Chemical company FMC Corporation (NYSE:FMC) has filed a litigation against Summit Agro LLC and Summit North American Holdings Corporation in United States District Court in Wilmington, Del., charging them for violating an FMC patent.
The litigation was filed against Summit for breaching FMC Corp.’s patent covering sulfentrazone herbicide production that are marketed in the U.S. under the Spartan and Authority brands, and also for its involvement in unfair competition. FMC Corp. seeks injunctive and monetary compensation from Summit for these violations.
FMC Corp. is set to protect its intellectual property rights as it has invested significantly in developing sulfentrazone and related production technology as well as positioning Spartan and Authority as strong brands in the minds of the customers.
FMC Corp. is a major diversified chemical company that serves agricultural, industrial, environmental and consumer markets across the globe. It is a leading maker of lithium-based materials for primary and rechargeable batteries used in laptops, cellular phones and electric cars.
FMC Corp.’s adjusted earnings for third-quarter 2013, reported on Oct 28, 2013, missed the Zacks Consensus Estimate. Profit slid 80% year over year due to hefty charges. Though revenues rose at a double-digit clip year over year on strength in the company’s core Agricultural Solutions segment, it missed expectations.
The company is well placed to meet or exceed its targets for “Vision 2015, a road map for future’’. Recent acquisitions and development agreements are strengthening its agricultural business. The company expects to deliver 13% revenue growth and 12% earnings per share growth in 2013, and anticipates business fundamentals to improve in 2014.
Moreover, expanding portfolio and the new Thailand facility (expected to come on stream in end-2014) are expected to drive earnings in the company's health and nutrition franchise. FMC Corp. is progressing with the construction of the Thailand facility, which will support the growing functional ingredients market in Asia.
However, FMC Corp. is exposed to significant currency headwind. It is also seeing increasing costs for certain raw materials. The most significant cost pressure has been witnessed for seaweed-based raw materials.
FMC Corp., which currently retains a Zacks Rank #3 (Hold), will release its fourth-quarter 2013 results on Feb 5 after the market closes.
Other chemical companies with favorable Zacks Rank are L'Air Liquide SA (OTC:AIQUY), Johnson Matthey plc (OTC:JMPLY) and LyondellBasell Industries NV (NYSE:LYB). While both L'Air Liquide and Johnson Matthey hold a Zacks Rank #1 (Strong Buy), LyondellBasell retains a Zacks Rank #2 (Buy).