Argentina.

— Impacts partially offset by strong sales in Europe and Asia.

— Full-year free cash flow guidance (1) for 2020 ($475mn to $525mn) unchanged.

— Expect solid 2020 full-year results, with approximately 7% organic (2) revenue growth and 2% to 3% adjusted EBITDA1 growth, despite approximately $250mn FX headwinds.

— Expect 2021 outlook at or somewhat above long-range plan targets of 5% to 7% revenue growth and 7% to 9% adjusted EBITDA growth.

In North America, sales were impacted due to supply chain disruptions, including COVID-related factors associated with logistics and a tolling partner. These events occurred during the traditionally busy month of December, resulting in some products not being delivered to customers by quarter end. The company expects a large proportion of those sales will be recognized in first quarter 2021.

In Brazil, sales were lower than forecasted due to severe drought that persisted throughout the fourth quarter, resulting in lower demand. The company expects these conditions to continue through first quarter 2021.

In Argentina, substantial product inventory located in bonded warehouses was not released by customs officials in a timely manner. This inventory is expected to be released, and sales completed, in first quarter 2021.

“Despite the global pandemic and these near-term operational challenges, we delivered a solid 2020 and remain highly confident in our 2021 outlook and our ability to deliver FMC’s long-range growth plan targets,” said Mark Douglas, FMC president and CEO.

Details will be discussed during FMC’s fourth quarter earnings conference call. FMC will release its fourth quarter 2020 earnings and 2021 outlook on 9 February 2021, after the stock market close via PR Newswire and on the company’s website at: https://investors.fmc.com. The company will host a webcast conference call on Wednesday, 10 February, at 9:00 a.m. ET, that is open to the public via internet broadcast and telephone.

Financial Notes:

1. Although we provide forecasts for adjusted earnings per share, adjusted EBITDA, and free cash flow (non-GAAP financial measures), we are not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for us to forecast. Such elements include, but are not limited to, restructuring, acquisition charges, and discontinued operations. As a result, no GAAP outlook is provided.

2. Organic revenue growth (non-GAAP) excludes the impact of foreign currency changes.

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