FMC Corporation reports strong growth in third quarter, confirms full-year outlook adjusted for expected sale of GSS business
FMC reported strong Q3 2024 results with revenue of $1.07 billion, up 9% from Q3 2023 and 12% organically. The company posted consolidated GAAP net income of $66 million ($0.52 per share), compared to a net loss in Q3 2023. Adjusted EBITDA reached $201 million, up 15%. Volume growth of 17% offset a 5% price decline and 3% FX headwind.
The company updated its full-year 2024 outlook, expecting revenue of $4.33-4.44 billion (2% decline), adjusted EBITDA of $885-915 million (8% decline), and adjusted EPS of $3.16-3.52 (12% decrease), accounting for the expected sale of its GSS business.
FMC ha riportato risultati solidi per il terzo trimestre del 2024 con un fatturato di 1,07 miliardi di dollari, in aumento del 9% rispetto al terzo trimestre del 2023 e del 12% in modo organico. L'azienda ha registrato un utile netto consolidato GAAP di 66 milioni di dollari (0,52 dollari per azione), rispetto a una perdita netta nel terzo trimestre del 2023. L'EBITDA rettificato ha raggiunto 201 milioni di dollari, in aumento del 15%. La crescita del volume del 17% ha compensato un calo dei prezzi del 5% e una pressione della valuta estera del 3%.
L'azienda ha aggiornato le sue previsioni per l'intero anno 2024, aspettandosi un fatturato di 4,33-4,44 miliardi di dollari (declino del 2%), un EBITDA rettificato di 885-915 milioni di dollari (declino dell'8%) e un utile per azione rettificato di 3,16-3,52 dollari (decremento del 12%), tenendo conto della prevista vendita della sua attività GSS.
FMC reportó sólidos resultados del tercer trimestre de 2024 con ingresos de 1.07 mil millones de dólares, un aumento del 9% en comparación con el tercer trimestre de 2023 y un 12% de manera orgánica. La compañía registró un ingreso neto consolidado GAAP de 66 millones de dólares (0.52 dólares por acción), en comparación con una pérdida neta en el tercer trimestre de 2023. El EBITDA ajustado alcanzó 201 millones de dólares, un incremento del 15%. El crecimiento en volumen del 17% compensó una disminución del 5% en los precios y una presión cambiaria del 3%.
La compañía actualizó su pronóstico para el año completo 2024, esperando ingresos de 4.33-4.44 mil millones de dólares (una disminución del 2%), EBITDA ajustado de 885-915 millones de dólares (una disminución del 8%) y EPS ajustado de 3.16-3.52 dólares (una disminución del 12%), teniendo en cuenta la esperada venta de su negocio GSS.
FMC는 2024년 3분기에 10억 7천만 달러의 매출로 강력한 실적을 보고했으며, 이는 2023년 3분기 대비 9% 증가하고, 유기적으로는 12% 증가한 수치입니다. 이 회사는 6600만 달러의 GAAP 기준 총 순이익(주당 0.52달러)을 기록했으며, 2023년 3분기에는 순손실을 기록했습니다. 조정된 EBITDA는 2억 1천만 달러에 달해 15% 증가했습니다. 17%의 물량 증가가 5%의 가격 하락과 3%의 외환 압박을 상쇄했습니다.
회사는 2024년 전체 연간 전망을 업데이트하여 43억 3천만 ~ 44억 4천만 달러의 수익(2% 감소), 8억 8천 5백만 ~ 9억 1천5백만 달러의 조정 EBITDA(8% 감소), 3.16 ~ 3.52달러의 조정 주당순이익(12% 감소)을 예상하며, GSS 사업의 매각이 예상된다는 점을 고려했습니다.
FMC a annoncé des résultats solides pour le troisième trimestre 2024 avec un chiffre d'affaires de 1,07 milliard de dollars, en hausse de 9% par rapport au troisième trimestre 2023 et de 12% de manière organique. L'entreprise a affiché un bénéfice net consolidé GAAP de 66 millions de dollars (0,52 dollar par action), contre une perte nette au troisième trimestre 2023. L'EBITDA ajusté a atteint 201 millions de dollars, en hausse de 15%. La croissance des volumes de 17% a compensé une baisse des prix de 5% et un impact négatif de 3% des changes.
