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Mar 31, 2020
FMC Q1 2020 Earnings Report
FMC reported strong first quarter earnings driven by organic growth.
Key Takeaways
FMC Corporation reported a 5% increase in revenue to $1.25 billion for Q1 2020 compared to Q1 2019, with organic revenue growth of 9%. Adjusted earnings per diluted share increased by 7% to $1.84. The company forecasts solid full-year revenue performance driven by strong organic growth.
Revenue of $1.25 billion, up 5 percent versus Q1 2019 and 9 percent organically.
Consolidated GAAP net income of $206 million, down 5 percent versus Q1 2019.
Adjusted EBITDA of $357 million, up 4 percent versus Q1 2019.
Consolidated adjusted earnings per diluted share of $1.84, up 7 percent versus Q1 2019.
FMC
FMC
FMC Revenue by Geographic Location
Revenue by Geographic Location
North America Revenue
CapyFin.comLatin America Revenue
CapyFin.comAsia Revenue
CapyFin.comEMEA Revenue
CapyFin.com Forward Guidance
FMC full-year 2020 revenue is now forecasted to be in the range of $4.65 billion to $4.85 billion, representing an increase of 3 percent at the midpoint versus 2019. Excluding the impact of foreign currencies, organic growth is expected to be 8 percent. Full-year adjusted EBITDA is now expected to be in the range of $1.23 billion to $1.34 billion, representing 5 percent year-over-year growth at the midpoint. 2020 adjusted earnings are now expected to be in the range of $6.05 to $6.70 per diluted share, representing an increase of 5 percent year over year at the midpoint.
Positive Outlook
- Solid underlying demand is expected through the end of the year.
- Organic growth is expected to be 8 percent.
- Adjusted EBITDA is expected to grow by 5 percent year-over-year at the midpoint.
- Adjusted earnings are expected to increase by 5 percent year over year at the midpoint.
- Company will maintain regular quarterly dividend payments.
Challenges Ahead
- Revenue range is down due to currency headwinds and ongoing global pandemic risks.
- COVID-related and currency headwinds could reduce EBITDA by a range of $0 to $70 million.
- Company is suspending share repurchases until the impact of the global pandemic is better understood.
- Second quarter will present the most challenging and uncertain conditions related to COVID-19 and currencies.
- FX will be a strong headwind at a time of year when price increases are the most difficult to implement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income