) adjusted earnings (excluding one-time items) came in at 92 cents
per share in the second quarter of 2012 compared with 77 cents in
the year-ago quarter. The results exceeded the Zacks Consensus
Estimate of 90 cents.
After including one-time expenses, the company reported earnings
of 76 cents per share, up 2.7% from 74 cents in the year ago
Sales jumped 11.5% year over year to $905.2 million in the
quarter, but missed the Zacks Consensus Estimate of $906 million.
Sales were aided by strong growth of agricultural Products and
higher demand in Latin America.
Agricultural Products -
Revenues rose 19% year over year to $393.6 million, driven by
higher demand in Latin America and North America. Earnings jumped
18% to $111.2 million on the back of strong volume growth,
partially offset by higher spending on targeted growth
Specialty Chemicals -
Revenues increased 3% to $235.4 million in the quarter. Higher
selling prices were offset by unfavorable currency impact (due to
the weakening euro) in the BioPolymer business. Earnings fell 6% to
$52.7 million, due to increased raw material costs, continuing
impacts of operational issues in Lithium that started in the first
quarter and increased investment to support growth initiatives in
Industrial Chemicals -
Revenues increased 9% to $277.1 million on higher selling prices
and higher volumes. Earnings for the segment increased 18% to $42.8
million due to favorable mix shift in Peroxygens toward specialties
The company's cash and cash equivalents stood at $75.5 million
as of June 30, 2012, compared with $158.9 million as of December
31, 2011. Long-term debt was $810 million as of June 30, 2012,
compared with $779.1 million as of December 31, 2011.
FMC Corporation, on August 1, 2012, signed a deal with Pectine
Italia S.p.A., an Italy-based manufacturer of pectin for the food
ingredients market,to acquire its assets for undisclosed terms.
Pectine Italia produces pectin, a gelling and thickening agent used
widely in many foods. The deal will not only expand FMC
Corporation's global footprint, but will also offer a strategic
advantage due to the company's entry into the pectin market,
thereby increasing its portfolio of innovative food
Upon completion of the acquisition, Pectine Italia's pectin
business will become part of FMC BioPolymer, a business unit within
FMC Corporation's Specialty Chemicals division. The deal is
expected to be completed by the third quarter of 2012.
For the third quarter of 2012, FMC Corporation expects adjusted
earnings to be in the range of 70 cents to 80 cents per share. For
2012, the company expects adjusted earnings to be in the range of
$3.42 to $3.52 per share
FMC Corporation is one of the prominent players in the
agrochemical space along with
E. I. du Pont de Nemours and Company
The Dow Chemical Company
). Currently, FMC Corporation maintains a Zacks #3 Rank, which
translates into a short-term (1 to 3 months) "Hold" rating.
DU PONT (EI) DE (DD): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis Report
FMC CORP (FMC): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis
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