L'entreprise a mis à jour ses prévisions pour l'année complète 2024, s'attendant à un chiffre d'affaires de 4,33 à 4,44 milliards de dollars (une baisse de 2%), un EBITDA ajusté de 885 à 915 millions de dollars (une baisse de 8%) et un BPA ajusté de 3,16 à 3,52 dollars (une baisse de 12%), tenant compte de la vente prévue de son activité GSS.
FMC hat solide Ergebnisse für das dritte Quartal 2024 berichtet, mit einem Umsatz von 1,07 Milliarden Dollar, was einem Anstieg von 9% im Vergleich zum dritten Quartal 2023 und 12% organisch entspricht. Das Unternehmen erzielte einen konsolidierten GAAP-Nettoertrag von 66 Millionen Dollar (0,52 Dollar pro Aktie), verglichen mit einem Nettoverlust im dritten Quartal 2023. Das bereinigte EBITDA erreichte 201 Millionen Dollar, ein Anstieg von 15%. Das Volumenwachstum von 17% kompensierte einen Preisrückgang von 5% und einen Wechselkursdruck von 3%.
Das Unternehmen hat seinen Ausblick für das Gesamtjahr 2024 aktualisiert und erwartet einen Umsatz von 4,33 bis 4,44 Milliarden Dollar (2% Rückgang), ein bereinigtes EBITDA von 885 bis 915 Millionen Dollar (8% Rückgang) und einen bereinigten Gewinn pro Aktie von 3,16 bis 3,52 Dollar (12% Rückgang), wobei der erwartete Verkauf seines GSS-Geschäfts berücksichtigt wird.
- Revenue increased 9% to $1.07 billion in Q3 2024
- Strong volume growth of 17% in Q3
- Adjusted EBITDA up 15% to $201 million
- North America revenue increased 48% year-over-year
- Free cash flow guidance maintained at $400-500 million
- Increased restructuring savings target to $125-150 million
- 5% price decline, primarily in Latin America
- Full-year revenue expected to decline 2% versus 2023
- Adjusted EBITDA projected to decline 8% for full-year 2024
- 12% decrease in adjusted EPS outlook for 2024
- EMEA revenue declined 7% year-over-year
- Asia revenue declined 10% due to volume declines and lower pricing
Insights
The Q3 results show significant improvement with
However, the full-year outlook indicates some challenges, with revenue expected to decline
Regional performance shows mixed results with North America leading growth at
The company's new products, particularly fluindapyr-based fungicides and biologicals, demonstrate strong market acceptance. Plant Health revenue grew
Volume growth and higher cost savings led to earnings above the high end of guidance range
Third Quarter 2024 Highlights
- Revenue of
, an increase of 9 percent versus Q3 2023 and up 12 percent organically1$1.07 billion - Consolidated GAAP net income of
, up$66 million from a net loss of$70 million in Q3 2023$4 million - Adjusted EBITDA of
, up 15 percent versus Q3 2023$201 million - Consolidated GAAP net income of
per diluted share, up$0.52 from a net loss of$0.55 per diluted share in Q3 2023$0.03 - Adjusted earnings per diluted share of
, up 57 percent versus Q3 2023$0.69 - GAAP Cash from operations of
with free cash flow of$160 million $132 million
Full-Year Outlook2
- Revenue outlook of
to$4.33 billion , reflecting a 2 percent decline at the midpoint versus 2023; reduced$4.44 billion for loss of contribution from Global Specialty Solutions (GSS) business3$20 million - Adjusted EBITDA outlook range of
to$885 million , reflecting an 8 percent decline at the midpoint versus 2023; reduced$915 million for loss of contribution from GSS business3$10 million - Adjusted earnings per diluted share outlook range of
to$3.16 , reflecting a 12 percent decrease at the midpoint versus 2023$3.52 - Increases target restructuring savings range to
to$125 million of adjusted EBITDA net benefit$150 million - Free cash flow outlook range unchanged at
to$400 million $500 million
FMC Corporation (NYSE: FMC) today reported third quarter 2024 revenue of
Third Quarter Adjusted EPS versus Prior-Year Quarter | +25 cents |
Adjusted EBITDA | +18 cents |
Interest Expense | |
Depreciation & Amortization | |
Minority Interest | - |
Taxes | +3 cents |
Rounding | - |
"We delivered revenue and earnings growth as market conditions improved although at varying rates across the regions," said Pierre Brondeau, FMC chairman and chief executive officer. "Strong volume growth in
Revenue growth in the quarter of 9 percent was driven by a 17 percent increase in volume, with some
In
FMC Revenue | Q3 2024 | ||
Total Revenue Change (GAAP) | 9 % | ||
Less FX Impact | (3) % | ||
Organic1 Revenue Change (Non-GAAP) | 12 % | ||
Third quarter adjusted EBITDA was
Full-Year 2024 Outlook2,3
The company is confirming its full-year 2024 outlook for sales and EBITDA and updating its outlook for adjusted EPS. The midpoints for sales and EBITDA are adjusted for the imminent sale of the GSS business, which is expected to close in early November. Full-year revenue guidance has tightened to be in the range of
Fourth Quarter Outlook2,3
The fourth quarter outlook has been adjusted to reflect the imminent sale of the GSS business (
"We plan to deliver strong fourth quarter growth despite a shift of some second half orders from the fourth quarter into the third quarter, while many countries continue operating in challenging conditions," said Brondeau. "Key fourth quarter earnings growth drivers are robust sales of new products as well as additional cost benefits from our restructuring program. We still expect further earnings growth in 2025 from cost tailwinds as well as moderate top line growth as market conditions improve."
