FMC plunges as revenue forecasts slashed
Published: 09:27 11 Jul 2023 EDT
FMC Corporation has slashed its revenue outlook due to “abrupt and unprecedented” reductions in channel inventory.
The global agricultural chemical company said it now expects second-quarter revenue between $1 billion to $1.03 billion, while its adjusted EBITDA is expected to be in the range of $185 million to $190 million.
FMC stated that the revised guidance is a result of much lower volumes than anticipated. This decline in volumes was caused by a sudden and significant decrease in inventory by channel partners. The company became aware of this situation towards the end of May, and it persisted throughout the quarter in North America, Latin America, and EMEA.
FMC is now expecting to see full-year revenue between $5.2 billion to $5.4 billion and adjusted EBITDA between $1.3 billion to $1.4 billion.
Shares of FMC plunged 11% on Monday afternoon and were sitting around US$92.63 ahead of Tuesday’s open.
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