Chemical company FMC Corporation (FMC - Free Report) has secured exclusive rights to develop and market a patented fungicide from Belgium-based pesticide distribution company Belchim Crop Protection. Terms of the licensing pact were not disclosed.
The agreement allows FMC Corp. to manufacture and sell the fungicide "valifenalate" across North America, Latin America and some specific countries outside of the Americas.
Valifenalate, which is approved for application on high-value crops such as grapes, tomatoes and other vegetables, is effective against various types of mildew and is currently marketed primarily under the Valis moniker. FMC Corp. plans to roll out valifenalate mixtures in Latin America immediately with more markets to follow soon after.
Valifenalate expands FMC Corp.’s increasing range of patented products currently available globally. The addition of this fungicide further diversifies the company’s crop protection portfolio and strengthens its agricultural business.
FMC Corp., which has annual sales of roughly $3.7 billion, is a leading diversified chemical company that serves agricultural, industrial, environmental and consumer markets across the globe.
FMC Corp. reported its second-quarter 2013 results in Jul 2013. Consolidated profit, as reported, went up roughly 12.5% year over year to $118 million (or 86 cents a share) riding on a healthy performance of the company’s core Agricultural Solutions segment. Adjusted earnings (excluding one-time charges) of 94 cents per share met the Zacks Consensus Estimate.
Revenues rose 6% year over year to $959.4 million in the reported quarter on strength in the agricultural products business. It was ahead of the Zacks Consensus Estimate of $950 million.
Revenues from the Agricultural Solutions division rose 12% year over year to $442.6 million in the reported quarter on the heels of strong demand across all regions barring Europe, Middle East and Africa (EMEA). The Agricultural segment is expected to make a strong finish to 2013 driven by favorable market conditions in Latin America.
FMC Corp. also noted that it is well placed to meet or exceed its targets for “Vision 2015, a road map for future. Recent acquisitions and development agreements are adding strength to its agricultural business, while expanding portfolio and the new Thailand facility (expected to come on stream in end-2014) are expected to drive earnings in the health and nutrition franchise.
FMC Corp. currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the chemical industry with favorable Zacks Rank are Cytec Industries Inc. , Eastman Chemical Co. (EMN - Free Report) and WD-40 Company (WDFC - Free Report) . All of them carry a Zacks Rank #2 (Buy).