FMC Corporation (FMC) Bundle
A Brief History of FMC Corporation
Company Overview
FMC Corporation, a global leader in the agricultural sciences sector, specializes in crop protection, plant health, and professional pest control solutions. As of 2024, FMC operates in over 100 countries and has a diverse portfolio of products that serve various market needs.
Financial Performance
In the third quarter of 2024, FMC reported revenue of $1,065.4 million, up from $981.9 million in the same quarter of 2023. The nine-month revenue for 2024 stood at $3,021.8 million compared to $3,340.7 million for the same period in 2023.
| Period | Revenue (in Millions) | Costs of Sales (in Millions) | Gross Margin (in Millions) | Net Income (in Millions) |
|---|---|---|---|---|
| Q3 2024 | $1,065.4 | $679.0 | $386.4 | $65.6 |
| Q3 2023 | $981.9 | $600.7 | $381.2 | ($3.7) |
| 9M 2024 | $3,021.8 | $1,897.6 | $1,124.2 | $357.7 |
| 9M 2023 | $3,340.7 | $1,945.4 | $1,395.3 | $224.6 |
Stock Performance
As of September 30, 2024, FMC's stock was trading at approximately $63.14 per share. The company had an authorized repurchase program allowing for the repurchase of up to $1 billion in common stock, with $825 million remaining as of that date.
Key Developments
- In March 2024, FMC faced a legal setback when the Beijing IP Court dismissed its challenges to the invalidation of patents related to chlorantraniliprole production.
- The company projected free cash flow for 2024 to be between $400 million and $500 million, reflecting a significant increase year-over-year.
- FMC is undergoing a transformation initiative called Project Focus, which aims to enhance operational efficiency and streamline costs.
Stockholder Equity
As of September 30, 2024, FMC's stockholders' equity totaled $4,630.1 million, comprising common stock valued at $18.6 million, capital in excess of par at $960.9 million, and retained earnings of $6,726.4 million.
| Component | Value (in Millions) |
|---|---|
| Common Stock | $18.6 |
| Capital in Excess of Par | $960.9 |
| Retained Earnings | $6,726.4 |
| Accumulated Other Comprehensive Income (Loss) | ($373.4) |
| Treasury Stock | ($2,724.7) |
| Total Equity | $4,630.1 |
2024 Outlook
FMC expects full-year 2024 revenue to range from $4.33 billion to $4.44 billion, reflecting a modest decline from the previous year. The adjusted EBITDA for 2024 is anticipated to be between $885 million and $915 million, with adjusted earnings projected at $3.16 to $3.52 per diluted share.
A Who Owns FMC Corporation (FMC)
Major Shareholders
As of 2024, the ownership structure of FMC Corporation is characterized by a mix of institutional and individual investors. The largest shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares (in millions) |
|---|---|---|
| Institutional Investors | 86.5% | 108.1 |
| Mutual Funds | 19.4% | 24.1 |
| Individual Investors | 12.2% | 15.3 |
| Insider Ownership | 1.3% | 1.6 |
Top Institutional Investors
The following table lists the top institutional investors in FMC Corporation as of September 2024:
| Institution | Shares Held (in millions) | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 28.3 | 22.7% |
| The Vanguard Group, Inc. | 25.1 | 20.3% |
| State Street Corporation | 15.9 | 12.9% |
| Invesco Ltd. | 9.2 | 7.5% |
| Wellington Management Group LLP | 8.3 | 6.7% |
Recent Changes in Ownership
In 2024, FMC Corporation saw a slight decrease in insider ownership as a result of stock options exercised. The company's board authorized a stock repurchase program that remains active, with $825 million available for share buybacks as of September 30, 2024.
Share Performance and Dividends
FMC Corporation has consistently paid dividends, with a total of $72.8 million distributed to shareholders in October 2024. The company paid dividends of $0.58 per share. The stock performance has been relatively stable, with the share price around $63.14 as of late September 2024.
Market Capitalization
As of September 30, 2024, FMC Corporation's market capitalization was approximately $7.4 billion, reflecting a strong presence in the agricultural and chemical sectors.
