Chemical company FMC Corporation ( FMC ) said that it has secured exclusive rights to a patented, broad-spectrum crop protection product from Bayer CropScience, the subgroup of Bayer AG ( BAYRY ). Bayer CropScience is among the leading innovative crop science companies in the areas of seeds, crop protection and non-agricultural pest control.
Under the agreement, FMC Corp. will develop and distribute the promising new crop protection product for row crops in the U.S. and Canada. The agreement underscores the increasing collaboration between FMC Corp. and Bayer CropScience and their success in brining novel crop protection technologies to farmers. Financial terms of the deal were undisclosed.
FMC Corp. will begin product development and the registration process in 2014. It expects to launch the product in the next two to three years.
FMC Corp., which has annual sales of roughly $3.7 billion, is a leading diversified chemical company that serves agricultural, industrial, environmental and consumer markets across the globe. It is a leading maker of Lithium-based materials for primary and rechargeable batteries used in laptops, cellular phones and electric cars.
FMC Corp. reported its first-quarter 2013 results in Apr 2013. Its adjusted earnings of $1.10 per share beat the Zacks Consensus Estimate by a couple of cents. Profit, as reported, rose roughly 10% year over year to $130.9 million or 94 cents per share on healthy performance of the company's Agricultural Products and Specialty Chemicals segments. Revenues went up 5% year over year to $990.2 million but missed the Zacks Consensus Estimate of $1,016 million.
FMC Corp., in the first quarter earnings call, said that it is realigning its portfolio around three core platforms - FMC Agricultural Solutions, FMC Health and Nutrition, and FMC Minerals. As part of the move, the company is exploring the divestiture of its Peroxygens business.
FMC Corp. currently retains a short-term Zacks Rank #3 (Hold).
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