PHILADELPHIA, Nov. 2, 2016 /PRNewswire/ --
Third Quarter 2016 Highlights
- Consolidated revenue of $808
million
- Consolidated GAAP earnings per diluted share of $0.59
- Consolidated adjusted earnings per diluted share of
$0.67
- Agricultural Solutions segment earnings of $90 million
- Health and Nutrition segment earnings of $45 million
- Lithium segment earnings of $18
million
- Increasing guidance for 2016 adjusted earnings per diluted
share by 6 cents at the mid-point of
the range to $2.76 to
$2.861
FMC Corporation (NYSE: FMC) today reported third quarter 2016
net income per diluted share of $0.59, as compared to a net loss per diluted
share of $0.02 in the third quarter
of 2015. Excluding various restructuring charges, adjusted
earnings were $0.67 per diluted
share for the third quarter of 2016, compared to adjusted
earnings of $0.42 per diluted share
for the prior year quarter.
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Pierre Brondeau, FMC president, CEO and chairman said:
"FMC delivered another strong quarter, reporting adjusted earnings
per share above the top end of guidance. Ag Solutions had a
solid quarter, particularly in Latin
America, reporting segment earnings at the top end of prior
guidance. Lithium outperformed, increasing earnings by
$16 million compared to the prior
year quarter. Lithium's performance reflects the success of
FMC's strategy to focus on higher value downstream specialty
products. Health and Nutrition delivered strong margins, but
revenue was below expectations. Overall, I am very
pleased with the execution of our strategy. With just one
quarter to go in the year, we are tightening our guidance for 2016
adjusted earnings per diluted share and raising the mid-point of
the range by 6 cents per diluted
share to $2.76 to $2.86."
FMC Agricultural Solutions
FMC Agricultural Solutions reported third quarter revenue of
$559 million and segment earnings of
$90 million. Third quarter
segment revenue declined 3 percent year-over-year, principally due
to lower sales volume from market weakness and product
rationalization, offset partially by price increases. Segment
earnings increased 52 percent compared to results for third quarter
2015, as the impact of better pricing and positive foreign exchange
offset the lower sales volumes and higher costs.
For the full year, segment revenue is expected to be in the
range of $2.2 billion to $2.4 billion
and segment earnings are expected to be in the range of
$390 million to $410 million.
Fourth quarter segment earnings are expected to be in the range of
$117 million to $137 million, up 26
percent at the mid-point of the range.
FMC Health and Nutrition
FMC Health and Nutrition reported third quarter segment revenue
of $179 million and segment earnings
of $45 million. Revenue
declined 9 percent and segment earnings declined 4 percent compared
to the third quarter 2015 largely due to lower revenue in Omega 3
and timing of sales in Asia and
Europe.
Segment revenue for the full year is expected to be between
$740 and $760 million and 2016
segment earnings are expected to be between $190 and $194 million. For the fourth
quarter, segment earnings are expected to be between $53 and $57 million, up 19 percent at the
mid-point of the range.
FMC Lithium
FMC Lithium reported third quarter segment revenue of
$70 million, an increase of 22
percent from the prior-year quarter. Segment earnings
increased to $18 million in the
quarter versus $2 million in the
prior-year quarter. Higher average prices in all major
products, lower operating costs and the devaluation of the
Argentinean peso all contributed to the increase in segment
earnings.
For the full year 2016, segment revenue is expected to be in the
range of $265 million to $275
million. 2016 segment earnings are expected to be
between $65 and $69 million,
$5 million higher than previous
guidance at the mid-point. Segment earnings for the fourth
quarter are expected to be in the range of $16 million to $20 million, up 62 percent
year-over-year at the mid-point of the range.
Webcast and Supplemental Information
The company will post supplemental information on the web at
www.FMC.com, including its 2016 Outlook Statement, definitions of
non-GAAP terms and reconciliations of non-GAAP figures to the
nearest available GAAP term.
About FMC
For more than a century, FMC Corporation has served
the global agricultural, industrial and consumer markets with
innovative solutions, applications and quality products. FMC
acquired Cheminova in April 2015. Revenue totaled
approximately $3.3 billion in 2015. FMC employs
approximately 6,000 people throughout the world and operates its
businesses in three segments: FMC Agricultural Solutions, FMC
Health and Nutrition and FMC Lithium. For more information,
visit www.FMC.com.
