Reuters — Shares of FMC Corp. fell more than eight per cent on Monday after the agricultural products supplier cut its outlook for the year on volume declines in most of its major markets.
“Towards the end of May, we experienced unforeseen and unprecedented volume declines in three out of our four operating regions, as our channel partners rapidly reduced inventory levels,” CEO Mark Douglas said in a statement.
The regions hit were North America, Latin America, and Europe, the Middle East and Africa (EMEA).
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The stock, down over 23 per cent this year, was trading 8.4 per cent lower at $95.45 in morning trade (all figures US$).
The company reduced its full-year revenue forecast range to $5.2 billion to $5.4 billion, from $6.08 billion to $6.22 billion.
At midpoint, it also expects second-quarter revenue to be lower by about 30 per cent compared to its previous outlook.
In the prior quarter, FMC’s sales took a hit due to drought in southern Brazil and Argentina, lower demand in EMEA and channel inventory management in India.
Credit Suisse analysts lowered their full-year profit estimate for the company by 14 per cent to $6.57 per share to reflect ongoing inventory destocking.
Philadelphia-based FMC, which sells insecticides and herbicides, added on Monday that its adjusted core profit for the second quarter is expected to be between $185 million and $195 million, nearly 50 per cent down from its earlier expectation.
Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year is now expected to be between $1.3 billion and $1.4 billion, compared with an earlier forecast of $1.5 billion to $1.56 billion.
— Reporting for Reuters by Sourasis Bose in Bangalore.
