Fourth quarter results benefited from 7 percent sales growth
and continued cost favorability; Company reported a
strong year of cash generation
with over $1 billion
improvement in Cash from Operations
Fourth Quarter 2024 Highlights
- Revenue of $1.22 billion, an
increase of 7 percent versus Q4 2023 and up 12 percent
organically1
- Consolidated GAAP net loss of $16
million, down 101 percent versus Q4 2023
- Adjusted EBITDA of $339 million,
up 33 percent versus prior year, $3
million higher than guidance midpoint
- Consolidated GAAP loss of $0.13
per diluted share, down 101 percent versus Q4 2023
- Adjusted earnings of $1.79 per
diluted share, up 67 percent versus Q4 2023
Full-Year 2024 Highlights
- Revenue of $4.25 billion lower by
5 percent versus prior year and down 3 percent
organically1
- Consolidated GAAP net income of $342
million, down 74 percent versus 2023
- Adjusted EBITDA of $903 million,
down 8 percent versus 2023
- Consolidated GAAP earnings of $2.72 per diluted share, down 74 percent versus
2023
- Adjusted earnings of $3.48 per
diluted share, down 8 percent versus 2023
- Consolidated GAAP cash flow from operations of $737 million, an increase of $1.04 billion versus 2023
- Free cash flow of $614 million,
an increase of $1.14 billion versus
2023
Full-Year 2025 Outlook2
- Revenue of $4.15 billion to
$4.35 billion, essentially flat to
prior year at the midpoint; growth of 3 percent, excluding the
impact of the Global Specialty Solutions (GSS) business
divestiture
- Adjusted EBITDA of $870 million
to $950 million, an increase of 1
percent versus prior year at the midpoint and an increase of 4
percent, excluding the impact from the GSS divestiture
- COGS tailwinds of $175 million to
$200 million expected due to raw
material deflation, favorable fixed cost absorption and further
benefits from restructuring actions
- Adjusted earnings per diluted share of $3.26 to $3.70,
flat at the midpoint to the prior year
- Free cash flow is forecasted to be $200
million to $400 million,
reflecting a decline of 51 percent at the midpoint
PHILADELPHIA, Feb. 4, 2025
/PRNewswire/ -- FMC Corporation (NYSE: FMC) today reported fourth
quarter 2024 revenue of $1.22
billion, an increase of 7 percent versus fourth quarter 2023
as volume growth, mainly from the company's growth
portfolio3, more than offset FX headwinds and lower
price. Excluding the impact of foreign currencies, organic revenue
increased 12 percent year-over-year. On a GAAP basis, the
company reported a loss of $0.13 per
diluted share in the fourth quarter, down 101 percent versus
fourth quarter 2023, due to significant one-time tax benefits
recorded in the prior year largely driven by tax incentives granted
to the company's Swiss subsidiaries as well as higher valuation
allowances on those benefits that were recorded in the fourth
quarter of 2024. Adjusted earnings were $1.79 per diluted share, an increase of 67
percent versus fourth quarter 2023.
"We delivered solid sales and strong year-on-year adjusted
EBITDA growth in the quarter," said Pierre Brondeau, FMC chairman
and chief executive officer. "While we saw a good increase in
volume, the growth was below our expectations as we learned during
the quarter that customers in many countries sought to hold
significantly less inventory than they have historically. This
dynamic, along with more pronounced FX impacts, acted as a headwind
to further growth. Over seventy-five percent of our sales growth
came from our growth portfolio. This, together with continued cost
discipline, was a key factor in delivering a strong year-over-year
increase in adjusted EBITDA, which was above our guidance
midpoint."
FMC revenue in the fourth quarter was driven by a 15 percent
increase in volume with gains reported in multiple countries, most
notably in the United States. An
FX headwind of 5 percent was higher than anticipated mostly due to
the Brazilian Real. Pricing declined by 3 percent, slightly better
than expectations. Sales of products launched in the last five
years increased 24 percent driven by higher sales of the new active
ingredients fluindapyr and Isoflex™ active.
Sales in North America improved
23 percent versus the prior year driven by higher volume.