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 2015 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.
This press release contains certain "non-GAAP financial
terms" which are defined on our website www.fmc.com. In
addition, we have also provided on our website at www.fmc.com
reconciliations of non-GAAP terms to the most directly comparable
GAAP term. Amounts in this release focus on Adjusted Earnings
for all EBIT and EPS references.
- Although we do provide forecasts for adjusted earnings per
share and adjusted cash from operations (both of which are non-GAAP
financial measures), we are not able to forecast the most directly
comparable measures calculated and presented in accordance with
GAAP. Certain elements of the composition of the GAAP amounts
are not predictable, making it impractical for us to
forecast. Such elements include, but are not limited to
restructuring, acquisition charges, and discontinued operations and
related cash activity. As a result, no GAAP outlook is
provided.
FMC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited, in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
$
|
807.7
|
|
$
|
830.7
|
|
$
|
2,416.8
|
|
$
|
2,377.2
|
|
|
|
|
|
|
|
|
Costs of sales and
services
|
528.2
|
|
610.4
|
|
1,554.6
|
|
1,600.4
|
|
|
|
|
|
|
|
|
Gross
margin
|
279.5
|
|
220.3
|
|
862.2
|
|
776.8
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
117.8
|
|
137.0
|
|
373.4
|
|
590.9
|
Research and
development expenses
|
32.2
|
|
37.2
|
|
103.3
|
|
102.8
|
Restructuring and
other charges (income)
|
14.4
|
|
45.6
|
|
39.1
|
|
78.2
|
Total costs and
expenses
|
692.6
|
|
830.2
|
|
2,070.4
|
|
2,372.3
|
Income (loss) from
operations
|
115.1
|
|
0.5
|
|
346.4
|
|
4.9
|
Equity in (earnings)
loss of affiliates
|
(0.4)
|
|
—
|
|
(0.4)
|
|
—
|
Interest expense,
net
|
20.3
|
|
20.2
|
|
61.1
|
|
58.9
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
95.2
|
|
(19.7)
|
|
285.7
|
|
(54.0)
|
Provision (benefit)
for income taxes
|
12.6
|
|
(25.1)
|
|
75.5
|
|
(56.4)
|
Income (loss) from
continuing operations
|
82.6
|
|
5.4
|
|
210.2
|
|
2.4
|
Discontinued
operations, net of income taxes
|
(3.0)
|
|
(5.0)
|
|
(14.9)
|
|
698.8
|
Net income
(loss)
|
$
|
79.6
|
|
$
|
0.4
|
|
$
|
195.3
|
|
$
|
701.2
|
Less: Net
income attributable to noncontrolling interests
|
(0.1)
|
|
2.8
|
|
2.1
|
|
8.1
|
Net income (loss)
attributable to FMC stockholders
|
$
|
79.7
|
|
$
|
(2.4)
|
|
$
|
193.2
|
|
$
|
693.1
|
|
|
|
|
|
|
|
|
Amounts
attributable to FMC stockholders:
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations, net of tax
|
$
|
82.7
|
|
$
|
2.6
|
|
$
|
208.1
|
|
$
|
(5.7)
|
Discontinued
operations, net of tax
|
(3.0)
|
|
(5.0)
|
|
(14.9)
|
|
698.8
|
Net income
(loss)
|
$
|
79.7
|
|
$
|
(2.4)
|
|
$
|
193.2
|
|
$
|
693.1
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per common share attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.62
|
|
$
|
0.02
|
|
$
|
1.55
|
|
$
|
(0.04)
|
Discontinued
operations
|
(0.03)
|
|
(0.04)
|
|
(0.11)
|
|
5.22
|
Basic earnings
per common share
|
$
|
0.59
|
|
$
|
(0.02)
|
|
$
|
1.44
|
|
$
|
5.18
|
Average number of
shares outstanding used in basic earnings per share
computations
|
134.0
|
|
133.8
|
|
133.9
|
|
133.7
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.61
|
|
$
|
0.02
|
|
$
|
1.55
|
|
$
|
(0.04)
|
Discontinued
operations
|
(0.02)
|
|
(0.04)
|
|
(0.11)
|
|
5.22
|
Diluted
earnings per common share
|
$
|
0.59
|
|
$