Full Year 2024 Outlook2,3 | Q4 2024 Outlook2,3 | |
Revenue | ||
Growth at midpoint vs. 2023* | -2 % | 19 % |
Adjusted EBITDA | ||
Growth at midpoint vs. 2023* | -8 % | 32 % |
Adjusted EPS^ | ||
Growth at midpoint vs. 2023* | -12 % | 54 % |
^Adjusted EPS estimates assume 125.3 million diluted shares for Q4 and full year. |
*Percentages are calculated using whole numbers. Minor differences may exist due to rounding. |
Supplemental Information
The company will post supplemental information on the web at investors.fmc.com, including its webcast slides for tomorrow's earnings call, definitions of non-GAAP terms and reconciliations of non-GAAP figures to the most directly comparable GAAP term.
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About FMC
FMC Corporation is a global agricultural sciences company dedicated to helping growers produce food, feed, fiber and fuel for an expanding world population while adapting to a changing environment. FMC's innovative crop protection solutions – including biologicals, crop nutrition, digital and precision agriculture – enable growers, crop advisers and turf and pest management professionals to address their toughest challenges economically while protecting the environment. With approximately 5,800 employees at more than 100 sites worldwide, FMC is committed to discovering new herbicide, insecticide and fungicide active ingredients, product formulations and pioneering technologies that are consistently better for the planet. Visit fmc.com to learn more and follow us on LinkedIn®.
Statement under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995: FMC and its representatives may from time to time make written or oral statements that are "forward-looking" and provide other than historical information, including statements contained in this press release, in FMC's other filings with the SEC, and in presentations, reports or letters to FMC stockholders.
In some cases, FMC has identified these forward-looking statements by such words or phrases as "outlook", "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words or phrases. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for the company based on currently available information. The forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These statements are qualified by reference to the risk factors included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"), the section captioned "Forward-Looking Information" in Part II of the 2023 Form 10-K and to similar risk factors and cautionary statements in all other reports and forms filed with the Securities and Exchange Commission ("SEC"). We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are qualified in their entirety by the above cautionary statement.
We specifically decline to undertake any obligation, and specifically disclaims any duty, to publicly update or revise any forward-looking statements that have been made to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as may be required by law.
This press release contains certain "non-GAAP financial terms" which are defined on our website www.fmc.com/investors. Such terms include adjusted EBITDA, adjusted earnings, free cash flow and organic revenue growth. In addition, we have also provided on our website reconciliations of non-GAAP terms to the most directly comparable GAAP term.
- Organic revenue growth (non-GAAP) excludes the impact of foreign currency changes.
- Although we provide forecasts for adjusted earnings per share, adjusted EBITDA, and free cash flow (non-GAAP financial measures), we are not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for us to forecast. Such elements include, but are not limited to, restructuring, acquisition charges, and discontinued operations. As a result, no GAAP outlook is provided.