Latin America sales declined
10 percent but were up 2 percent excluding the currency
impact. Volume growth in the region was partially offset by a
low-single digit price decline. In Asia, fourth quarter revenue rose 10 percent
versus prior year period due to higher volumes. Sales improved 13
percent excluding currency impacts. Higher volumes in EMEA led to
sales growth of 18 percent, 21 percent excluding currency impacts.
The Plant Health business improved by 33 percent versus the
prior-year period.
|
FMC
Revenue
|
Q4 2024
|
Full Year 2024
|
|
Total Revenue Change (GAAP)
|
7 %
|
(5 %)
|
|
Less FX
Impact
|
(5 %)
|
(2 %)
|
|
Organic1 Revenue Change
(Non-GAAP)
|
12 %
|
(3 %)
|
Fourth quarter adjusted EBITDA of $339
million was 33 percent higher than prior-year period as
higher volumes and favorable costs more than offset lower pricing
and FX headwinds. Cost favorability included lower input costs as
well as additional benefits from the company's restructuring
actions.
For the full year, FMC reported revenue of $4.25 billion, a decrease of 5 percent compared
to 2023. Excluding the impact of FX, year-over-year sales declined
3 percent. Volume growth of 3 percent was more than offset by
a 6 percent price decline and a 2 percent FX headwind. Higher
volume was driven by the company's growth portfolio, and
particularly the new active ingredients
Isoflex™ and fluindapyr, which generated sales
approaching $130 million.
On a GAAP basis, the company reported full-year net income of
$342 million, down 74 percent versus
the previous year due to one-time tax benefits reported in the
prior year fourth quarter. Consolidated earnings of $2.72 per diluted share represents a
year-over-year decrease of 74 percent. Full-year adjusted earnings
were $3.48 per diluted share, a
decrease of 8 percent compared to 2023.
On a GAAP basis, cash flow from operations was $737 million, an increase of $1.04 billion versus 2023, primarily due to
rebuilding of payables and a reduction in inventory. Free cash flow
in 2024 was $614 million, an increase
of $1.14 billion versus 2023,
primarily due to increased cash from operations.
Full Year 2025 Outlook2
Full year 2025 revenue is forecasted to be in the range of
$4.15 billion to $4.35 billion, essentially flat at the midpoint
and an increase of 3 percent after adjusting for approximately
$110 million of lost sales from
divestiture of the GSS business. Volume is expected to improve as
increases in growth portfolio sales more than offset weaker demand
in the channel as customers in many countries prioritize holding
lower-than-historical levels of inventory. Price is expected to
decline in the low-to-mid-single digits with the vast majority
driven by price adjustments in certain "cost-plus" contracts with
certain diamide partners as a result of lower manufacturing costs.
FX is expected to be a low-to-mid-single digit headwind.
Full year adjusted EBITDA is expected to be between $870 million and $950
million, an increase of 1 percent to prior year at the
midpoint and up 4 percent after adjusting for approximately
$25 million of lost EBITDA from the
GSS sale. Favorable COGS of $175
million to $200 million and a
modest volume gain are expected to be mostly offset by lower price,
an approximately $65 million to
$75 million FX headwind, and an
increase in selling costs as the company invests in new routes to
market. The range for 2025 adjusted EPS is expected to be
$3.26 to $3.70 per diluted share, flat to the prior year
at the midpoint. Full-year free cash flow is expected to be
$200 million to $400 million, a decline of $314 million versus 2024 at the midpoint as the
free cash flow conversion normalizes following the outsized
recovery in 2024.
First Quarter 2025 Outlook2
First quarter revenue is expected to be in the range of
$750 million to $800 million, a 16 percent decline at the
midpoint compared to first quarter 2024. Volume is expected to be
lower as customers in many countries continue to reduce inventory
and purchases are made cautiously by retailers and growers in an
environment of lower commodity prices. Price is expected to be a
mid-to-high-single digit headwind, primarily due to the contract
adjustments to certain diamide partners. FX is forecasted to be a
mid-single digit headwind. Adjusted EBITDA is expected to be in the
range of $105 million to $125 million, a decline of 28 percent at the
midpoint versus the prior-year period as lower price and FX
headwinds are partially offset by lower costs mainly in COGS.
