|FMC Corporation CEO Addresses Winning 'Differentiator Strategy' at Credit Suisse Global Ag Productivity Conference|
Unique Business Strategy Propels FMC Agricultural Products to Eight Consecutive Years of Record Earnings
"We have a winning differentiator strategy that broke an industry paradigm," said Brondeau. "The conventional paradigm is -- if you want to be successful in the agricultural industry, you either have to invent new active molecules or biotech products, or you need to be a generic company and compete on cost.
"We believed we could do both -- that we could do innovation our way and be globally cost competitive with anybody in the industry. And we have," said Brondeau. "This low-cost innovation strategy has worked very well for us."
In 2011, FMC Agricultural Products sales grew 18 percent to
FMC's innovation strategy is based on "aggregating technologies" where the company scouts the world for complementary technologies and products and applies them to key focus markets such as sugar cane, cotton, rice, oilseeds, fruits and vegetables. FMC creates new formulations with lasting proprietary position by blending them with other products in the portfolio.
To help significantly reduce costs, the business developed a virtual manufacturing operation built from a network of dedicated contract manufacturers and toll producers, largely in Asia. According to Brondeau, FMC does not own assets that produce agricultural active ingredients. The business cost structure is more than 90 percent variable.
"It takes years to build a virtual manufacturing network, and our network is made of true partners -- not suppliers at arm's length. Most have been with us for 10-15 years," said Brondeau. "We have 100 FMC employees in
As part of the company's Vision 2015 growth strategy, FMC Agricultural Products expects to continue delivering premium margins in the 25 percent range with sales increasing to
For the full presentation at the
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
Media, Jim Fitzwater, +1-215-299-6633, or Investor relations, Brennen Arndt, +1-215-299-6266