- First quarter earnings rise 3 percent to a record $1.22 per diluted
share before restructuring and other income and charges
- Full-year 2009 outlook revised to $4.40 to $4.80 per diluted share
before restructuring and other income and charges
PHILADELPHIA, May 4 /PRNewswire-FirstCall/ -- FMC Corporation (NYSE: FMC)
today reported net income of $69.1 million, or $0.94 per diluted share, in the
first quarter of 2009, versus net income of $93.9 million, or $1.23 per
diluted share, in the first quarter of 2008. Net income in the current
quarter included restructuring and other income and charges of $20.2 million
after-tax, or charges of $0.28 per diluted share, versus restructuring and
other income and charges of $2.7 million after-tax, or a gain of $0.04 per
diluted share, in the prior-year quarter. Excluding these items in both
periods, the company earned $1.22 per diluted share in the current quarter, an
increase of 3 percent versus $1.19 per diluted share in the first quarter of
2008. First quarter revenue of $690.5 million decreased 8 percent versus
$750.2 million in the prior year.
William G. Walter, FMC chairman, president and chief executive officer,
said, "In the first quarter, we delivered record earnings per share and met
our expectations. Our strong results were achieved despite the impact of the
global recession, which significantly reduced volumes across several of our
businesses. Agricultural Products' results were driven by strong performance
in North America and Europe. Specialty Chemicals benefited from higher
BioPolymer sales offset by lower lithium volumes. Industrial Chemicals'
performance directly reflected the impact of lower volumes across the
segment."
Revenue in Agricultural Products of $261.4 million was 6 percent lower
than the prior-year quarter, as sales gains in North America and Europe were
more than offset by lower sales in Latin America, primarily Brazil. Segment
earnings of $92.5 million increased 12 percent versus the year-ago quarter,
reflecting stronger performance in North America and Europe coupled with
favorable product and geographic mix, partially offset by lower performance in
Brazil.
Revenue in Specialty Chemicals was $174.6 million, a decrease of 5 percent
versus the prior-year quarter. Higher selling prices in BioPolymer were more
than offset by lower volumes across lithium. Segment earnings of $38.1
million were 4 percent lower than the year-ago quarter, as lower lithium
volumes more than offset strong commercial performance and favorable product
mix in BioPolymer.
Revenue in Industrial Chemicals of $256.0 million declined 12 percent from
the prior-year quarter, as higher selling prices across the segment were more
than offset by volume declines and unfavorable currency translation. Segment
earnings of $22.8 million were 36 percent lower than the year-ago quarter, as
the lower volumes and higher raw material and energy costs more than offset
higher selling prices.
Corporate expense was $11.3 million, as compared to $11.9 million in the
prior-year quarter. Interest expense, net, was $7.0 million, down from $8.7
million in the year-ago quarter. On March 31, 2009, gross consolidated debt
was $668.2 million, and debt, net of cash, was $613.3 million. For the
quarter, depreciation and amortization was $30.3 million and capital
expenditures were $31.0 million.
Outlook
Regarding the outlook for 2009, Walter said, "For the full year 2009, we
have revised our outlook for earnings before restructuring and other income
and charges to $4.40 to $4.80 per diluted share.
"For the second quarter of 2009, we expect earnings before restructuring
and other income and charges of $1.10 to $1.20 per diluted share. In
Agricultural Products, we look for earnings growth in the mid-single digits
driven by strong performance in North America, partially offset by less
favorable agrochemical conditions in Brazil. In Specialty Chemicals, we
expect earnings to be down 10-15 percent, as strong commercial performance in
BioPolymer is more than offset by lower lithium end-use demand and the
one-time impact of several plant outages. In Industrial Chemicals, earnings
are expected to be down 40-50 percent, as higher selling prices across the
segment are more than offset by lower volumes and higher raw material and
energy costs."
FMC will conduct its first quarter conference call and webcast at 11:00
a.m. ET on Tuesday, May 5, 2009. This event will be available live and as a
replay on the web at http://www.fmc.com. Prior to the conference call, the
company will also provide supplemental information on the web including its
2009 Outlook Statement, definitions of non-GAAP terms and reconciliations of
non-GAAP figures to the nearest available GAAP term.
FMC Corporation is a diversified chemical company serving agricultural,
industrial and consumer markets globally for more than a century with
innovative solutions, applications and quality products. The company employs
over 5,000 people throughout the world. The company operates its businesses
in three segments: Agricultural Products, Specialty Chemicals and Industrial
Chemicals.
Safe Harbor Statement under the Private Securities Act of 1995: Statements
in this news release that are forward-looking statements are subject to
various risks and uncertainties concerning specific factors described in FMC
Corporation's 2008 Form 10-K and other SEC filings. Such information
contained herein represents management's best judgment as of the date hereof
based on information currently available. FMC Corporation does not intend to
update this information and disclaims any legal obligation to the contrary.