Adjusted EPS is expected to be in the range of $0.05 to $0.15,
representing a decline of 72 percent at the midpoint versus first
quarter 2024 caused by the reduction in adjusted EBITDA.
|
Full Year 2025
Outlook2
|
Q1 2025 Outlook2
|
|
Revenue
|
$4.15 billion to
$4.35 billion
|
$750 million to
$800 million
|
|
Growth at midpoint vs. 2024*
|
0 %
|
-16 %
|
|
Adjusted EBITDA
|
$870 million to
$950 million
|
$105 million to
$125 million
|
|
Growth at midpoint vs. 2024*
|
1 %
|
-28 %
|
|
Adjusted EPS^
|
$3.26 to $3.70
|
$0.05 to $0.15
|
|
Growth at midpoint vs. 2024*
|
0 %
|
-72 %
|
|
|
^Adjusted EPS
estimates assume 125.6 million diluted shares for full year and
125.6 million diluted shares for Q1. Outlook for Adjusted EPS and
WADSO does not include the impact of any share repurchases that may
take place in 2025.
|
|
*Percentages are
calculated using whole numbers. Minor differences may exist due to
rounding.
|
Supplemental Information
The company will post supplemental information on the web at
https://investors.fmc.com, including its webcast slides for today's
earnings call, definitions of non-GAAP terms and reconciliations of
non-GAAP figures to the nearest available GAAP term.
Always read and follow all label directions, restrictions and
precautions for use. Products listed here may not be registered for
sale or use in all states, countries or jurisdictions. FMC, the FMC
logo, Cyazypyr, Dodhylex and Isoflex are trademarks of FMC
Corporation or an affiliate.
About FMC
FMC Corporation is a global agricultural sciences company
dedicated to helping growers produce food,
feed, fiber and fuel for an expanding world population
while adapting to a changing environment. FMC's innovative
crop protection solutions – including biologicals, crop nutrition,
digital and precision agriculture – enable growers and crop
advisers to address their toughest challenges economically while
protecting the environment. FMC is committed to discovering new
herbicide, insecticide and fungicide active ingredients, product
formulations and pioneering technologies that are consistently
better for the planet. Visit fmc.com to learn more and
follow us on LinkedIn®.
Statement under the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995: FMC and its
representatives may from time to time make written or oral
statements that are "forward-looking" and provide other than
historical information, including statements contained in this
press release, in FMC's other filings with the SEC, and in
presentations, reports or letters to FMC stockholders.
In some cases, FMC has identified these forward-looking
statements by such words or phrases as "outlook", "will likely
result," "is confident that," "expect," "expects," "should,"
"could," "may," "will continue to," "believe," "believes,"
"anticipates," "predicts," "forecasts," "estimates," "projects,"
"potential," "intends" or similar expressions identifying
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including the negative of
those words or phrases. Such forward-looking statements are based
on our current views and assumptions regarding future events,
future business conditions and the outlook for the company based on
currently available information. The forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results to be materially different from any
results, levels of activity, performance or achievements expressed
or implied by any forward-looking statement. These statements are
qualified by reference to the risk factors included in Part I, Item
1A of our Annual Report on Form 10-K for the year ended
December 31, 2023 (the "2023 Form
10-K"), the section captioned "Forward-Looking Information" in Part
II of the 2023 Form 10-K and to similar risk factors and cautionary
statements in all other reports and forms filed with the Securities
and Exchange Commission ("SEC"). We wish to caution readers not to
place undue reliance on any such forward-looking statements, which
speak only as of the date made. Forward-looking statements
are qualified in their entirety by the above cautionary
statement.
We specifically decline to undertake any obligation, and
specifically disclaim any duty, to publicly update or revise any
forward-looking statements that have been made to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events, except as may be
required by law.
This press release contains certain "non-GAAP financial
terms" which are defined on our website www.fmc.com/investors. Such
terms include adjusted EBITDA, adjusted earnings, free cash flow
and organic revenue growth. In addition, we have also provided on
our website reconciliations of non-GAAP terms to the most directly
comparable GAAP term.
- Organic revenue growth (non-GAAP) excludes the impact of
foreign currency changes.
- Although we provide forecasts for adjusted earnings per share,
adjusted EBITDA, and free cash flow (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. As a result, no GAAP outlook is
provided.
- Growth portfolio is defined as the group of platforms or
products for which the base molecules are data or IP protected.
Cyazypyr®, new active ingredients including fluindapyr,
Isoflex™, Dodhylex™ and rimisoxafen, and
the Plant Health portfolio constitute the FMC growth
portfolio.