|
(0.02)
|
|
$
|
1.44
|
|
$
|
5.18
|
Average number of
shares outstanding used in diluted earnings per share
computations
|
134.7
|
|
134.4
|
|
134.5
|
|
133.7
|
|
|
|
|
|
|
|
|
Other
Data:
|
|
|
|
|
|
|
|
Capital
additions
|
$
|
32.2
|
|
$
|
31.6
|
|
$
|
90.1
|
|
$
|
76.1
|
Depreciation and
amortization expense
|
$
|
34.3
|
|
$
|
38.0
|
|
$
|
101.5
|
|
$
|
92.2
|
FMC
CORPORATION
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF
NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS
(GAAP)
TO ADJUSTED
AFTER-TAX EARNINGS FROM CONTINUING OPERATIONS,
ATTRIBUTABLE TO
FMC STOCKHOLDERS (NON-GAAP)
(Unaudited, in
millions, except per share amounts)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income (loss)
attributable to FMC stockholders (GAAP)
|
$
|
79.7
|
|
$
|
(2.4)
|
|
$
|
193.2
|
|
$
|
693.1
|
Corporate special
charges (income):
|
|
|
|
|
|
|
|
Restructuring and
other charges (income) (a)
|
14.4
|
|
45.6
|
|
39.1
|
|
78.2
|
Non-operating pension
and postretirement charges (b)
|
0.2
|
|
5.5
|
|
2.3
|
|
19.9
|
Acquisition-related
charges (c)
|
4.4
|
|
43.0
|
|
16.8
|
|
274.0
|
Income tax expense
(benefit) on Corporate special charges (income)
(d)
|
(4.6)
|
|
(13.7)
|
|
(16.4)
|
|
(113.8)
|
Discontinued
operations attributable to FMC stockholders, net of income taxes
(e)
|
3.0
|
|
5.0
|
|
14.9
|
|
(698.8)
|
Tax adjustment
(f)
|
(7.4)
|
|
(26.6)
|
|
11.1
|
|
(23.7)
|
|
|
|
|
|
|
|
|
Adjusted after-tax
earnings from continuing operations attributable to
FMC stockholders (Non-GAAP) (1)
|
$
|
89.7
|
|
$
|
56.4
|
|
$
|
261.0
|
|
$
|
228.9
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share (GAAP)
|
$
|
0.59
|
|
$
|
(0.02)
|
|
$
|
1.44
|
|
$
|
5.18
|
Corporate special
charges (income) per diluted share, before tax:
|
|
|
|
|
|
|
|
Restructuring and
other charges (income)
|
0.11
|
|
0.34
|
|
0.29
|
|
0.58
|
Non-operating pension
and postretirement charges
|
—
|
|
0.04
|
|
0.02
|
|
0.15
|
Acquisition-related
charges
|
0.03
|
|
0.32
|
|
0.12
|
|
2.04
|
Income tax expense
(benefit) on Corporate special charges (income), per diluted
share
|
(0.03)
|
|
(0.10)
|
|
(0.12)
|
|
(0.85)
|
Discontinued
operations per diluted share
|
0.02
|
|
0.04
|
|
0.11
|
|
(5.22)
|
Tax adjustments per
diluted share
|
(0.05)
|
|
(0.20)
|
|
0.08
|
|
(0.18)
|
|
|
|
|
|
|
|
|
Diluted adjusted
after-tax earnings from continuing operations per share,
attributable to FMC stockholders (Non-GAAP)
|
$
|
0.67
|
|
$
|
0.42
|
|
$
|
1.94
|
|
$
|
1.70
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding used in diluted adjusted after-tax earnings
from continuing operations per share computations
(2)
|
134.7
|
|
134.4
|
|
134.5
|
|
134.4
|
____________________
(1) The Company believes that the Non-GAAP financial measure
"Adjusted After-Tax Earnings from Continuing Operations,
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. Adjusted
earnings excludes the effects of Corporate special charges,
tax-related adjustments and the results of our discontinued
operations. The Company also believes that excluding the effects of
these items from operating results allows management and investors
to compare more easily the financial performance of its underlying
businesses from period to period.
(2) The average number of shares outstanding used in the nine
months ended September 30, 2015
diluted adjusted after-tax earnings from continuing operations per
share computation (Non-GAAP) includes 0.7 million diluted shares.
