FMC agrochem sales up 11% in Q3

By CnAgri2012-10-31 19:17:31 Print

Despite the uncertain global economic environment, FMC delivered another robust quarter. Sales in Agricultural Products segment were $423.6 million increased 10.9% in the third quarter of 2012 versus the prior-year with substantial sales gains in Latin America and North America. Segment earnings of $99.8 million increased 23.4% versus the year-ago quarter driven by strong volume growth, partially offset by unfavorable exchange rate impacts and higher spending on targeted growth initiatives. Sales of this segment in the first nine months were $1,271.4 million, up by 20.5% compared with same period of 2011. While earnings rose by 23.6% to $340.8 million.

In Latin America, sales increased significantly, reflecting strong market conditions, successful new product introductions and increased planted area for soybeans in Brazil, and increased sales via FMC’s market access joint venture in Argentina.  In North America, sales also increased significantly driven by strong pest pressures. Sales in Asia were up slightly, while sales in Europe/Middle East/Africa were down versus the prior-year period, in part due to unfavorable exchange rate impacts.

Outlook

FMC expects its Agricultural Products segment to achieve its ninth consecutive year of record earnings, delivering a mid-twenties percent year-on-year increase in earnings, reflecting increased volumes in all regions, due to strong market conditions and growth from new and acquired products, but partially offset by higher spending on targeted growth initiatives.

Segment earnings are expected to be up in the mid- to high-twenties percent reflecting strong growth in Latin America, especially Brazil, partially offset by continued investment in targeted growth initiatives.