FMC Profit Meets Estimate; Cuts Outlook

(RTTNews) - Diversified chemicals maker FMC Corp. (FMC) said Monday after the markets closed that its second quarter profit rose 12.5% from last year, helped by strong performance of its agriculture solutions segment.

The company's quarterly earnings per share, excluding items, came in line with analysts' expectations, but its quarterly revenue fell short of analysts' forecast.

At the same time, the company forecast third quarter profit below analysts' current consensus estimate and lowered its full year earnings outlook.

Pierre Brondeau, FMC president, CEO and chairman, said, "We are making significant progress against our strategic goal of strengthening our core businesses."

FMC shares are currently losing $0..36% in after hours trading after closing the days' regular trading session at $63.58, up 14 cents. The shares trade in a 52-week range of $50.76 to $64.96.

For the second quarter ended June 30, 2013, the company reported net income of $118.0 million or $0.86 per share, compared to $104.9 million or $0.76 per share for the year-ago quarter.

The latest quarter results include charges of $10.9 million or $0.08 per share, compared to charges of $22.0 million or $0.16 per share, in the prior-year quarter.

Excluding items, adjusted earnings from continuing operations for the second quarter were $128.9 million or $0.94 per share, compared to $126.9 million or $0.92 per share in the prior year quarter.

On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.94 per share for the second quarter. Analysts' estimates typically exclude special items.

Revenue for the second quarter rose 6% to $959.4 million from $905.2 million in the same quarter last year. Seven analysts had a consensus revenue estimate of $967.90 million for the second quarter.

Second quarter revenues for the company's Agricultural Solutions segment rose 12% year-over-year to $442.6 million, driven by strong demand in all regions except Europe, Middle East and Africa. The segment's earnings increased 11% to $124.7 million, due to continued North American volume growth with increased demand for pre-emergent herbicides, increased market share in Brazil and benefits from market access initiatives in Asia.

FMC's Health and Nutrition segment revenues for the quarter grew 9% to $189.9 million on higher volumes and contributions from recent acquisitions. Minerals segment segment revenues fell 2% to $244.4 million in the second quarter.

Looking forward, the company forecast third quarter adjusted earnings of $0.75 to $0.85 per share. Analysts currently expect the company to earn $0.94 per share for the second quarter.

The company lowered its full year 2013 adjusted earnings outlook to a range of $3.72 to $3.87 per share from its prior outlook of $3.93 to $4.07 per share to reflect the move of Peroxygens to discontinued operations, as well as uncertainties in the timing of soda ash export pricing recovery.

Analysts currently expect the company to earn $3.99 per share for the full year 2013.

However, the company reaffirmed its $5 billion plus sales and $5.75 to $6.25 adjusted earnings per share targets for 2015.