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
December 31,
|
|
December 31,
|
|
(In millions, except per share
amounts)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
$ 1,224.3
|
|
$ 1,146.1
|
|
$ 4,246.1
|
|
$ 4,486.8
|
|
Costs of sales and
services
|
699.6
|
|
710.4
|
|
2,597.2
|
|
2,655.8
|
|
Gross margin
|
$
524.7
|
|
$
435.7
|
|
$ 1,648.9
|
|
$ 1,831.0
|
|
Selling, general and
administrative expenses
|
$
156.7
|
|
$
171.5
|
|
$
644.6
|
|
$
734.3
|
|
Research and
development expenses
|
72.2
|
|
81.8
|
|
278.0
|
|
328.8
|
|
Restructuring and other
charges (income)
|
61.2
|
|
164.3
|
|
219.8
|
|
212.3
|
|
Total costs and
expenses
|
$
989.7
|
|
$ 1,128.0
|
|
$ 3,739.6
|
|
$ 3,931.2
|
|
Income (loss) from continuing operations before
non-operating
pension and postretirement charges (income), interest expense,
net and income taxes
|
$
234.6
|
|
$
18.1
|
|
$
506.5
|
|
$
555.6
|
|
Non-operating pension
and postretirement charges (income)
|
5.3
|
|
4.8
|
|
18.2
|
|
18.2
|
|
Interest expense,
net
|
51.8
|
|
56.7
|
|
235.8
|
|
237.2
|
|
Income (loss) from continuing operations before
income taxes
|
$
177.5
|
|
$
(43.4)
|
|
$
252.5
|
|
$
300.2
|
|
Provision (benefit) for
income taxes
|
148.0
|
|
(1,197.0)
|
|
(150.9)
|
|
(1,119.3)
|
|
Income (loss) from
continuing operations
|
$
29.5
|
|
$ 1,153.6
|
|
$
403.4
|
|
$ 1,419.5
|
|
Discontinued
operations, net of income taxes
|
(45.6)
|
|
(57.2)
|
|
(61.8)
|
|
(98.5)
|
|
Net income (loss)
|
$
(16.1)
|
|
$ 1,096.4
|
|
$
341.6
|
|
$ 1,321.0
|
|
Less: Net
income (loss) attributable to noncontrolling interests
|
0.2
|
|
(2.1)
|
|
0.5
|
|
(0.5)
|
|
Net income (loss) attributable to FMC
stockholders
|
$
(16.3)
|
|
$ 1,098.5
|
|
$
341.1
|
|
$ 1,321.5
|
|
Amounts attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations, net of tax
|
$
29.3
|
|
$ 1,155.7
|
|
$
402.9
|
|
$ 1,420.0
|
|
Discontinued
operations, net of tax
|
(45.6)
|
|
(57.2)
|
|
(61.8)
|
|
(98.5)
|
|
Net income (loss)
|
$
(16.3)
|
|
$ 1,098.5
|
|
$
341.1
|
|
$ 1,321.5
|
|
Basic earnings (loss) per common share attributable
to FMC stockholders:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.23
|
|
$
9.23
|
|
$
3.22
|
|
$
11.34
|
|
Discontinued
operations
|
(0.36)
|
|
(0.46)
|
|
(0.49)
|
|
(0.79)
|
|
Basic earnings per common
share
|
$
(0.13)
|
|
$
8.77
|
|
$
2.73
|
|
$
10.55
|
|
Average number of
shares outstanding used in basic earnings per share
computations
|
125.0
|
|
124.9
|
|
125.0
|
|
125.1
|
|
Diluted earnings (loss) per common share attributable
to FMC stockholders:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.23
|
|
$
9.23
|
|
$
3.21
|
|
$
11.31
|
|
Discontinued
operations
|
(0.36)
|
|
(0.46)
|
|
(0.49)
|
|
(0.78)
|
|
Diluted earnings per common
share
|
$
(0.13)
|
|
$
8.77
|
|
$
2.72
|
|
$
10.53
|
|
Average number of
shares outstanding used in diluted earnings per share
computations
|
125.5
|
|
125.2
|
|
125.4
|
|
125.5
|
|
|
|
|
|
|
|
|
|
Other Data:
|
|
|
|
|
|
|
|
|
Capital additions and
other investing activities
|
$
20.1
|
|
$
27.1
|
|
$
71.6
|
|
$
143.7
|
|
Depreciation and
amortization expense
|
43.1
|
|
45.9
|
|
176.3
|
|
184.3
|
|
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)
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
