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Jun 30, 2020
FMC Q2 2020 Earnings Report
FMC demonstrated solid financial performance despite global challenges, raising full-year 2020 guidance.
Key Takeaways
FMC Corporation reported a revenue of $1.16 billion for Q2 2020, a decrease of 4% compared to Q2 2019, but an organic sales growth of 3%. The company's GAAP earnings were $1.41 per diluted share, up 7% versus Q2 2019, and adjusted earnings were $1.72 per diluted share, up 4% versus Q2 2019. FMC also raised its full-year 2020 guidance.
Revenue of $1.16 billion, down 4 percent versus Q2 2019, up 3 percent organically.
Consolidated GAAP net income of $185 million, up 5 percent versus Q2 2019.
Adjusted EBITDA of $341 million, up 1 percent versus Q2 2019.
Consolidated GAAP earnings of $1.41 per diluted share, up 7 percent versus Q2 2019.
FMC
FMC
Forward Guidance
FMC is forecasting full-year 2020 revenue to be in the range of $4.68 billion to $4.82 billion, representing an increase of 3 percent at the midpoint versus 2019. Organic growth is expected to be 9 percent. Full-year adjusted EBITDA is now expected to be in the range of $1.265 billion to $1.325 billion, representing 6 percent year-over-year growth at the midpoint. 2020 adjusted earnings are now expected to be in the range of $6.28 to $6.62 per diluted share, representing a year-over-year increase of 6 percent at the midpoint.
Positive Outlook
- Volume in Latin America
- Volume in Asia Pacific
- Pricing
- Continued cost discipline
- Third quarter revenue is expected to be in the range of $1.045 billion to $1.105 billion, representing a 6 percent increase at the midpoint compared to third quarter 2019, and organic growth of 12 percent excluding foreign currency headwinds.
Challenges Ahead
- Continued challenges related to the global pandemic
- Foreign currency headwinds throughout 2020
- Sales in EMEA decreased 13 percent year over year and decreased 10 percent excluding FX, due to poor weather conditions in Northern and Eastern Europe as well as forecasted registration losses and product rationalizations.
- FMC revenue decline was driven by a 7 percent headwind from foreign currencies
- In North America, sales decreased 6 percent year over year, driven primarily by our planned activities to reduce channel inventories of pre-emergent herbicides