This number of shares differs from the average number of shares
outstanding used in diluted earnings per share computations (GAAP)
as we had a net loss from continuing operations attributable to FMC
stockholders.
(a) Three Months Ended September
30, 2016:
Restructuring and other charges (income) includes charges of
$5.8 million representing adjustments
to severance and asset write-offs primarily associated with the
integration of Cheminova with Agricultural Solutions. Additionally,
restructuring and other charges (income) includes charges of
continuing environmental sites treated as a Corporate charge of
$8.1 million. Remaining restructuring
and other charges (income) includes net miscellaneous charges
(income) of $0.5 million.
Three Months Ended September 30,
2015:
Restructuring and other charges (income) includes a
charge of $50.7 million, primarily
related to the exit of our generic crop protection business in
Brazil and severance, associated
with the integration of Cheminova into our existing FMC
Agricultural Solutions segment as well as a charge of $16.6 million associated with the reorganization
of our FMC Health and Nutrition segment, of which, $11.9 million was due to the sale of our pectin
manufacturing business. Remaining restructuring and other charges
(income) includes net miscellaneous charges of $2.0 million. Offsetting these charges was
other income associated with sale of our remaining ownership
interest in a Belgian-based pesticide distribution company for
$26.6 million, slightly offset by
charges from continuing environmental sites treated as a Corporate
charge of $2.9 million.
Nine Months Ended September 30,
2016:
Restructuring and other charges (income) includes
charges of $14.7 million
representing adjustments to severance and asset write-offs
primarily associated with the integration of Cheminova with
Agricultural Solutions. Amounts also include $4.2 million associated as a result of the
Argentina government's action to
devalue its currency. Additionally, restructuring and other
charges includes charges of continuing environmental sites treated
as a Corporate charge of $17.1
million. Remaining restructuring and other charges (income)
includes net miscellaneous charges (income) of $3.1 million.
Nine Months Ended September 30,
2015:
Restructuring and other charges (income) includes a
charge of $55.5 million, primarily
related to exit of generic crop protection business in Brazil and severance associated with the
integration of Cheminova of $12.2
million, and a charge of $20.5
million associated with the reorganization of our FMC Health
and Nutrition segment, of which, $11.9
million was due to the sale of our pectin manufacturing
business. Remaining restructuring and charges included net
miscellaneous charges of $5.5
million. Offsetting these charges was other income
associated with sale of our remaining ownership interest in a
Belgian-based pesticide distribution company for $26.6 million, slightly offset by charges from
continuing environmental sites treated as a Corporate charge of
$8.3 million and a charge of
$15.0 million associated with a
license agreement entered into for the purpose of obtaining certain
technology and intellectual property rights relating to new
compounds still under development both of which pertain our FMC
Agricultural Solutions segment.
(b) Our non-operating pension and postretirement costs are
defined as those costs related to interest, expected return on plan
assets, amortized actuarial gains and losses and the impacts of any
plan curtailments or settlements. These costs are primarily related
to changes in pension plan assets and liabilities which are tied to
financial market performance and we consider these costs to be
outside our operational performance. We exclude these non-operating
pension and postretirement costs from our segments as we believe
that removing them provides a better understanding of the
underlying profitability of our businesses, provides increased
transparency and clarity in the performance of our retirement plans
and enhances period-over-period comparability. We continue to
include the service cost and amortization of prior service cost in
our Adjusted Earnings results noted above. We believe these
elements reflect the current year operating costs to our businesses
for the employment benefits provided to active employees.
(c) Charges related to the expensing of the inventory fair
value step-up resulting from the application of purchase
accounting, legal and professional fees and gains or losses on
hedging purchase price associated with the planned or completed
acquisitions. Amounts represent the following:
|
Three Months
Ended
September 30
|
|
Nine Months
Ended
September 30
|
(in
Millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Acquisition-related
charges
|
|
|
|
|
|
|
|
|
|
|
|
Legal and
professional fees (1), (2)
|
$
|
4.4
|
|
$
|
14.2
|
|
$
|
16.8
|
|
$
|
53.8
|
Inventory fair value
amortization (3)
|
—
|
|
28.8
|
|
—
|
|
48.1
|
(Gain)/loss on
hedging purchase price (2)
|
—
|
|
—
|
|
—
|
|
172.1
|
Total
Acquisition-related charges (4)
|
$
|
4.4
|
|
$
|
43.0
|
|
$
|
16.8
|
|
$
|
274.0
|
____________________
(1)
|
Represents
transaction costs, costs for transitional employees, other acquired
employees related costs and integration-related legal and
professional third-party fees.
