Second Quarter 2018 Highlights
Philadelphia, PA (August 1, 2018) - FMC Corporation reported second quarter 2018 revenue of approximately $1.3 billion, an increase of 92 percent year-over-year. On a GAAP basis, the company reported earnings of $0.96 per diluted share in the second quarter, or $130 million, which is 71 percent higher than the GAAP earnings of $0.56 per diluted share, or $75 million, in the second quarter of 2017. Second quarter adjusted earnings were $1.78 per diluted share, an increase of 271 percent year-over-year.
Pierre Brondeau, FMC CEO and chairman said: "FMC delivered a very strong quarter. In Ag Solutions, we continued to generate robust demand for the recently acquired products as our worldwide integration is progressing very well. In Lithium, volume increases from our plant in Argentina and average realized price increases of over 20 percent on both lithium hydroxide and carbonate led to a near doubling of Lithium segment EBITDA year-over-year. We were also very encouraged by the cash flow performance in the quarter, and we have increased our outlook for the full year."
FMC Agricultural Solutions
FMC Agricultural Solutions reported second quarter revenue of approximately $1.2 billion, an increase of 98 percent year-over-year due to the strength of the DuPont acquisition. On a pro forma basis, revenue increased 8 percent, with growth in all four regions and particularly strong demand for insecticides. Segment earnings before interest, tax, depreciation and amortization (EBITDA) of $344 million increased 202 percent year-over-year and were $14 millionabove the mid-point of the prior guidance range.
Full-year 2018 revenue for Agricultural Solutions is forecasted to be in the range of $4.1 billion to $4.3 billion. This implies 9 percent year-over-year growth on a pro forma basis. Full-year segment EBITDA is expected to be in the range of $1.17 billion to $1.23 billion. Third quarter segment EBITDA is forecasted to be in the range of $195 million to $215 million. Fourth quarter segment EBITDA is expected to be in the range of $275 million to $315 million.
Brondeau added, "We expect our second half to be very strong in Ag Solutions, driven by 7 percent year-over-year, pro forma revenue growth at the mid-point of our guidance."
FMC Lithium reported second quarter segment revenue of $108 million, an increase of 46 percent versus the prior-year quarter. Segment EBITDA increased 85 percent year-over-year to $51 million in the quarter, $2 million above the mid-point of the prior guidance range, driven by higher volumes and higher realized prices in all major product categories.
Segment revenue for the full year of 2018 is expected to be in the range of $430 million to $460 million, an increase of 28 percent at the mid-point compared to 2017. The outlook for full-year segment EBITDA has been raised by $2 million, to a range of $195 million to $205 million. This EBITDA forecast represents an increase of 41 percent at the mid-point compared to the prior year. Third quarter segment EBITDA is expected to be in the range of $45 million to $49 million, which represents an increase of 17 percent at the mid-point compared to the prior-year quarter.
FMC continues to expect adjusted earnings per share to be in the range of $5.90 to $6.20 for the full year 2018, an increase of 123 percent year-over-year. FMC expects adjusted earnings per share to be in the range of $0.87 to $0.97 in the third quarter and in the range of $1.41 to $1.61 in the fourth quarter.1 The separate listing of FMC Lithium stock remains on track for October 2018. FMC announced last week it will name the lithium materials business Livent Corporation following the IPO.
Webcast and Supplemental Information
The company will post supplemental information on the web at www.fmc.com, including its 2018 Outlook Statement, definitions of non-GAAP terms and reconciliations of non-GAAP figures to the nearest available GAAP term.
For more than a century, FMC Corporation has served the global agricultural, industrial and consumer markets with innovative solutions, applications and quality products. On November 1, 2017, FMC acquired a significant portion of DuPont's Crop Protection business. FMC employs approximately 7,000 people throughout the world and operates its businesses in two segments: FMC Agricultural Solutions and FMC Lithium. For more information, visit www.fmc.com.