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FMC Corp. (FMC - Free Report) reported a profit of $65.2 million or 49 cents per share in second-quarter 2016. The chemical maker’s profit (as reported) declined significantly from $742.3 million or $5.52 per share reported in second-quarter 2015.
Barring one-time items including restructuring charges, earnings came in at 69 cents per share in the quarter, topping the Zacks Consensus Estimate of 67 cents. However, adjusted earnings fell year over year by a penny.
Revenues declined 8.7% year over year to $810.3 million in the reported quarter. The figure also missed the Zacks Consensus Estimate of $903 million.
Revenues from the Agricultural Solutions division fell around 12% year over year to $552 million in the quarter owing to lower volumes and currency headwinds. Segment profits were $101 million, down 17% year over year, as lower operating cost was more than offset by lower volumes, lower favorable product mix and currency headwinds.
Health and Nutrition segment’s sales slipped roughly 6% year over year to $195 million in the quarter, hit by reduced Omega-3 sales volume and price. Segment profit fell 11% year over year to $45 million.
Revenues from the Lithium unit went up 15% to $63 million. Segment earnings jumped more than three-fold year over year to $16.5 million, aided by higher volumes and prices, better product mix and lower operating costs.
Balance Sheet
FMC Corp. ended the quarter with cash and cash equivalents of $93.6 million, down around 80.4% year over year. Long-term debt was $1,988.9 million, down 3% year over year.
Outlook
FMC Corp. raised its earnings guidance for 2016 and now sees adjusted earnings in the band of $2.60−$2.90 per share (up from the prior view of $2.55−$2.85 per share) for the year.
The company lowered the revenue expectation for its Agricultural Solutions unit to roughly $2.2−$2.4 billion for 2016, from the previous guidance of $2.3−$2.5 billion. Segment earnings for the year are still expected to be in the band of $380−$420 million. Earnings for the third quarter have been projected in the range of $80−$90 million.
For Health and Nutrition, revenue expectations for 2016 have been lowered to $750−$800 million from the prior estimate of $775−$825 million. The projection for earnings for the year has also been slightly lowered to $190−$196 million (previously between $198 million and $208 million). For the third quarter, segment earnings are expected to be in the band of $44−$48 million.
FMC Corp. now expects earnings for the Lithium unit to be in the band of $58−$66 million for 2016 (up from $43−$53 million expected earlier). For the third quarter, earnings are expected to be in the range of $13−$17 million. Revenues for 2016 are anticipated in the range of $245−$265 million.
Some better-ranked companies in the chemical space include Axiall Corporation , Shin-Etsu Chemical Co., Ltd. (SHECY - Free Report) and Stepan Company (SCL - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
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FMC Corp (FMC) Beats on Q2 Earnings, Ups FY16 EPS View
FMC Corp. (FMC - Free Report) reported a profit of $65.2 million or 49 cents per share in second-quarter 2016. The chemical maker’s profit (as reported) declined significantly from $742.3 million or $5.52 per share reported in second-quarter 2015.
Barring one-time items including restructuring charges, earnings came in at 69 cents per share in the quarter, topping the Zacks Consensus Estimate of 67 cents. However, adjusted earnings fell year over year by a penny.
Revenues declined 8.7% year over year to $810.3 million in the reported quarter. The figure also missed the Zacks Consensus Estimate of $903 million.
Segment Review
Revenues from the Agricultural Solutions division fell around 12% year over year to $552 million in the quarter owing to lower volumes and currency headwinds. Segment profits were $101 million, down 17% year over year, as lower operating cost was more than offset by lower volumes, lower favorable product mix and currency headwinds.
Health and Nutrition segment’s sales slipped roughly 6% year over year to $195 million in the quarter, hit by reduced Omega-3 sales volume and price. Segment profit fell 11% year over year to $45 million.
Revenues from the Lithium unit went up 15% to $63 million. Segment earnings jumped more than three-fold year over year to $16.5 million, aided by higher volumes and prices, better product mix and lower operating costs.
Balance Sheet
FMC Corp. ended the quarter with cash and cash equivalents of $93.6 million, down around 80.4% year over year. Long-term debt was $1,988.9 million, down 3% year over year.
Outlook
FMC Corp. raised its earnings guidance for 2016 and now sees adjusted earnings in the band of $2.60−$2.90 per share (up from the prior view of $2.55−$2.85 per share) for the year.
The company lowered the revenue expectation for its Agricultural Solutions unit to roughly $2.2−$2.4 billion for 2016, from the previous guidance of $2.3−$2.5 billion. Segment earnings for the year are still expected to be in the band of $380−$420 million. Earnings for the third quarter have been projected in the range of $80−$90 million.
For Health and Nutrition, revenue expectations for 2016 have been lowered to $750−$800 million from the prior estimate of $775−$825 million. The projection for earnings for the year has also been slightly lowered to $190−$196 million (previously between $198 million and $208 million). For the third quarter, segment earnings are expected to be in the band of $44−$48 million.
FMC Corp. now expects earnings for the Lithium unit to be in the band of $58−$66 million for 2016 (up from $43−$53 million expected earlier). For the third quarter, earnings are expected to be in the range of $13−$17 million. Revenues for 2016 are anticipated in the range of $245−$265 million.
FMC CORP Price, Consensus and EPS Surprise
FMC CORP Price, Consensus and EPS Surprise | FMC CORP Quote
FMC Corp. is a Zacks Rank #2 (Buy) stock.
Some better-ranked companies in the chemical space include Axiall Corporation , Shin-Etsu Chemical Co., Ltd. (SHECY - Free Report) and Stepan Company (SCL - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>