December 31,
|
|
December 31,
|
|
(In millions, except per share
amounts)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income (loss)
attributable to FMC stockholders (GAAP)
|
$ (16.3)
|
|
$
1,098.5
|
|
$ 341.1
|
|
$
1,321.5
|
|
Corporate special
charges (income):
|
|
|
|
|
|
|
|
|
Restructuring and
other charges (income) (a)
|
61.2
|
|
190.1
|
|
219.8
|
|
238.1
|
|
Non-operating pension
and postretirement charges (income) (b)
|
5.3
|
|
4.8
|
|
18.2
|
|
18.2
|
|
Income tax expense
(benefit) on Corporate special charges (income)
(c)
|
(8.7)
|
|
(24.3)
|
|
(37.1)
|
|
(32.8)
|
|
Adjustment for
noncontrolling interest, net of tax on Corporate special charges
(income)
|
—
|
|
—
|
|
—
|
|
(1.6)
|
|
Discontinued operations
attributable to FMC stockholders, net of income taxes
(d)
|
45.6
|
|
57.2
|
|
61.8
|
|
98.5
|
|
Tax adjustment
(e)
|
137.5
|
|
(1,192.9)
|
|
(167.5)
|
|
(1,167.4)
|
|
Adjusted after-tax earnings from continuing
operations attributable to
FMC stockholders (Non-GAAP) (1)
|
$ 224.6
|
|
$ 133.4
|
|
$ 436.3
|
|
$ 474.5
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share (GAAP)
|
$ (0.13)
|
|
$ 8.77
|
|
$ 2.72
|
|
$ 10.53
|
|
Corporate special
charges (income) per diluted share, before tax:
|
|
|
|
|
|
|
|
|
Restructuring and
other charges (income)
|
0.49
|
|
1.52
|
|
1.75
|
|
1.90
|
|
Non-operating pension
and postretirement charges (income)
|
0.04
|
|
0.04
|
|
0.15
|
|
0.15
|
|
Income tax expense
(benefit) on Corporate special charges (income), per diluted
share
|
(0.07)
|
|
(0.19)
|
|
(0.30)
|
|
(0.26)
|
|
Adjustment for
noncontrolling interest, net of tax on Corporate special charges
(income) per diluted share
|
—
|
|
—
|
|
—
|
|
(0.02)
|
|
Discontinued operations
attributable to FMC stockholders, net of income taxes per diluted
share
|
0.36
|
|
0.46
|
|
0.49
|
|
0.78
|
|
Tax adjustments per
diluted share
|
1.10
|
|
(9.53)
|
|
(1.33)
|
|
(9.30)
|
|
Diluted adjusted after-tax earnings from continuing
operations per
share, attributable to FMC stockholders
(Non-GAAP)
|
$
1.79
|
|
$
1.07
|
|
$
3.48
|
|
$
3.78
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding used in diluted adjusted after-tax
earnings from continuing operations per share
computations
|
125.5
|
|
125.2
|
|
125.4
|
|
125.5
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Referred to as Adjusted
earnings. The Company believes that Adjusted earnings, a Non-GAAP
financial measure, and its presentation on a per share basis,
provides useful information about the Company's operating results
to management, 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.
|
|
|
|
(a)
|
Three Months Ended December 31,
2024:
|
|
|
|
Restructuring and other
charges (income) includes restructuring charges of $169.8 million
primarily related to the previously announced global restructuring
plan, referred to as "Project Focus." As part of the continued
evaluation of our supply chain footprint in connection with Project
Focus, we incurred contract abandonment charges of $132.1 million
during the fourth quarter of 2024. We anticipate significant
savings from abandoning this contract primarily in the form of the
ability to purchase from significantly lower cost suppliers.
