(FMC, 23.Oct.2023) — FMC Corporation (NYSE:FMC) provided an update on third quarter expectations compared to its previously provided outlook. Revenue in the third quarter is now expected to be $982mn with adjusted EBITDA of $175mn and adjusted earnings per share of $0.44. The revised outlook is mainly driven by substantially lower sales volumes in Latin America, particularly destocking in Brazil and to a lesser degree drought in Argentina. While results for EMEA, North America and Asia were broadly in line with company expectations, destocking behavior continued in those regions as well.
–Third quarter revenue and earnings outlook reduced primarily due to lower volumes in Latin America as destocking was more severe than anticipated
–Results in EMEA, Asia and North America were broadly in line with expectations
–Company initiates an immediate restructuring process in Brazil and launches a broader, more comprehensive process to review and adjust total company cost structure
Based on the current demand environment, the company is revising its fourth quarter and full year outlook.
|FY 2023||Q4 2023|
|Revenue||$4,480mn to $4,720mn||$1,139mn to $1,379mn|
|Adjusted EBITDA||$970mn to $1,030mn||$246mn to $306mn|
“During the third quarter we observed continued channel destocking in all regions; however, the magnitude of the destocking in Brazil was much greater than we had anticipated,” said Mark Douglas, FMC president and chief executive officer. “While application of products by growers remains stable, significant global destocking impacts are expected to persist into next year and we have adjusted our full year outlook accordingly. With destocking conditions not expected to improve in the near-term, we have initiated an immediate restructuring process for our operations in Brazil and have launched a broader, more comprehensive process to review and adjust our total Company cost structure. We will discuss these actions and our 2024 outlook at our Investor Day on November 16th.”
Information in this news release is preliminary and intended to be an outlook update. The Company will provide more detail on topics such as cash flow via its upcoming earnings release. FMC will announce its third quarter 2023 earnings on Monday, 30 October 2023, after the stock market close with a webcast conference call on Tuesday, 31 October 2023, at 9 a.m. ET.