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Fmc Corporation Updates Third-Quarter And Full-Year 2015 Outlook

The following excerpt is from the company's SEC filing.

Rapid devaluation of Brazilian real negatively impacting second-half 2015 outlook

Performance of all businesses other than Agricultural Solutions Latin America in line with prior expectations

Brazil operations to be restructured to align with current market conditions

Global corporate costs to be further reduced

Cheminova integration accelerated and additional cost savings identified

Annual run-rate cost reduction from all actions of $140 to $160 million, compared to prior target of $90 million

- FMC Corporation (NYSE:

) today announced that, due to the recent rapid devaluation of the Brazilian real, the company is reducing third-quarter and full-year outlook for its Agricultural Solutions segment. The company expects third-quarter segment earnings of $59 million and fourth-quarter segment earnings to be in the range of $110 to $130 million. Assuming an adjusted tax rate of 27 percent, adjusted earnings are expected to be $0.38 per share for the third quarter and in the range of $2.35 to $2.45 per share for the full year.

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Page 2/FMC Corporation Updates Third-Quarter and Full-Year 2015 Outlook

A rapid devaluation of the Brazilian real, which depreciated over 50 percent versus the U.S. dollar in the past 12 months, and over 25 percent versus the U.S. dollar during the third quarter alone, has created significant headwinds that will continue to impact Agricultural Solutions segment earnings in the second half of 2015. Customer-held inventory levels remain elevated, limiting FMC’s ability to increase prices quickly enough to fully offset the impact of these currency movements. During the third quarter, FMC recovered approximately 40 percent of the foreign exchange impact through price increases. The company estimates that the devaluation of the Brazilian real in the second half of 2015 will reduce segment earnings by between $200 million and $240 million, which will be partially offset by price increases of $90 million to $110 million.

FMC is announcing several targeted measures to reduce...


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