- Adjusted for anticipated sale of Global Specialty Solutions (GSS) business expected to close in early November 2024
FMC CORPORATION CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited and in millions, except per share amounts) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue | $ 1,065.4 | $ 981.9 | $ 3,021.8 | $ 3,340.7 | |||
Costs of sales and services | 679.0 | 600.7 | 1,897.6 | 1,945.4 | |||
Gross margin | $ 386.4 | $ 381.2 | $ 1,124.2 | $ 1,395.3 | |||
Selling, general and administrative expenses | 159.2 | 171.3 | 487.9 | 562.8 | |||
Research and development expenses | 69.0 | 80.9 | 205.8 | 247.0 | |||
Restructuring and other charges (income) | 22.6 | 28.2 | 158.6 | 48.0 | |||
Total costs and expenses | $ 929.8 | $ 881.1 | $ 2,749.9 | $ 2,803.2 | |||
Income from continuing operations before non-operating pension and | $ 135.6 | $ 100.8 | $ 271.9 | $ 537.5 | |||
Non-operating pension and postretirement charges (income) | 4.4 | 4.2 | 12.9 | 13.4 | |||
Interest expense, net | 58.7 | 64.6 | 184.0 | 180.5 | |||
Income (loss) from continuing operations before income taxes | $ 72.5 | $ 32.0 | $ 75.0 | $ 343.6 | |||
Provision (benefit) for income taxes | 6.0 | 27.4 | (298.9) | 77.7 | |||
Income (loss) from continuing operations | $ 66.5 | $ 4.6 | $ 373.9 | $ 265.9 | |||
Discontinued operations, net of income taxes | (0.9) | (8.3) | (16.2) | (41.3) | |||
Net income (loss) | $ 65.6 | $ (3.7) | $ 357.7 | $ 224.6 | |||
Less: Net income (loss) attributable to noncontrolling interests | 0.6 | (0.2) | 0.3 | 1.6 | |||
Net income (loss) attributable to FMC stockholders | $ 65.0 | $ (3.5) | $ 357.4 | $ 223.0 | |||
Amounts attributable to FMC stockholders: | |||||||
Income (loss) from continuing operations | $ 65.9 | $ 4.8 | $ 373.6 | $ 264.3 | |||
Discontinued operations, net of tax | (0.9) | (8.3) | (16.2) | (41.3) | |||
Net income (loss) | $ 65.0 | $ (3.5) | $ 357.4 | $ 223.0 | |||
Basic earnings (loss) per common share attributable to FMC stockholders: | |||||||
Continuing operations | $ 0.53 | $ 0.04 | $ 2.98 | $ 2.11 | |||
Discontinued operations | (0.01) | (0.07) | (0.13) | (0.33) | |||
Basic earnings per common share | $ 0.52 | $ (0.03) | $ 2.85 | $ 1.78 | |||
Average number of shares outstanding used in basic earnings per share computations | 125.0 | 124.9 | 125.0 | 125.1 | |||
Diluted earnings (loss) per common share attributable to FMC stockholders: | |||||||
Continuing operations | $ 0.53 | $ 0.04 | $ 2.98 | $ 2.10 | |||
Discontinued operations | (0.01) | (0.07) | (0.13) | (0.33) | |||
Diluted earnings per common share | $ 0.52 | $ (0.03) | $ 2.85 | $ 1.77 | |||
Average number of shares outstanding used in diluted earnings per share computations | 125.5 | 125.3 | 125.3 | 125.7 | |||
Other Data: | |||||||
Capital additions and other investing activities | $ 13.7 | $ 35.5 | $ 51.5 | $ 116.6 | |||
Depreciation and amortization expense | 43.2 | 45.6 | 133.2 | 138.4 |
FMC CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP) TO ADJUSTED AFTER-TAX EARNINGS FROM CONTINUING OPERATIONS, ATTRIBUTABLE TO FMC STOCKHOLDERS (NON-GAAP) (Unaudited and in millions, except per share amounts) | |||||||
Three Months Ended | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income (loss) attributable to FMC stockholders (GAAP) | $ 65.0 | $ (3.5) | $ 357.4 | $ 223.0 | |||
Corporate special charges (income): | |||||||
Restructuring and other charges (income) (a) | 22.6 | 28.2 | 158.6 | 48.0 | |||
Non-operating pension and postretirement charges (income) (b) | 4.4 | 4.2 | 12.9 | 13.4 | |||
Income tax expense (benefit) on Corporate special charges (income) (c) | (5.0) | (4.2) | (28.4) | (8.5) | |||
Adjustment for noncontrolling interest, net of tax on Corporate special charges (income) | — | 0.4 | — | (1.6) | |||
Discontinued operations attributable to FMC stockholders, net of income taxes (d) | 0.9 | 8.3 | 16.2 | 41.3 | |||
Tax adjustment (e) | (0.7) | 22.0 | (305.0) | 25.5 | |||
Adjusted after-tax earnings from continuing operations attributable | $ 87.2 | $ 55.4 | $ 211.7 | $ 341.1 | |||
Diluted earnings per common share (GAAP) | $ 0.52 | $ (0.03) | $ 2.85 | $ 1.77 | |||
Corporate special charges (income) per diluted share, before tax: | |||||||