Ownership Summary
The ownership landscape of FMC Corporation indicates a strong institutional presence, which plays a significant role in the governance and financial decisions of the company. The diverse shareholder base contributes to a balanced approach to corporate management and strategy implementation.
FMC Corporation (FMC) Mission Statement
FMC Corporation is a global agricultural sciences company dedicated to helping growers produce food, feed, fiber, and fuel for an expanding world population while adapting to a changing environment. The company operates in a single distinct business segment, developing, marketing, and selling all three major classes of crop protection chemicals (insecticides, herbicides, and fungicides), alongside biologicals, crop nutrition, and seed treatment products.
Mission Statement Overview
FMC's mission emphasizes innovation in crop protection solutions that enable growers, crop advisers, and turf and pest management professionals to address their toughest challenges economically without compromising safety or the environment. The company is committed to discovering new active ingredients, product formulations, and pioneering technologies that are consistently better for the planet.
Key Financial Metrics (2024)
| Metric | Value |
|---|---|
| 2024 Revenue Estimate | $4.33 billion to $4.44 billion |
| Adjusted EBITDA | $885 million to $915 million |
| Adjusted Earnings per Share | $3.16 to $3.52 |
| Net Income (Q3 2024) | $65.6 million |
| Net Income (Nine Months Ended September 30, 2024) | $357.7 million |
| Basic Earnings per Share (Q3 2024) | $0.52 |
| Gross Margin (Q3 2024) | $386.4 million |
| Research and Development Expenses (Q3 2024) | $69.0 million |
| Selling, General and Administrative Expenses (Q3 2024) | $159.2 million |
Regional Revenue Breakdown (Q3 2024)
| Region | Revenue (in Millions) |
|---|---|
| North America | $235.5 |
| Latin America | $504.1 |
| Europe, Middle East & Africa (EMEA) | $139.3 |
| Asia | $186.5 |
Recent Developments
FMC initiated a global restructuring plan named "Project Focus" in November 2023 to optimize its cost base and organizational structure in response to challenges in the global crop protection market. This plan is aimed at driving significant cost improvements and productivity.
Market Challenges and Strategic Focus
The company faced a 10% decrease in revenue year-over-year for the nine months ended September 30, 2024, primarily due to a reduction in volumes and pricing pressures in key markets. Despite these challenges, FMC anticipates growth from new products and additional cost benefits from its restructuring program.
Financial Performance Summary
For the third quarter of 2024, FMC reported a revenue of $1,065.4 million, representing a 9% increase from the previous year. The increase in revenue was driven by a 17% growth in volumes, although this was partially offset by a 5% price decrease. The company also experienced foreign currency headwinds amounting to approximately 3% during the period.
Future Outlook
FMC projects that full-year 2024 adjusted earnings will decrease by approximately 12% at the midpoint compared to 2023, emphasizing the importance of strategic adjustments to navigate market fluctuations and maintain growth.
How FMC Corporation (FMC) Works
Overview of FMC Corporation
FMC Corporation operates as a global agricultural sciences company, focusing on innovative solutions for crop protection, plant health, and nutrient management. The company is structured into three primary segments: Crop Protection, Plant Health, and Plant Nutrients.
2024 Financial Performance
For the three months ended September 30, 2024, FMC reported revenue of $1,065.4 million, which represents an increase of 9% compared to the same period in 2023. The nine-month revenue totaled $3,021.8 million, reflecting a decrease of 10% year-over-year.
| Region | Q3 2024 Revenue (Millions) | Q3 2023 Revenue (Millions) | 9M 2024 Revenue (Millions) | 9M 2023 Revenue (Millions) |
|---|---|---|---|---|
| North America | $235.5 | $159.6 | $833.4 | $929.4 |
| Latin America | $504.1 | $466.1 | $999.3 | $968.4 |
| EMEA | $139.3 | $149.0 | $647.3 | $739.6 |
| Asia | $186.5 | $207.2 | $541.8 | $703.3 |
| Total Revenue | $1,065.4 | $981.9 | $3,021.8 | $3,340.7 |
Cost Structure and Profitability
The cost of sales for Q3 2024 was $679.0 million, leading to a gross margin of $386.4 million. This represents a gross margin percentage of approximately 36%, down from 39% in the previous year. Selling, general, and administrative expenses were $159.2 million, a decrease of 7% from the prior year, and R&D expenses totaled $69.0 million.
