FMC Corporation announces second quarter 2012 results
Wednesday, Aug 01, 2012
PHILADELPHIA, July 31, 2012 /PRNewswire/ -- FMC Corporation (NYSE:FMC) today reported second quarter sales of $905.2 million, an 11 percent increase over the same period in 2011. The company reported net income of $104.9 million, or $0.76 per diluted share, in the second quarter of 2012, versus net income of $107.2 million, or $0.74 per diluted share, in the second quarter of 2011. This quarter's results include charges of $22.0 million after tax, or $0.16 per diluted share, compared to charges of $3.3 million after tax, or $0.03 per diluted share, in the prior-year quarter. Excluding these items in both periods, adjusted earnings were $0.92 per diluted share in the current quarter, an increase of 20 percent versus the prior-year quarter.
Pierre Brondeau, FMC president, CEO and chairman, said, "Our second quarter 2012 results continue to demonstrate the strength of FMC's advantaged portfolio. Agricultural Products showed vigorous growth, driven by overall strong conditions in North America and continued robust demand in Latin America. Specialty Chemicals' results were down slightly as expected, with the continuing impacts of the operational issues we faced in our Lithium business in the first quarter offsetting steady performance from our BioPolymer business. Industrial Chemicals delivered another double-digit increase in earnings, driven by higher selling prices across the segment, particularly in soda ash, higher volumes, and the continued shift toward specialties in the Peroxygens business."
Revenue in Agricultural Products of $393.6 million increased 19 percent versus the prior-year quarter with substantial sales gains in Latin America and North America. In Latin America, sales increased significantly, driven by continued strength in sugar cane, growth in soybeans, and sales from our new market access joint venture in Argentina. In North America, sales also increased significantly due to strong demand for proprietary herbicides, higher insecticide sales, and increased non-crop sales. Asia and Europe/Middle East/Africa sales were marginally down versus the prior-year period. Segment earnings of $111.2 million increased 18 percent versus the year-ago quarter driven by strong volume growth, partially offset by higher spending on targeted growth initiatives.
Revenue in Specialty Chemicals was $235.4 million, up 3 percent versus the year-ago quarter as higher selling prices across all businesses were partially offset by unfavorable exchange rate impacts from the weakening euro on the BioPolymer business. Segment earnings were down 6 percent to $52.7 million, as anticipated, with higher prices across the segment more than offset by the continuing impacts of first quarter operational issues in Lithium, higher raw material costs in BioPolymer, increased investment to support growth initiatives in BioPolymer, in particular in natural colors, and unfavorable exchange rate impacts.
Revenue in Industrial Chemicals of $277.1 million increased 9 percent from the year-ago quarter, driven by higher selling prices and volume growth across the segment. Segment earnings of $42.8 million increased 18 percent as a result of the sales gains and the continued favorable mix shift in Peroxygens toward specialties markets.
Corporate expense was $14.7 million versus $15.6 million in the prior-year quarter. Interest expense, net, was $11.5 million as compared to $10.5 million in the year-ago quarter. On June 30, 2012, gross consolidated debt was $856.5 million, and debt, net of cash, was $781.0 million. For the quarter, depreciation and amortization was $34.5 million and capital expenditures were $42.4 million.
SOURCE FMC Corporation