In This Article:
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Sales Growth: 9% overall growth, with organic sales growth of 12%.
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Volume Growth: 17% increase, led by Brazil and the US.
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North America Sales Increase: 48% due to strong volume growth.
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Latin America Sales Growth: 8% with 15% growth excluding currency impacts.
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Asia Sales Decline: 10% decrease, primarily due to lower sales in India.
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Adjusted EBITDA Growth: 15% year-over-year increase.
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Cost Savings Target: $125 million to $150 million in 2024, with a gross run rate of over $225 million in 2025.
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Interest Expense: $58.7 million for the third quarter, down nearly $6 million from the prior year.
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Effective Tax Rate: 11.8% for the third quarter, with a full-year range of 13% to 15%.
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Gross Debt: Approximately $4.1 billion as of September 30, down $110 million from the prior quarter.
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Free Cash Flow: $132 million in the third quarter, an improvement of $100 million from the prior year period.
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Full Year Free Cash Flow Expectation: $400 million to $500 million for 2024.
Release Date: October 30, 2024
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) reported strong third-quarter sales growth of 9%, with organic sales growth of 12%, driven by volume increases in Brazil and the US.
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North America outperformed expectations, with a 48% increase in sales due to strong volume growth and increased orders from diamide partners.
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New products, including fluindapyr and Isoflex, are showing strong growth potential, with expected combined sales of over $100 million in the second half of the year.
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The company is accelerating cost savings initiatives, targeting $125 million to $150 million in savings for 2024, with a gross run rate of over $225 million in 2025.
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FMC Corp (NYSE:FMC) confirmed its full-year guidance, expecting fourth-quarter sales growth of 19% at the guidance midpoint, driven by new product introductions and cost benefits from restructuring.
Negative Points
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Latin America faced unexpected challenges, particularly in Brazil and Argentina, due to delayed rains, increased borrowing rates, and the bankruptcy of a large customer.
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Pricing pressures were significant, with about two-thirds of the total company price decline attributed to Brazil and Argentina.
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Asia experienced a 10% sales decline, primarily due to lower sales in India as the country continues to work through excess channel inventory.
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FMC Corp (NYSE:FMC) anticipates continued FX headwinds, particularly from the Brazilian real, impacting revenue growth.
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The company expects a mid-single-digit price headwind in the fourth quarter due to ongoing challenging market conditions, especially in Asia and Latin America.