Back to top

Analyst Blog

Chemical company FMC Corporation’s (FMC - Analyst Report) fourth-quarter 2012 adjusted earnings (excluding one-time charges) were 81 cents per share, in line with the Zacks Consensus Estimate and above the year-ago earnings of 79 cents.

Profit, as reported, shot up 31% year over year to $102.2 million (or 74 cents a share) on the heels of a strong performance of the company’s core Agricultural Products segment.

For full-year 2012, adjusted earnings came in at $3.48 per share, missing the Zacks Consensus Estimate by penny while surpassing the year-ago earnings of $2.99. Reported profit jumped 14% year over year to $416.2 million or $3.00 per share.

Revenues climbed 10% year over year to $1 billion in the reported quarter on strength in the agricultural products business. It beat the Zacks Consensus Estimate of $993 million.

For the full year, revenues climbed 11% year over year to $3.7 billion, meeting the Zacks Consensus Estimate.

Revenues from the Agricultural Products division surged 20% year over year to $492.4 million in the reported quarter on the back of continued momentum in Latin America. Segment profit soared 51% year over year, boosted by higher volumes in Latin America, acquisition of fungicides in Asia and demand in North America.  

Specialty Chemicals segment’s sales rose 6% to $236.2 million in the quarter on higher selling prices and volume across the board. Profit, however, dipped 5% due to higher costs in the Lithium business.

Revenues from the Industrial Chemicals unit fell 2% to $272.2 million. Profit fell 10% year over year to $38 million as a decline in export pricing in soda ash more than offset higher domestic soda ash pricing and higher volumes.

The company exited 2012 with cash and cash equivalents of $77.1 million, down 51% year over year. Long-term debt increased roughly 15% year over year to $915 million.

For full-year 2013, FMC Corp. expects adjusted earnings to be in the range of $3.81 to $4.01 per share. For the first quarter, the company forecast adjusted earnings in the band of $1.02 to $1.12 per share. The current corresponding Zacks Consensus Estimates for the first quarter and 2013 are $1.08 and $3.98, respectively.

FMC Corp. is a leading 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. currently retains a short-term Zacks Rank #2 (Buy).

Other companies in the chemical industry worth considering are Arkema S.A. (ARKAY), BASF SE (BASFY) and Air Products (APD - Analyst Report). While Arkema retains a Zacks Rank #1 (Strong Buy), both BASF and Air Products hold a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 116.37 +7.72%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%
RF MICRO DE… RFMD 11.76 +2.31%