Historical information is not necessarily indicative of future performance.
FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
(Unaudited, in millions, except per share amounts)
Three Months Ended
March 31, (a)
-------------
2009 2008
---- ----
Revenue $690.5 $750.2
Costs of sales and services 453.9 499.2
Selling, general and administrative expenses 80.1 83.7
Research and development expenses 20.0 21.8
Restructuring and other charges (income) 22.5 (8.3)
---- ----
Total costs and expenses 576.5 596.4
----- -----
Income from operations 114.0 153.8
Equity in (earnings) loss of affiliates (1.7) (0.3)
Interest expense, net 7.0 8.7
--- ---
Income from continuing operations before income
taxes 108.7 145.4
Provision (benefit) for income taxes 33.4 42.2
---- ----
Income from continuing operations 75.3 103.2
Discontinued operations, net of income taxes (4.4) (6.4)
---- ----
Net income $70.9 $96.8
----- -----
Less: Net income attributable to noncontrolling
interests 1.8 2.9
--- ---
Net income attributable to FMC stockholders $69.1 $93.9
===== =====
Amounts attributable to FMC stockholders:
Income from continuing operations, net of tax $73.5 $100.3
Discontinued operations, net of tax (4.4) (6.4)
---- ----
Net income $69.1 $93.9
===== =====
Basic earnings (loss) per common
share attributable to FMC stockholders:
Income from continuing operations $1.01 $1.34
Discontinued operations (0.06) (0.09)
----- -----
Basic earnings per common share $0.95 $1.25
===== =====
Average number of shares used in basic earnings
per share computations 72.3 74.6
==== ====
Diluted earnings (loss) per common
share attributable to FMC stockholders:
Income from continuing operations $1.00 $1.31
Discontinued operations (0.06) (0.08)
----- -----
Diluted earnings per common share $0.94 $1.23
===== =====
Average number of shares used in diluted earnings
per share computations 73.4 76.6
==== ====
-----------
Other Data:
-----------
Capital expenditures $31.0 $32.6
Depreciation and amortization expense $30.3 $31.0
------------------------------------- ----- -----
(a) On January 1, 2009, FMC adopted Statement of Financial Accounting
Standards No. 160, "Noncontrolling Interests in Consolidated Financial
Statements" which changes the accounting and reporting for minority
interests. The standard requires that minority interests be
recharacterized as noncontrolling interests and that we present a
consolidated net income that includes the amount attributable to the
noncontrolling interests for all periods presented.
FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF INCOME FROM CONTINUING
-----------------------------------------------------------
OPERATIONS, EXCLUDING RESTRUCTURING AND OTHER INCOME AND CHARGES
----------------------------------------------------------------
(NON-GAAP)*
-----------
(Unaudited, in millions, except per share amounts)
Three Months Ended
March 31,
---------
2009 2008
---- ----
Revenue $690.5 $750.2
Costs of sales and services 452.0 499.2
Selling, general and administrative expenses 80.1 83.7
Research and development expenses 20.0 21.8
---- ----
Total costs and expenses 552.1 604.7
Income from operations 138.4 145.5
Equity in (earnings) loss of affiliates (1.7) (0.3)
Interest expense, net 7.0 8.7
--- ---
Income from continuing operations before
income taxes, excluding restructuring and
other income and charges 133.1 137.1
Provision for income taxes 42.0 43.0
---- ----
After-tax income from continuing
operations, excluding restructuring and
other income and charges 91.1 94.1
---- ----
Less: Net income attributable to
noncontrolling interests 1.8 2.9
--- ---
After-tax income from continuing operations,
excluding restructuring and other income
and charges, attributable to FMC stockholders* $89.3 $91.2
===== =====
Basic after-tax income from continuing
operations per share, excluding restructuring
and other income and charges, attributable to
FMC stockholders $1.23 $1.22
===== =====
Average number of shares used in basic after-tax
income per share computations 72.3 74.6
==== ====
Diluted after-tax income from continuing
operations per share, excluding restructuring and
other income and charges, attributable to FMC
stockholders $1.22 $1.19
===== =====
Average number of shares used in diluted
after-tax income per share computations 73.4 76.6
==== ====
* The Company believes that the Non-GAAP financial measure "After-tax
income from continuing operations, excluding restructuring and other
income and charges, attributable to FMC stockholders," and its
presentation on a per share basis, provides useful information about the
Company's operating results to investors and securities analysts. The
Company also believes that excluding the effect of restructuring and
other income and charges from operating results allows management and
investors to compare more easily the financial performance of its
underlying businesses from period to period.