|
(2)
|
These charges are
recorded as a component of "Selling, general and
administrative expense" on the condensed consolidated statements of
income (loss).
|
(3)
|
These charges are
recorded as a component of "Cost of sales and services" on
the condensed consolidated statements of income (loss).
|
(4)
|
Acquisition-related
charges associated with the integration of Cheminova with
Agricultural Solutions are expected to be completed by the
end of 2016.
|
(d) The income tax expense (benefit) on Corporate special
charges (income) is determined using the applicable rates in the
taxing jurisdictions in which the Corporate special charge or
income occurred and includes both current and deferred income tax
expense (benefit) based on the nature of the non-GAAP performance
measure.
(e) Three and Nine Months Ended September 30, 2016
and 2015
Discontinued operations includes provisions, net of recoveries,
for environmental liabilities, legal reserves and expenses
related to previously discontinued operations. Discontinued
operations for the nine months ended September 30, 2015,
includes the divestiture gain of approximately $700 million associated with the sale of FMC
Alkali Chemicals division which was completed on April 1, 2015.
(f) We exclude the GAAP tax provision, including discrete items,
from the Non-GAAP measure of income, and instead include a Non-GAAP
tax provision based upon the projected annual Non-GAAP effective
tax rate. The GAAP tax provision includes certain discrete tax
items including, but are not limited to: income tax expenses or
benefits that are not related to ongoing business operations in the
current year; tax adjustments associated with fluctuations in
foreign currency remeasurement of certain foreign operations;
certain changes in estimates of tax matters related to prior fiscal
years; certain changes in the realizability of deferred tax assets
and related interim accounting impacts; and changes in tax law; and
the impact of excluding subsidiary losses that cannot be benefited
from the GAAP EAETR and earnings to which it is
applied. Management believes excluding these discrete tax
items assists investors and securities analysts in understanding
the tax provision and the effective tax rate related to ongoing
operations thereby providing investors with useful supplemental
information about FMC's operational performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
(in
Millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Non-GAAP tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Revisions to our tax
liabilities due to finalization of prior year tax
returns
|
$
|
0.7
|
|
$
|
(0.9)
|
|
$
|
2.3
|
|
$
|
0.1
|
Revisions to
valuation allowances of historical deferred tax assets
|
—
|
|
—
|
|
0.4
|
|
7.6
|
Foreign currency
remeasurement and other discrete items
|
(8.1)
|
|
(25.7)
|
|
8.4
|
|
(31.4)
|
Non-GAAP tax
adjustments
|
$
|
(7.4)
|
|
$
|
(26.6)
|
|
$
|
11.1
|
|
$
|
(23.7)
|
RECONCILIATION OF
INCOME (LOSS) FROM OPERATIONS (GAAP) TO ADJUSTED EARNINGS FROM
CONTINUING OPERATIONS, BEFORE INTEREST AND INCOME TAXES
(NON-GAAP)
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income (loss)
(GAAP)
|
$
|
79.6
|
|
$
|
0.4
|
|
$
|
195.3
|
|
$
|
701.2
|
Restructuring and
other charges (income)
|
14.4
|
|
45.6
|
|
39.1
|
|
78.2
|
Non-operating pension
and postretirement charges
|
0.2
|
|
5.5
|
|
2.3
|
|
19.9
|
Acquisition-related
charges
|
4.4
|
|
43.0
|
|
16.8
|
|
274.0
|
Discontinued
operations, net of income taxes
|
3.0
|
|
5.0
|
|
14.9
|
|
(698.8)
|
Interest expense,
net
|
20.3
|
|
20.2
|
|
61.1
|
|
58.9
|
Provision (benefit)
for income taxes
|
12.6
|
|
(25.1)
|
|
75.5
|
|
(56.4)
|
Adjusted earnings
from continuing operations, before interest,
income taxes and noncontrolling interests (Non-GAAP)
(1)
|
$
|
134.5
|
|
$
|
94.6
|
|
$
|
405.0
|
|
$
|
377.0
|
___________________
(1)
|
Referred to as
Adjusted Operating Profit.
