FMC Corp (FMC) Reports Q3 2023 Earnings, Confirms Full-Year Outlook Amid Lower Sales
FMC Corp (NYSE:FMC) reports Q3 2023 revenue of $982 million, a decrease of 29% compared to Q3 2022.
Consolidated GAAP net loss stands at $4 million, down 103% versus Q3 2022.
Adjusted earnings per diluted share are $0.44, down 64% compared to Q3 2022.
FMC Corp (NYSE:FMC) confirms full-year outlook, with revenue expected to be between $4.48 billion and $4.72 billion.
On October 30, 2023, FMC Corp (NYSE:FMC) announced its third quarter results, reporting a significant impact due to lower sales in Latin America and channel destocking in all regions. The company's Q3 2023 revenue stood at $982 million, marking a decrease of 29% compared to the same period in 2022. The consolidated GAAP net loss was $4 million, down 103% versus Q3 2022. Adjusted earnings per diluted share were $0.44, a decrease of 64% compared to Q3 2022.
Financial Performance and Challenges
FMC Corp (NYSE:FMC)'s Q3 results were significantly below the prior year, driven by volume headwinds from a continuation of channel destocking behavior that began in the prior quarter. The destocking was much worse than anticipated in Brazil. Despite this, on-the-ground application remains steady as growers continue to protect their crops.
Our results were significantly below the prior year driven by volume headwinds from a continuation of channel destocking behavior that began in the prior quarter. Destocking was much worse than anticipated in Brazil. Despite this, on-the-ground application remains steady as growers continue to protect their crops," said Mark Douglas, FMC president and chief executive officer.
Financial Achievements and Full-Year Outlook
Despite the challenges, FMC Corp (NYSE:FMC) confirmed its full-year outlook. The company is forecasting full-year 2023 revenue to be in the range of $4.48 billion to $4.72 billion, reflecting a 21% decline at the midpoint versus 2022. Full-year adjusted EBITDA is expected to be in the range of $0.97 billion to $1.03 billion, representing a 29% decline year-over-year at the midpoint. The forecast for the 2023 adjusted earnings range is lowered to $3.57 to $4.13 per diluted share, representing a year-over-year decrease of 48% at the midpoint.
Analysis of Company's Performance
Despite the decrease in overall sales, sales of products launched in the last five years were up 4% year-over-year, with growth in all regions. This indicates the robustness of differentiated and higher value products even in challenging environments. However, sales in all regions declined versus the prior-year period as partners, the distribution channel, and growers continued to reduce inventory levels. The company is implementing a company-wide restructuring program to right-size its cost base while continuing to invest in the development and launch of new products.
Important Financial Tables
According to the company's condensed consolidated statements of income, the total revenue for the three months ended September 30, 2023, was $981.9 million, compared to $1,377.2 million for the same period in 2022. The net income attributable to FMC stockholders for the three months ended September 30, 2023, was a loss of $3.5 million, compared to a gain of $121.0 million for the same period in 2022.
For the nine months ended September 30, 2023, the total revenue was $3,340.7 million, compared to $4,180.3 million for the same period in 2022. The net income attributable to FMC stockholders for the nine months ended September 30, 2023, was $223.0 million, compared to $462.6 million for the same period in 2022.
Explore the complete 8-K earnings release (here) from FMC Corp for further details.
This article first appeared on GuruFocus.