Charges incurred related to Project Focus also consist of
$11.3 million of severance and employee separation costs, $6.9
million of professional service provider costs and other
miscellaneous charges, $13.2 million of asset impairment charges,
and accelerated depreciation of $6.1 million on assets identified
for disposal in connection with the restructuring initiative. Other
charges (income) of $(108.6) million includes a $180.3 million
gain, net of fourth quarter incurred transaction costs, from the
sale of Global Specialty Solutions ("GSS") business, which was
completed on November 1, 2024. The divestiture of GSS, which
includes a line of products that serve a diverse mix of non-crop
markets such as golf courses, professional sports stadiums and pest
control, is a key step in FMC's strategic plan to focus solely on
innovating products and services for the global crop protection
market. The gain from the GSS sale was partially offset by $60.9
million of charges associated with our environmental sites and
$10.8 million of other miscellaneous charges.
|
|
|
|
Three Months Ended December 31,
2023:
|
|
|
|
Restructuring and other
charges (income) includes $40.1 million of severance and employee
separation costs and $5.4 million of provider costs
associated with the Project Focus restructuring initiative.
Additionally, we incurred $89.2 million in currency related charges
primarily driven by the significant devaluation actions taken by
the Argentine Government during the fourth quarter of 2023. We
recognized $25.8 million of currency related charges from these
events within our "Cost of Sales and Services" line item on
our Consolidated Statements of Income (Loss). Finally, we incurred
$52.6 million in environmental charges associated with remediation
activities and other miscellaneous charges of $2.8
million.
|
|
|
|
Twelve Months Ended December 31,
2024:
|
|
|
|
Restructuring and other
charges (income) includes restructuring charges of $303.0 million
primarily related to Project Focus. We incurred $132.1 million of
contract abandonment charges as a result of the continued
evaluation of our supply chain footprint during the fourth quarter
of 2024 and $53.3 million of non-cash asset write off charges
resulting from the contract termination with one of our third-party
manufacturers during the second quarter of 2024. Charges incurred
in connection with Project Focus also consist of $55.8 million of
severance and employee separation costs, including costs associated
with the CEO transition, $31.0 million of professional service
provider costs and other miscellaneous charges, accelerated
depreciation of $20.5 million on assets identified for disposal in
connection with the restructuring initiative and $13.2 million of
asset impairment charges. These Project Focus restructuring charges
were partially offset by a $3.1 million gain recognized on the
disposition of a previously closed manufacturing site. Other
charges (income) of $(83.2) million is comprised of a gain, net of
full year incurred transaction costs, of $174.4 million from the
sale of our GSS business, which was completed during the fourth
quarter of 2024 as noted above. The gain from the GSS sale was
partially offset by $74.7 million of charges associated with our
environmental sites and $16.5 million of other miscellaneous
charges.
|
|
|
|
Twelve Months Ended December 31,
2023:
|
|
|
|
Restructuring and other
charges (income) includes $40.1 million of severance and employee
separation costs and $5.4 million of provider costs
associated with the Project Focus restructuring initiative. Other
restructuring costs of $8.7 million relate to employee separation
and asset impairment costs incurred as part of various ongoing
initiatives. These restructuring charges were offset by a $5.8
million gain recognized on the disposition of land related to a
previously closed manufacturing facility. We incurred $101.0
million in currency related charges primarily driven by the
significant devaluation actions taken by the Argentine Government
during the fourth quarter of 2023 as well as similar devaluation
actions in Pakistan and Argentina during previous quarters of 2023.
Other charges (income) also includes $13.0 million in charges
primarily resulting from the third quarter acquisition of
in-process research and development assets that do not meet the
criteria for capitalization. Additionally, we incurred $66.9
million in environmental charges associated with remediation
activities and other miscellaneous charges of $8.8
million.
|
|
|
|
(b)
|
Our non-operating
pension and postretirement charges (income) are defined as those
costs (benefits) related to interest, expected return on plan
assets, amortized actuarial gains and losses and the impacts of any
plan curtailments or settlements. These are excluded from our
Adjusted Earnings and 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 continue to include the service cost
and amortization of prior service cost in our Adjusted Earnings
results noted above. These elements reflect the current year
operating costs to our businesses for the employment benefits
provided to active employees.
|
|
|
|
(c)
|
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.
|
|
|
|
(d)
|
Discontinued operations
for all periods presented includes provisions, net of recoveries,
for environmental liabilities and legal reserves and expenses
related to previously discontinued operations and retained
liabilities. Discontinued operations for the twelve months ended
December 31, 2024 includes cash proceeds, net of fees of $18.0
million received as the result of an insurance settlement for
retained legal reserves.