|
RECONCILIATION OF
CASH PROVIDED (REQUIRED) BY OPERATING
ACTIVITIES (GAAP) TO ADJUSTED CASH FROM OPERATIONS
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30
|
|
|
2016
|
|
2015
|
Cash provided
(required) by operating activities (GAAP)
|
|
$
|
411.0
|
|
$
|
(246.8)
|
Transaction and
integration costs related to acquisition of Cheminova
|
16.8
|
|
53.8
|
Hedge settlement of
Cheminova
|
|
—
|
|
264.8
|
U.S. federal income
tax payments related to sale of Alkali
|
|
—
|
|
239.0
|
Adjusted cash from
operations (Non-GAAP) (1)
|
|
$
|
427.8
|
|
$
|
310.8
|
___________________
(1)
|
The Company believes
that the Non-GAAP financial measure "Adjusted cash from operations"
provides useful information about the Company's cash flows to
investors and securities analysts. Adjusted cash from operations
excludes the effects of acquisition-related cash flows. The
Company also believes that excluding the effects of these items
from cash provided (required) by operating activities allows
management and investors to compare more easily the cash flows from
period to period.
|
FMC CORPORATION
FMC AGRICULTURAL
SOLUTIONS PRO FORMA FINANCIAL RESULTS
(Unaudited, in
millions)
In the second quarter of 2015, we began to present pro forma
combined results for the FMC Agricultural Solutions segment for
2015 and 2014. We believe that reviewing our operating results
by combining actual and pro forma results for the FMC Agricultural
Solutions segment for 2015 is more useful in identifying trends in,
or reaching conclusions regarding, the overall operating
performance of this segment. Our pro forma segment information
includes adjustments as if the Cheminova transaction had occurred
on January 1, 2015. Our pro
forma data will also be adjusted for the effects of acquisition
accounting but will not include adjustments for cost related to
integration activities, cost savings or synergies that might be
achieved by the combined businesses. Pro forma amounts to be
presented will not necessarily be indicative of what our results
would have been had we operated Cheminova since January 1, 2015, nor our future results. We
believe that reviewing our operating results by combining actual
and pro forma results for the FMC Agricultural Solutions segment
for these interim periods is more useful in identifying trends
in, or reaching conclusions regarding, the overall operating
performance of the segment.
FMC Agricultural
Solutions Pro Forma Financial Results
|
|
Three Months
Ended
September 30
|
|
Nine Months
Ended
September 30
|
(in
Millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, FMC
Agricultural Solutions, as reported (1)
|
$
|
558.9
|
|
$
|
577.6
|
|
$
|
1,657.0
|
|
$
|
1,595.6
|
Revenue, Cheminova,
pro forma (2)
|
—
|
|
—
|
|
—
|
|
362.0
|
Pro Forma Combined,
Revenue (3)
|
$
|
558.9
|
|
$
|
577.6
|
|
$
|
1,657.0
|
|
$
|
1,957.6
|
Operating
Profit
|
|
|
|
|
|
|
|
Operating Profit, FMC
Agricultural Solutions, as reported (1)
|
$
|
90.1
|
|
$
|
59.4
|
|
$
|
272.8
|
|
$
|
262.6
|
Operating Profit,
Cheminova, pro forma (2)
|
—
|
|
—
|
|
—
|
|
19.9
|
Pro Forma Combined,
Operating Profit (3)
|
$
|
90.1
|
|
$
|
59.4
|
|
$
|
272.8
|
|
$
|
282.5
|
___________________
(1)
|
As reported amounts
are the results of operations of FMC Agricultural Solutions,
including the results of the Cheminova acquisition from April 21,
2015 onward.
|
(2)
|
Cheminova pro forma
amounts include the historical results of Cheminova, prior to April
21, 2015. These amounts also include adjustments as if the
Cheminova transaction had occurred on January 1, 2015, including
the effects of acquisition accounting. The pro forma amounts do not
include adjustments for expenses related to integration activities,
cost savings or synergies that may have been or may be achieved by
the combined segment.
|
(3)
|
The pro forma
combined amounts are not necessarily indicative of what the results
would have been had we acquired Cheminova on January 1, 2015 or
indicative of future results. For the three and nine
months ended September 30, 2016 and for the three months ended
September 30, 2015, pro forma results and actual results are
the same.