Please see the reconciliation of Non-GAAP financial measures to GAAP
financial results.
FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP)
--------------------------------------------------------------------
TO AFTER-TAX INCOME FROM CONTINUING OPERATIONS,
-----------------------------------------------
EXCLUDING RESTRUCTURING AND OTHER INCOME AND CHARGES, ATTRIBUTABLE
------------------------------------------------------------------
TO FMC STOCKHOLDERS (NON-GAAP)
------------------------------
(Unaudited, in millions, except per share amounts)
Three Months Ended
March 31,
---------
2009 2008
---- ----
Net income attributable to FMC stockholders (GAAP) $69.1 $93.9
Discontinued operations, net of income taxes (a) 4.4 6.4
Restructuring and other (income) charges, net (b) 22.5 (8.3)
Purchase accounting inventory fair value impact (c) 1.9 -
Tax effect of restructuring and other
(income) charges and purchase accounting
inventory fair value impact (7.7) (0.8)
Tax adjustments (d) (0.9) -
---- ----
After-tax income from continuing operations,
excluding restructuring and other income
and charges, attributable to FMC Stockholders
(Non-GAAP) $89.3 $91.2
===== =====
Diluted earnings per common share (GAAP) $0.94 $1.23
Discontinued operations per diluted share 0.06 0.08
Restructuring and other (income) charges,
net per diluted share, before tax 0.31 (0.11)
Purchase accounting inventory fair value
impact per diluted share, before tax 0.03 -
Tax effect of restructuring and other
(income) charges and purchase accounting
inventory fair value impact (0.11) (0.01)
Tax adjustments per diluted share (0.01) -
----- -----
Diluted after-tax income from continuing
operations per share, excluding
restructuring and other income and
charges, attributable to FMC stockholders
(Non-GAAP) $1.22 $1.19
===== =====
Average number of shares used in
diluted after-tax income from
continuing operations per share
computations 73.4 76.6
==== ====
(a) Discontinued operations for the three months ended March 31,
2009 and 2008, respectively, primarily includes provisions for
environmental liabilities and legal reserves and expenses
related to previously discontinued operations.
(b) 2009
Restructuring and other charges (income) for the three months
ended March 31, 2009 include charges related to the closure of
our manufacturing operations at our Peroxygens facility in Santa
Clara, Mexico, which is part of our Industrial Chemicals segment
($6.5 million) and our Bayport butyllithium facility which is
part of our Specialty Chemicals segment ($4.1 million). We also
incurred charges related to the realignment of our Alginates
manufacturing operations in our Specialty Chemicals segment
($2.8 million). Additionally, remaining restructuring and other
charges (income) for the three months ended March 31, 2009
primarily include severance charges in our Industrial Chemicals
segment ($1.5 million), asset abandonment charges in our
Agricultural Products segment and Industrial Chemicals segment
($2.5 million and $1.4 million, respectively), charges associated
with further rights acquired from a collaboration and license
agreement in our Agricultural Products segment ($1.0 million) and
charges associated with continuing environmental sites as a Corporate
charge ($1.2 million).
2008
Restructuring and other charges (income) for the three months ended
March 31, 2008 include a net gain associated with the sale of our
major research and development facility in Princeton, New Jersey
($29.6 million) and a gain associated with the sale of our sodium
sulfate assets in Foret which is part of our Industrial Chemicals
segment ($3.6 million). Primarily offsetting these gains were
continued charges related to the closure of our Baltimore agricultural
chemicals facility ($15.8 million), charges associated with continuing
environmental sites as a Corporate charge ($4.9 million) and
restructuring related severance charges in our Agricultural Products
segment and Industrial Chemicals segment ($1.9 million and $1.1
million, respectively).
(c) Charges related to amortization of the inventory fair value step-up
resulting from the application of purchase accounting associated with
the third quarter 2008 acquisition in our Specialty Chemicals segment
and the first quarter 2009 acquisition in our Agricultural Products
segment. On the condensed consolidated statements of operations these
charges are included in "Costs of sales and services" for the three
months ended March 31, 2009.
(d) Tax adjustments for the three months ended March 31, 2009 are
primarily related to reductions to our tax liabilities related to
prior year tax matters.
FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------
INDUSTRY SEGMENT DATA
---------------------
(Unaudited, in millions)
Three Months Ended
March 31,
---------
2009 2008
---- ----
Revenue
-------
Agricultural Products $261.4 $277.5
Specialty Chemicals 174.6 183.7
Industrial Chemicals 256.0 290.4
Eliminations (1.5) (1.4)
---- ----
Total $690.5 $750.2
====== ======
Income from continuing operations before income taxes
-----------------------------------------------------
Agricultural Products $92.5 $82.9
Specialty Chemicals 38.1 39.5
Industrial Chemicals 22.8 35.6
Eliminations (0.2) (0.2)
---- ----
Segment operating profit 153.2 157.8
Corporate (11.3) (11.9)
Other income (expense), net (3.6) (3.0)
---- ----
Operating profit from continuing operations before
items noted below: 138.3 142.9
Restructuring and other income (charges), net (a) (22.5) 8.3
Interest expense, net (7.0) (8.7)
Purchase accounting inventory fair value impact (b) (1.9) -
Provision for income taxes (33.4) (42.2)
Discontinued operations, net of income taxes (4.4) (6.4)
---- ----
Net income attributable to FMC stockholders $69.1 $93.9
===== =====
(a) Amounts for the three months ended March 31, 2009 related to
Industrial Chemicals ($10.2 million), Agricultural Products ($4.3
million), Specialty Chemicals ($6.7 million) and Corporate ($1.3
million). Amounts for the three months ended March 31, 2008 related
to Agricultural Products ($17.8 million), Industrial Chemicals ($1.8
million - gain), Specialty Chemicals ($0.3 million) and Corporate
($24.6 million - gain).
See Note (b) to the schedule "Reconciliation of Net Income
Attributable to FMC Stockholders (GAAP) to After-Tax Income from
Continuing Operations Excluding Restructuring and Other Income and
Charges (Non-GAAP)" for further details on the components that make
up this line item.
(b) See Note (c) to the schedule "Reconciliation of Net Income
Attributable to FMC Stockholders (GAAP) to After-Tax Income from
Continuing Operations Excluding Restructuring and Other Income and
Charges (Non-GAAP)" for further details on the components that make
up this line item.
FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(Unaudited, in millions)
March 31, December 31,
2009 2008
---- ----
Cash and cash equivalents $54.9 $52.4
Trade receivables, net 724.8 687.7
Inventories 409.6 380.8
Other current assets 136.5 135.0
Deferred income taxes 155.1 176.9
----- -----
Total current assets 1,480.9 1,432.8
Property, plant and equipment, net 915.6 939.2
Goodwill 194.9 197.0
Deferred income taxes 236.9 243.6
Other long - term assets 191.7 181.3
----- -----
Total assets $3,020.0 $2,993.9
======== ========
Short - term debt $48.5 $28.6
Current portion of long - term debt 1.9 2.1
Accounts payable, trade and other 305.4 372.3
Guarantees of vendor financing 23.7 20.3
Accrued pensions and other post-retirement
benefits, current 10.2 10.2
Other current liabilities 333.0 325.6
----- -----
Total current liabilities 722.7 759.1
Long-term debt 617.8 592.9
Long-term liabilities 671.8 675.5
Equity (a) 1,007.7 966.4
------- -----
Total liabilities and equity $3,020.0 $2,993.9
======== ========
(a) On January 1, 2009, FMC adopted Statement of Financial Accounting
Standards No. 160, "Noncontrolling Interests in Consolidated Financial
Statements" which changes the accounting and reporting for minority
interests. The standard requires that minority interests be
recharacterized as noncontrolling interests and classified as a
component of equity.
FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES
---------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
----------------------------------------------
(Unaudited, in millions)
Three Months Ended
March 31,
---------
2009 2008
---- ----
Cash provided (required) by operating activities $24.8 $(54.5)
----- ------
Cash (required) by operating activities of
discontinued operations (9.6) (11.9)
---- -----
Cash provided (required) by investing activities:
Capital expenditures (31.0) (32.6)
Other investing activities (13.4) 77.2
----- ----
(44.4) 44.6
----- ----
Cash provided (required) by financing activities:
Net borrowings under committed credit facilities 41.0 58.0
Increase (decrease) in short-term debt 20.3 6.7
Proceeds from borrowings 11.8 -
Repayments of long-term debt (23.1) (7.4)
Distributions to noncontrolling interests (8.4) (5.7)
Dividends paid (9.1) (7.9)
Repurchases of common stock (1.1) (31.6)
Issuances of common stock, net 0.7 4.4
--- ---
32.1 16.5
---- ----
Effect of exchange rate changes on cash (0.4) 0.2
---- ---
Increase (decrease) in cash and cash equivalents 2.5 (5.1)
Cash and cash equivalents, beginning of year 52.4 75.5
---- ----
Cash and cash equivalents, end of period $54.9 $70.4
===== =====
SOURCE FMC Corporation
CONTACT: Media, Jim Fitzwater, +1-215-299-6633, or Investor relations,
Brennen Arndt +1-215-299-6266, both of FMC Corporation
Web Site: http://www.fmc.com
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