Restructuring and other charges (income) | 0.18 | 0.22 | 1.27 | 0.39 | |||
Non-operating pension and postretirement charges (income) | 0.03 | 0.03 | 0.10 | 0.11 | |||
Income tax expense (benefit) on Corporate special charges (income), per diluted share | (0.04) | (0.03) | (0.23) | (0.07) | |||
Adjustment for noncontrolling interest, net of tax on Corporate special charges (income) per diluted share | — | — | — | (0.02) | |||
Discontinued operations attributable to FMC stockholders, net of income taxes per diluted share | 0.01 | 0.07 | 0.13 | 0.33 | |||
Tax adjustments per diluted share | (0.01) | 0.18 | (2.43) | 0.20 | |||
Diluted adjusted after-tax earnings from continuing operations per | $ 0.69 | $ 0.44 | $ 1.69 | $ 2.71 | |||
Average number of shares outstanding used in diluted adjusted after-tax | 125.5 | 125.3 | 125.3 | 125.7 |
____________________
(1) | Referred to as Adjusted earnings. The Company believes that Adjusted earnings, a Non-GAAP financial measure, and its presentation on a per share basis provides useful information about the Company's operating results to management, investors, and securities analysts. Adjusted earnings excludes the effects of corporate special charges, tax-related adjustments and the results of our discontinued operations. The Company also believes that excluding the effects of these items from operating results allows management and investors to compare more easily the financial performance of its underlying business from period to period. |
(a) | Three Months Ended September 30, 2024: |
Restructuring and other charges (income) includes restructuring charges of | |
Three Months Ended September 30, 2023: | |
Restructuring and other charges (income) includes | |
Nine Months Ended September 30, 2024: | |
Restructuring and other charges (income) includes restructuring charges of | |
Nine Months Ended September 30, 2023: | |
Restructuring and other charges (income) includes | |
(b) | Our non-operating pension and postretirement charges (income) are defined as those costs (benefits) related to interest, expected return on plan assets, amortized actuarial gains and losses and the impacts of any plan curtailments or settlements. These are excluded from our Adjusted Earnings and are primarily related to changes in pension plan assets and liabilities which are tied to financial market performance and we consider these costs to be outside our operational performance. We continue to include the service cost and amortization of prior service cost in our Adjusted Earnings results noted above. These elements reflect the current year operating costs to our businesses for the employment benefits provided to active employees. |
(c) | The income tax expense (benefit) on Corporate special charges (income) is determined using the applicable rates in the taxing jurisdictions in which the corporate special charge or income occurred and includes both current and deferred income tax expense (benefit) based on the nature of the non-GAAP performance measure. |
(d) | Discontinued operations includes provisions, net of recoveries, for environmental liabilities and legal reserves and expenses related to previously discontinued operations and retained liabilities. Discontinued operations for the nine months ended September 30, 2024 includes cash proceeds, net of fees of |
(e) | We exclude the GAAP tax provision, including discrete items, from the Non-GAAP measure of income, and include a Non-GAAP tax provision based upon the projected annual Non-GAAP effective tax rate. The GAAP tax provision includes certain discrete tax items including, but are not limited to: income tax expenses or benefits that are not related to continuing operating results in the current year; tax adjustments associated with fluctuations in foreign currency remeasurement of certain foreign operations; certain changes in estimates of tax matters related to prior fiscal years; certain changes in the realizability of deferred tax assets and related interim accounting impacts; and changes in tax law. Management believes excluding these discrete tax items assists investors and securities analysts in understanding the tax provision and the effective tax rate related to continuing operating results thereby providing investors with useful supplemental information about FMC's operational performance. |