|
FMC
CORPORATION
INDUSTRY SEGMENT
DATA
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
|
|
|
|
|
|
|
FMC Agricultural
Solutions
|
$
|
558.9
|
|
$
|
577.6
|
|
$
|
1,657.0
|
|
$
|
1,595.6
|
FMC Health and
Nutrition
|
178.9
|
|
195.9
|
|
566.3
|
|
613.5
|
FMC
Lithium
|
69.9
|
|
57.2
|
|
193.5
|
|
168.1
|
Total
|
$
|
807.7
|
|
$
|
830.7
|
|
$
|
2,416.8
|
|
$
|
2,377.2
|
Income from
continuing operations before income taxes
|
|
|
|
|
|
|
|
FMC Agricultural
Solutions
|
90.1
|
|
59.4
|
|
272.8
|
|
262.6
|
FMC Health and
Nutrition
|
45.1
|
|
47.0
|
|
137.3
|
|
148.5
|
FMC
Lithium
|
17.5
|
|
1.8
|
|
48.9
|
|
11.9
|
Segment operating
profit (a)
|
152.7
|
|
108.2
|
|
459.0
|
|
423.0
|
Corporate and
other
|
(18.2)
|
|
(13.6)
|
|
(54.0)
|
|
(46.0)
|
Adjusted earnings
from continuing operations, before interest,
income taxes and noncontrolling interests (Non-GAAP)
|
$
|
134.5
|
|
$
|
94.6
|
|
$
|
405.0
|
|
$
|
377.0
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(20.3)
|
|
(20.2)
|
|
(61.1)
|
|
(58.9)
|
Corporate special
(charges) income:
|
|
|
|
|
|
|
|
Restructuring and
other (charges) income (b)
|
(14.4)
|
|
(45.6)
|
|
(39.1)
|
|
(78.2)
|
Non-operating pension
and postretirement charges (c)
|
(0.2)
|
|
(5.5)
|
|
(2.3)
|
|
(19.9)
|
Acquisition-related
charges (d)
|
(4.4)
|
|
(43.0)
|
|
(16.8)
|
|
(274.0)
|
(Provision) benefit
for income taxes
|
(12.6)
|
|
25.1
|
|
(75.5)
|
|
56.4
|
Discontinued
operations, net of income taxes (e)
|
(3.0)
|
|
(5.0)
|
|
(14.9)
|
|
698.8
|
Net income
attributable to noncontrolling interests
|
0.1
|
|
(2.8)
|
|
(2.1)
|
|
(8.1)
|
Net income (loss)
attributable to FMC stockholders
|
$
|
79.7
|
|
$
|
(2.4)
|
|
$
|
193.2
|
|
$
|
693.1
|
____________________
(a)
|
Referred to as
Segment Earnings.
|
(b)
|
Three months ended
September 30, 2016: Amounts related to FMC Agricultural
Solutions charges of $8.7 million, FMC Health and Nutrition charges
of $0.7 million, FMC Lithium charges of $0 million and Corporate
charges of $5.0 million.
|
|
Three months ended
September 30, 2015: Amounts related to FMC Agricultural
Solutions charges of $24.1 million, FMC Health and Nutrition
charges of $16.6 million, FMC Lithium charges of $0 million and
Corporate charges of $4.9 million.
|
|
Nine months ended
September 30, 2016: Amounts related to FMC Agricultural
Solutions charges of $21.2 million, FMC Health and Nutrition
charges of $4.0 million, FMC Lithium charges of $0.6 million and
Corporate charges of $13.3 million.
|
|
Nine months ended
September 30, 2015: Amounts related to FMC Agricultural
Solutions charges of $47.2 million, FMC Health and Nutrition
charges of $20.6 million, FMC Lithium charges of $0.5 million and
Corporate charges of $9.9 million.
|
(c)
|
See Note (b) to the
schedule "Reconciliation of Net Income (Loss) Attributable to FMC
Stockholders (GAAP) to Adjusted After-Tax Earnings from Continuing
Operations, Attributable to FMC Stockholders (Non-GAAP)" for
further details on the components that make up this line
item.
|
(d)
|
See Note (c) to the
schedule "Reconciliation of Net Income (Loss) Attributable to FMC
Stockholders (GAAP) to Adjusted After-Tax Earnings from Continuing
Operations, Attributable to FMC Stockholders (Non-GAAP)" for
further details on the components that make up this line
item.
|
(e)
|
See Note (e) to the
schedule "Reconciliation of Net Income (Loss) Attributable to FMC
Stockholders (GAAP) to Adjusted After-Tax Earnings from Continuing
Operations, Attributable to FMC Stockholders (Non-GAAP)" for
further details on the components that make up this line
item.
