Chemical makers FMC Corp. (FMC - Free Report) and BASF have landed a deal to bring next-generation in-furrow crop protection products to the U.S. corn market. Under the pact, the companies will combine their insect and disease protection technologies into new products formulated leveraging the LFR patented technology from FMC Corp.
The partnership integrates the core competencies of two market leaders. FMC Corp. is a leader in in-furrow formulations technology while BASF is a fungicide active ingredient leader.
The companies will offer new products under the agreement. FMC Corp. will launch Temitry LFR insecticide/fungicide for 2017 while BASF will launch Manticor LFR in-furrow fungicide/insecticide. EPA registration has been received for these new products. The companies noted that these new solutions will sustainably feed a growing global population.
These products include market-leading active ingredients, the same technology found in BASF’s Headline fungicide and in FMC proprietary LFR formulations in Capture LFR Insecticide. The unique and convenient LFR technology mixes readily with liquid fertilizers, offers consistent active ingredient distribution and stays in suspension for uniform application, the companies noted.
FMC Corp.’s shares closed roughly 2.2% higher at $53.59 on Nov 7.
FMC Corp. swung to a profit of $79.7 million or 59 cents per share in third-quarter 2016 from a loss of $2.4 million or 2 cents per share a year ago. Adjusted earnings of 67 cents per share topped the Zacks Consensus Estimate of 58 cents. Revenues fell roughly 3% year over year to $807.7 million and matched expectations.
Revenues from FMC Corp.’s Agricultural Solutions division fell around 3% year over year to $558.9 million in the quarter on lower volumes. Segment profits jumped 52% year over year as improved pricing and favorable currency impact more than offset higher costs and reduced sales volumes. FMC Corp. sees earnings for the fourth quarter for the division in the range of $117−$137 million.
FMC Corp. sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Other well-placed companies in the basic materials space include Innophos Holdings Inc (IPHS - Free Report) , Koppers Holdings Inc. (KOP - Free Report) and Celanese Corporation (CE - Free Report) .
Innophos holds a Zacks Rank #1. The company has an expected earnings growth of 51.4% for the current year.
Koppers has an expected earnings growth of around 63.9% for the current year. The stock carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese carries a Zacks Rank #2 (Buy) and has an expected earnings growth of around 9.4% for the current year.
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