In This Article:
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Revenue: Declined 14% versus the prior year.
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Pricing: Down 9%, with over half of the decline due to adjustments in certain cost-plus contracts.
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FX Headwind: 4% impact on revenue growth, largely driven by the Brazilian real and European currencies.
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Volume: Down 1% versus the prior year, with growth in Latin America offsetting declines elsewhere.
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North America Sales: Declined 28% due to lower volume and cautious ordering by retailers and growers.
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Latin America Sales: Grew 17%, excluding FX headwinds.
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Asia Sales: Declined 21%, excluding currency impacts.
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EMEA Sales: Declined 7%, excluding currency impacts.
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EBITDA: Declined 25% due to lower price, FX headwinds, and reduced volume.
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Interest Expense: $50.1 million, down over $11 million compared to the prior year period.
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Effective Tax Rate: 14% in the first quarter.
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Gross Debt: Approximately $4 billion, up $640 million from the prior quarter.
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Net Debt: Approximately $3.7 billion.
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Free Cash Flow: Negative $596 million, $408 million lower than the prior year period.
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Full-Year Guidance: Sales expected to be flat, adjusted EBITDA to grow 1%, and adjusted earnings per share to be flat at the midpoint.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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FMC Corp (NYSE:FMC) has made strong progress in reducing channel inventory levels, particularly in regions outside Asia, positioning the company well for the second half of the year.
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The company has successfully implemented its Rynaxypyr strategy, offering both lower-priced solo formulations and higher-value patented mixtures, which is expected to drive sales growth.
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FMC Corp (NYSE:FMC) has established a new route to market in Brazil, selling directly to large corn and soybean growers, which is anticipated to provide a significant growth opportunity.
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The company's growth portfolio, including new active ingredients like fluindapyr and Isoflex, is well-positioned to deliver strong results, with recent product registrations supporting future sales.
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FMC Corp (NYSE:FMC) has demonstrated resilience against tariff impacts by leveraging supply chain flexibility and cost-saving measures, minimizing the financial impact on the company.
Negative Points
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FMC Corp (NYSE:FMC) experienced a 14% decline in sales in Q1 compared to the previous year, driven by lower pricing and FX headwinds.
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The company faced a 25% decline in EBITDA in Q1 due to lower prices, FX headwinds, and reduced volume.
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North American sales declined by 28% due to cautious purchasing behavior from retailers and growers, impacting overall performance.
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The company anticipates a $15 million to $20 million cost headwind from tariffs, which could affect profitability if not managed effectively.
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FMC Corp (NYSE:FMC) continues to face challenges in Asia and EMEA, with sales declines due to prudent selling strategies and loss of product registrations.