FMC cuts sales and profit guidance ahead of 3Q earnings
Published: 11:16 23 Oct 2023 EDT
FMC Corp (NYSE:FMC) has lowered its third quarter, fourth quarter and fiscal 2023 revenue and profit guidance on lower sales volumes in Latin America during the current quarter, sending its stock price tumbling in early trade Monday.
Shares of the agricultural sciences company fell 15.9% to US$56.31 on the news.
The company now expects third quarter revenue of $982 million and adjusted earnings per share (EPS) of $0.44, compared to its prior expectation of revenue in the range of $1.19 billion to $1.27 billion and adjusted EPS in the range of $0.90 to $1.32.
For the fourth quarter, it now expects revenue of $1.14 billion to $1.38 billion, down from its prior guidance of $1.66 billion to $1.78 billion, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $246 million to $306 million, down from its earlier forecast of $511 million to $561 million.
“Based on the current demand environment,” the company said it is also lowering its revenue forecast for fiscal 2023 from a range of $5.2 billion to $5.4 billion to a range of $4.48 billion to $4.72 billion.
Adjusted EBITDA is expected to be in the range of $970 million to $1.03 billion, down from its earlier expectation of $1.3 billion to $1.4 billion.
FMC CEO Mark Douglas said the company observed continued channel destocking in all regions in 3Q, however, the magnitude of the destocking in Brazil was much greater than it had anticipated.
"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,” Douglas said.
“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.”
Additional details about the company’s restructuring and its 2024 outlook will be provided at its Investor Day on November 16, the CEO noted.
FMC's 3Q results will be announced on Monday, October 30, 2023, after the market close.
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