Net Income and Earnings Per Share
FMC's net income attributable to stockholders for Q3 2024 was $65.0 million, compared to a net loss of $3.5 million in Q3 2023. The basic earnings per share for continuing operations was $0.53, up from $0.04 in the prior year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (Millions) | $65.0 | ($3.5) | $357.4 | $223.0 |
| Basic EPS | $0.52 | ($0.03) | $2.85 | $1.78 |
Research and Development
FMC continues to invest in R&D, with expenses totaling $69.0 million for Q3 2024. This reflects a strategic focus on developing new products and enhancing existing formulations.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, FMC reported cash provided by operating activities of $373.9 million. The company also paid dividends totaling $217.9 million during the same period.
Outlook for 2024
FMC projects full-year 2024 revenue to be in the range of $4.33 billion to $4.44 billion, with adjusted EBITDA expected between $885 million to $915 million. The anticipated adjusted earnings per share is forecasted to be between $3.16 to $3.52.
Balance Sheet Highlights
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets (Millions) | $12,218.7 | $11,926.2 |
| Total Liabilities (Millions) | $7,588.6 | $7,492.8 |
| Total Equity (Millions) | $4,630.1 | $4,433.4 |
How FMC Corporation (FMC) Makes Money
Revenue Breakdown
FMC Corporation generates revenue primarily through the sale of agricultural solutions, including crop protection products and specialty chemicals. For the three months ended September 30, 2024, FMC reported total revenue of $1,065.4 million, which represents an increase of approximately 9 percent compared to the same period in 2023. The revenue for the nine months ended September 30, 2024, was $3,021.8 million, a decrease of around 10 percent year-over-year. The decrease was primarily driven by a 2 percent decline in volumes and unfavorable pricing actions.
| Region | Q3 2024 Revenue (in Millions) | Q3 2023 Revenue (in Millions) | 9M 2024 Revenue (in Millions) | 9M 2023 Revenue (in Millions) |
|---|---|---|---|---|
| North America | $235.5 | $159.6 | $833.4 | $929.4 |
| Latin America | $504.1 | $466.1 | $999.3 | $968.4 |
| Europe, Middle East & Africa (EMEA) | $139.3 | $149.0 | $647.3 | $739.6 |
| Asia | $186.5 | $207.2 | $541.8 | $703.3 |
Cost Structure
FMC’s costs for the three months ended September 30, 2024, totaled $929.8 million, which includes costs of sales and services of $679.0 million and selling, general and administrative expenses of $159.2 million. For the nine months ended September 30, 2024, total costs reached $2,749.9 million.
Gross Margin and Profitability
The gross margin for the third quarter of 2024 was $386.4 million, representing a gross margin percentage of approximately 36 percent, down from 39 percent in the previous year. The decline is attributed to pricing pressure and increased costs.
Net income attributable to FMC stockholders for Q3 2024 was $65.0 million, compared to a net loss of $3.5 million in Q3 2023. This increase was primarily driven by cost reduction measures implemented under the Project Focus initiative, which reduced selling, general, and administrative expenses.
Adjusted EBITDA
For Q3 2024, FMC reported an Adjusted EBITDA of $201.4 million, which reflects a 15 percent increase year-over-year. The nine-month Adjusted EBITDA for 2024 was $563.7 million, down 22 percent from the prior year, largely due to lower sales volumes and unfavorable pricing.
Market Challenges and Strategies
FMC faced challenges including channel destocking, unfavorable pricing in Latin America, and foreign currency headwinds estimated at 3 percent for Q3 2024. Despite these challenges, FMC is focusing on new product growth and cost-saving measures to enhance profitability.
Outlook for 2024
FMC expects full-year 2024 revenue to be in the range of $4.33 billion to $4.44 billion, reflecting a slight decrease compared to 2023. Adjusted EBITDA for the year is projected between $885 million and $915 million, indicating a decrease of approximately 8 percent at the midpoint versus 2023.
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Article updated on 8 Nov 2024
Resources:
- FMC Corporation (FMC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of FMC Corporation (FMC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View FMC Corporation (FMC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.