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Jun 30, 2023
FMC Q2 2023 Earnings Report
FMC reported a significant volume decline due to inventory reductions, with revenue down 30% and adjusted EPS down 74%.
Key Takeaways
FMC Corporation's second quarter 2023 results were impacted by abrupt inventory reductions by growers and the distribution channel, leading to a significant decline in revenue and earnings despite steady on-the-ground consumption. The company delivered results in line with recently adjusted guidance expectations.
Revenue of $1.01 billion, down 30 percent versus Q2 2022 and down 28 percent organically.
Consolidated GAAP net income of $32.4 million, down 75 percent versus Q2 2022.
Adjusted EBITDA of $187.6 million, down 48 percent versus Q2 2022.
Adjusted earnings per diluted share of $0.50, down 74 percent versus Q2 2022.
Forward Guidance
FMC is forecasting full-year 2023 revenue to be in the range of $5.20 billion to $5.40 billion, full-year adjusted EBITDA is expected to be in the range of $1.30 billion to $1.40 billion and the forecast for the 2023 adjusted earnings range is lowered to $5.86 to $6.80 per diluted share.
Positive Outlook
- Forecasted input cost tailwinds
- Operating expense discipline
- Anticipated growth of new products
- Projected pricing gains
- Expect to grow adjusted EBITDA in the second half due to lower costs, price increases and improved mix from new products as demand for our innovative portfolio remains strong
Challenges Ahead
- The crop protection market is in the midst of a global resetting of inventory levels.
- We anticipate volume pressure at the start of the second half and have adjusted our outlook accordingly.
- Lowers adjusted earnings per diluted share outlook to $5.86 to $6.80, reflecting 15 percent decrease at the midpoint versus 2022
Historical Earnings Impact
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Avg. Return Before/After Earnings
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