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
Cash and cash
equivalents
|
$
|
130.7
|
|
$
|
78.6
|
Trade receivables,
net of allowance of $11.6 in 2016 and $13.9 in 2015
|
1,603.4
|
|
1,851.4
|
Inventories
|
817.4
|
|
800.2
|
Prepaid and other
current assets
|
252.6
|
|
241.7
|
Total current
assets
|
2,804.1
|
|
2,971.9
|
|
|
|
|
Investments
|
1.1
|
|
2.5
|
Property, plant and
equipment, net
|
1,031.0
|
|
1,016.4
|
Goodwill
|
798.6
|
|
776.1
|
Other intangibles,
net
|
849.2
|
|
837.0
|
Other assets
including long-term receivables, net
|
457.2
|
|
435.1
|
Deferred income
taxes
|
268.6
|
|
286.9
|
Total
assets
|
$
|
6,209.8
|
|
$
|
6,325.9
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
63.2
|
|
$
|
112.6
|
Accounts payable,
trade and other
|
371.6
|
|
403.6
|
Advanced payments
from customers
|
5.0
|
|
249.9
|
Accrued and other
liabilities
|
331.9
|
|
337.6
|
Accrued customer
rebates
|
417.4
|
|
256.1
|
Guarantees of vendor
financing
|
88.0
|
|
67.2
|
Accrued pensions and
other postretirement benefits, current
|
6.4
|
|
6.4
|
Income
taxes
|
25.3
|
|
19.9
|
Total current
liabilities
|
1,308.8
|
|
1,453.3
|
|
|
|
|
Long-term
debt
|
1,913.3
|
|
2,036.3
|
Long-term
liabilities
|
867.0
|
|
928.0
|
Equity
|
2,120.7
|
|
1,908.3
|
Total liabilities
and equity
|
$
|
6,209.8
|
|
$
|
6,325.9
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30
|
|
2016
|
|
2015
|
Cash provided
(required) by operating activities of continuing operations
(1)
|
$
|
411.0
|
|
$
|
(246.8)
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(23.2)
|
|
(63.7)
|
|
|
|
|
Cash provided
(required) by investing activities of continuing
operations
|
(101.2)
|
|
(1,281.7)
|
|
|
|
|
Cash provided
(required) by investing activities of discontinued
operations
|
4.0
|
|
1,634.3
|
|
|
|
|
Cash provided
(required) by financing activities of continuing
operations:
|
|
|
|
Increase (decrease)
in short-term debt
|
(50.4)
|
|
(537.6)
|
Financing
Fees
|
(0.7)
|
|
—
|
Proceeds from
borrowings of long-term debt
|
2.1
|
|
1,650.1
|
Repayments of
long-term debt
|
(126.3)
|
|
(1,024.4)
|
Issuances of common
stock, net
|
2.4
|
|
5.8
|
Excess tax benefits
from share-based compensation
|
0.5
|
|
1.6
|
Dividends
paid
|
(66.4)
|
|
(64.3)
|
Other repurchases of
common stock
|
(1.6)
|
|
(3.2)
|
Cash provided
(required) by financing activities
|
(240.4)
|
|
28.0
|
Effect of exchange
rate changes on cash
|
1.9
|
|
(5.9)
|
Increase (decrease)
in cash and cash equivalents
|
52.1
|
|
64.2
|
|
|
|
|
Cash and cash
equivalents, beginning of year
|
78.6
|
|
109.5
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
130.7
|
|
$
|
173.7
|
______________
(1)
|
The nine months ended
September 30, 2015 includes $264.8 million in payments
associated with the Cheminova acquisition purchase price hedges and
approximately $239.0 million in U.S. federal income tax payments
principally driven by the sale of our Alkali Chemicals
business.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/fmc-corporation-announces-third-quarter-2016-results-300356252.html
SOURCE FMC Corporation