Three Months Ended | Nine Months Ended | ||||||
(in Millions) | 2024 | 2023 | 2024 | 2023 | |||
Non-GAAP tax adjustments | |||||||
Revisions to valuation allowances of historical deferred tax assets | $ — | $ — | $ (1.6) | $ — | |||
Foreign currency remeasurement and other discrete items | (0.7) | 22.0 | (303.4) | 25.5 | |||
Total Non-GAAP tax adjustments | $ (0.7) | $ 22.0 | $ 25.5 |
In connection with our plans to establish a global technology and innovation center in |
RECONCILIATION OF NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM CONTINUING (Unaudited, in millions) | |||||||
Three Months Ended | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income (loss) (GAAP) | $ 65.6 | $ (3.7) | $ 357.7 | $ 224.6 | |||
Restructuring and other charges (income) | 22.6 | 28.2 | 158.6 | 48.0 | |||
Non-operating pension and postretirement charges (income) | 4.4 | 4.2 | 12.9 | 13.4 | |||
Discontinued operations, net of income taxes | 0.9 | 8.3 | 16.2 | 41.3 | |||
Interest expense, net | 58.7 | 64.6 | 184.0 | 180.5 | |||
Depreciation and amortization | 43.2 | 45.6 | 133.2 | 138.4 | |||
Provision (benefit) for income taxes | 6.0 | 27.4 | (298.9) | 77.7 | |||
Adjusted earnings from continuing operations, before interest, income | $ 201.4 | $ 174.6 | $ 563.7 | $ 723.9 |
___________________
(1) | Referred to as Adjusted EBITDA. Defined as operating profit excluding restructuring and other charges (income) and depreciation and amortization expense. |
RECONCILIATION OF CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES OF (Unaudited, in millions) | |||||||
Three Months Ended | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Cash provided (required) by operating activities of continuing operations (GAAP) | $ 159.5 | $ 101.6 | $ 308.8 | ||||
Project Focus transformation spending (1) | 26.4 | — | 89.9 | — | |||
Capital expenditures | (15.7) | (33.0) | (46.3) | (108.8) | |||
Other investing activities | 2.0 | (2.5) | (5.2) | (7.8) | |||
Capital additions and other investing activities | $ (13.7) | $ (35.5) | $ (51.5) | ||||
Cash provided (required) by operating activities of discontinued operations | (18.3) | (34.1) | (37.2) | (61.0) | |||
Project Focus transformation spending (1) | (26.4) | — | (89.9) | — | |||
Proceeds from Land Disposition | — | — | — | 5.8 | |||
Legacy and transformation | $ (44.7) | $ (34.1) | $ (55.2) | ||||
Divestiture transaction costs (2) | $ 4.6 | $ — | $ 4.6 | $ — | |||
Free cash flow (Non-GAAP)(3) | $ 132.1 | $ 32.0 | $ 224.7 |
___________________
(1) | Represents cash payments made in connection with our Project Focus transformation program. This spending is reclassified within this reconciliation to be reflected in the "Legacy and transformation" category. The presentation has no impact on our cash provided (required) by operating activities of continuing operations (GAAP) or free cash flow (non-GAAP). |
(2) | Represents transactional-related costs such as legal and professional third-party fees associated with the anticipated sale of our Global Specialty Solutions ("GSS") business. Proceeds from the sale of our GSS business anticipated for the fourth quarter 2024 will be excluded from free cash flow when received. Therefore, we have also excluded the related transaction costs from free cash flow. |
(3) | Free cash flow is defined as cash provided (required) by operating activities of continuing operations (GAAP) adjusted for spending for capital additions and other investing activities as well as legacy and transformation spending and divestiture transaction costs associated with the anticipated sale of our GSS business. As noted above, Project Focus transformation spending is reclassified into "Legacy and transformation" for presentation purposes. We believe that this Non-GAAP financial measure provides a useful basis for investors and securities analysts about the cash generated by routine business operations, including capital expenditures, in addition to assessing our ability to repay debt, fund acquisitions and return capital to shareholders through share repurchases and dividends. Our use of free cash flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results under |