|
|
|
|
(3)
|
We exclude the GAAP tax
provision, including discrete items, from the Non-GAAP measure of
income, and include a Non-GAAP tax provision based upon the annual
Non-GAAP effective tax rate. The GAAP tax provision includes
certain discrete tax items including, but not limited to: income
tax expenses or benefits that are not related to continuing
operating results in the current year; unusual or infrequently
occurring items; 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 changes in tax law. Management believes excluding these
discrete tax items assists investors and securities analysts in
understanding the tax provision and the effective tax rate related
to continuing operations thereby providing investors with useful
supplemental information about FMC's operational
performance.
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
December 31,
|
|
December 31,
|
|
(In millions)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Tax
adjustments:
|
|
|
|
|
|
|
|
|
Revisions to valuation
allowances of historical deferred tax assets
|
—
|
|
(223.5)
|
|
(1.6)
|
|
(223.5)
|
|
Net impact of
Switzerland tax incentives
|
122.3
|
|
(830.8)
|
|
(153.9)
|
|
(830.8)
|
|
Foreign currency
remeasurement and other discrete items
|
15.2
|
|
(138.6)
|
|
(12.0)
|
|
(113.1)
|
|
Total Non-GAAP tax adjustments
|
$
137.5
|
|
$
(1,192.9)
|
|
$
(167.5)
|
|
$
(1,167.4)
|
|
2024
Impacts
|
|
In connection with our
plans to establish a global technology and innovation center in
Switzerland, we initiated changes to our corporate entity
structure, including intra-entity transfers of certain intellectual
property, during the second quarter of 2024. As a result, we
recorded a net tax benefit of approximately $300 million in the
twelve months ended December 31, 2024. This benefit, net of
valuation allowance, was primarily a result of the recognition of a
step-up in tax basis to the fair value of the transferred
intellectual property by the Company's Swiss subsidiary. In
addition, local tax impacts associated with the disposition of the
transferred intellectual property were recorded as well as an
increase in our valuation allowance associated with Swiss
nonrefundable tax credits as a result of indirect effects of the
transferred intellectual property. During the fourth quarter of
2024, the Company recorded additional valuation allowances of
approximately $120 million related to updated projections of
future earnings associated with the Swiss tax incentive deferred
tax benefits noted below.
|
|
|
2023
Impacts
|
|
During the three months
ended December 31, 2023, the Company's Swiss subsidiaries were
granted ten-year tax incentives effective for 2023 and
retroactively for 2021 and 2022. The tax incentives were awarded
for the Company's commitment to invest in additional headcount and
transfer significant intellectual property as well as establishing
a new global technology and innovation center in Switzerland.
Deferred tax benefits of $1,149 million and related valuation
allowances of $318 million were recorded during the three
months ended December 31, 2023 to reflect the net estimated
future reductions in tax of $831 million associated with the
incentives.
|
|
Historically, FMC's
Brazil valuation allowance position was based on long-standing
local transfer pricing rules, as well as certain material favorable
permanent statutory tax deductions available to FMC Brazil as part
of local tax law. During the three months ended December 31,
2023, the Company released its FMC Brazil valuation allowance and
recorded a tax benefit of $223 million as a result of the
Brazilian Government enacting a new tax law that significantly
limits FMC Brazil's ability to benefit in the future from the
material favorable permanent statutory tax deductions previously
available as part of local tax law.
|
|
|
Subsequent Event -
2025
|
|
In January of 2025, the
Organization for Economic Co-operation and Development ("OECD")
issued administrative guidance on the Global Anti-Base Erosion
Model (GLOBE) rules that clarify how certain rules are to be
interpreted. This administrative guidance includes changes to
certain tax credits and other tax benefits that arose from
governmental arrangements granted after November 2021. It has been
concluded that this new administrative guidance is part of Swiss
tax law when issued and is retro-active. FMC's non-refundable tax
credits which were granted in 2023 to our Swiss subsidiaries are
impacted by this new guidance. The tax credits were
previously grandfathered in for full use under the GLOBE rules. FMC
is currently evaluating the impacts of this on its financial
statements.