RECONCILIATION OF REVENUE CHANGE (GAAP) TO ORGANIC REVENUE CHANGE (NON-GAAP) (1) (Unaudited) | |||
Three Months Ended | Nine Months Ended | ||
Total Revenue Change (GAAP) | 9 % | (10) % | |
Less: Foreign Currency Impact | (3) % | (2) % | |
Organic Revenue Change (Non-GAAP) | 12 % | (8) % |
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(1) | We believe organic revenue growth (non-GAAP) provides management and investors with useful supplemental information regarding our ongoing revenue performance and trends by presenting revenue growth excluding the impact of fluctuations in foreign exchange rates. |
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP) TO RETURN ON INVESTED CAPITAL ("ROIC") NUMERATOR (NON-GAAP) AND ROIC (USING NON-GAAP NUMERATOR)(1) (Unaudited) | |||
Twelve Months Ended | |||
September 30, 2024 | |||
Net income (loss) attributable to FMC stockholders (GAAP) | $ 1,455.9 | ||
Interest expense, net, net of income taxes | 206.1 | ||
Corporate special charges (income) | 366.4 | ||
Income tax expense (benefit) on Corporate special charges (income) | (52.7) | ||
Discontinued operations attributable to FMC stockholders, net of income taxes | 73.4 | ||
Tax adjustments | (1,497.9) | ||
ROIC numerator (Non-GAAP) | $ 551.2 | ||
September 30, 2024 | September 30, 2023 | ||
Total debt | $ 4,070.0 | $ 4,115.7 | |
Total FMC stockholders' equity | 4,607.8 | 3,290.9 | |
Total debt and FMC stockholders' equity (GAAP) | $ 8,677.8 | $ 7,406.6 | |
ROIC denominator (2 yr average total debt and FMC stockholders' equity) | $ 8,042.2 | ||
ROIC (using Net income (loss) attributable to FMC stockholders (GAAP) as numerator) | 18.10 % | ||
ROIC (using Non-GAAP numerator) | 6.85 % |
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(1) | We believe ROIC (non-GAAP) provides management and investors with useful supplemental information regarding our utilization of capital provided by both equity and debt as well as our working capital and free cash flow management. |
FMC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in millions) | |||
September 30, 2024 | December 31, 2023 | ||
Cash and cash equivalents | $ 416.7 | $ 302.4 | |
Trade receivables, net of allowance of | 2,890.5 | 2,703.2 | |
Inventories | 1,392.1 | 1,724.6 | |
Prepaid and other current assets | 616.2 | 398.9 | |
Total current assets | $ 5,315.5 | $ 5,129.1 | |
Property, plant and equipment, net | 869.4 | 892.5 | |
Goodwill | 1,517.8 | 1,593.6 | |
Other intangibles, net | 2,421.7 | 2,465.1 | |
Deferred income taxes | 1,621.1 | 1,336.6 | |
Other long-term assets | 473.2 | 509.3 | |
Total assets | $ 12,218.7 | $ 11,926.2 | |
Short-term debt and current portion of long-term debt | $ 1,043.2 | $ 934.0 | |
Accounts payable, trade and other | 802.9 | 602.4 | |
Advanced payments from customers | 0.4 | 482.1 | |
Accrued and other liabilities | 739.3 | 684.8 | |
Accrued customer rebates | 835.1 | 480.9 | |
Guarantees of vendor financing | 77.9 | 69.6 | |
Accrued pensions and other postretirement benefits, current | 6.4 | 6.4 | |
Income taxes | 83.2 | 124.4 | |
Total current liabilities | $ 3,588.4 | $ 3,384.6 | |
Long-term debt, less current portion | $ 3,026.8 | $ 3,023.6 | |
Long-term liabilities | 973.4 | 1,084.6 | |
Equity | 4,630.1 | 4,433.4 | |
Total liabilities and equity | $ 12,218.7 | $ 11,926.2 |
FMC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions) | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Cash provided (required) by operating activities of continuing operations | $ 308.8 | $ (618.2) | |
Cash provided (required) by operating activities of discontinued operations | (37.2) | (61.0) | |
Cash provided (required) by investing activities of continuing operations | (55.9) | (126.8) | |
Cash provided (required) by financing activities of continuing operations | (101.5) | 562.1 | |
Effect of exchange rate changes on cash | 0.1 | (4.3) | |
Increase (decrease) in cash and cash equivalents | $ 114.3 | $ (248.2) | |
Cash and cash equivalents, beginning of period | $ 302.4 | $ 572.0 | |
Cash and cash equivalents, end of period | $ 416.7 | $ 323.8 |
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SOURCE FMC Corporation
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