|
|
RECONCILIATION OF
NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM CONTINUING
OPERATIONS, BEFORE INTEREST AND INCOME TAXES, DEPRECIATION AND
AMORTIZATION, AND
NONCONTROLLING INTERESTS (NON-GAAP)
(Unaudited)
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
December 31,
|
|
December 31,
|
|
(In millions)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income (loss)
(GAAP)
|
$
(16.1)
|
|
$ 1,096.4
|
|
$
341.6
|
|
$ 1,321.0
|
|
Restructuring and
other charges (income) (2)
|
61.2
|
|
190.1
|
|
219.8
|
|
238.1
|
|
Non-operating pension
and postretirement charges (income)
|
5.3
|
|
4.8
|
|
18.2
|
|
18.2
|
|
Discontinued
operations, net of income taxes
|
45.6
|
|
57.2
|
|
61.8
|
|
98.5
|
|
Interest expense,
net
|
51.8
|
|
56.7
|
|
235.8
|
|
237.2
|
|
Depreciation and
amortization
|
43.1
|
|
45.9
|
|
176.3
|
|
184.3
|
|
Provision (benefit)
for income taxes
|
148.0
|
|
(1,197.0)
|
|
(150.9)
|
|
(1,119.3)
|
|
Adjusted earnings from continuing operations, before
interest,
income taxes, depreciation and amortization, and noncontrolling
interests (Non-GAAP) (1)
|
$
338.9
|
|
$
254.1
|
|
$
902.6
|
|
$
978.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Referred to as Adjusted
EBITDA. Defined as operating profit excluding corporate special
charges (income) and depreciation and amortization
expense.
|
|
(2)
|
The three and twelve
months ended December 31, 2023 includes $25.8 million of charges
recorded to "Cost of Sales and services" on the consolidated
statements of income (loss) as well as $164.3 million and $212.3
million, respectively, shown as Restructuring and other charges
(income) on the consolidated statements of income
(loss).
|
|
RECONCILIATION OF
CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES (GAAP) TO
FREE CASH FLOW (NON-GAAP)
(Unaudited)
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
December 31,
|
|
December 31,
|
|
(In millions)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash provided
(required) by operating activities of continuing operations
(GAAP)(1)
|
$
427.9
|
|
$
317.9
|
|
$
736.7
|
|
$
(300.3)
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
(21.6)
|
|
$
(25.1)
|
|
$
(67.9)
|
|
$
(133.9)
|
|
Other investing
activities
|
1.5
|
|
(2.0)
|
|
(3.7)
|
|
(9.8)
|
|
Proceeds from land
disposition
|
—
|
|
—
|
|
—
|
|
5.8
|
|
Capital additions and
other investing activities
|
$
(20.1)
|
|
$
(27.1)
|
|
$
(71.6)
|
|
$
(137.9)
|
|
|
|
|
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
$
(28.4)
|
|
$
(25.1)
|
|
$
(65.6)
|
|
$
(86.1)
|
|
Divestiture transaction
costs (2)
|
9.4
|
|
—
|
|
14.0
|
|
—
|
|
Free cash flow (Non-GAAP)
(3)
|
$
388.8
|
|
$
265.7
|
|
$
613.5
|
|
$
(524.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes cash payments
made in connection with our Project Focus transformation program of
$16.3 million and $106.2 million for the three and twelve months
ended December 31, 2024, respectively. The three and twelve months
ended December 31, 2023 includes Project Focus cash payments of
$2.4 million.
|
|
(2)
|
Represents
transactional-related costs such as legal and professional
third-party fees associated with the sale of our Global Specialty
Solutions ("GSS") business. Proceeds from the sale of our GSS
business are excluded from free cash flow. Therefore, we have also
excluded the related transaction costs from free cash
flow.
|
|
(3)
|
Free cash flow is
defined as cash provided (required) by operating activities of
continuing operations (GAAP) adjusted for spending for capital
additions and other investing activities as well as cash provided
(required) by discontinued operations and divestiture transaction
costs associated with the sale of our GSS business. We believe that
this Non-GAAP financial measure provides a useful basis for
investors and securities analysts to evaluate the cash generated by
routine business operations including to assess our ability to
repay debt, fund acquisitions and return capital to shareholders
through share repurchases and dividends. Our use of free cash flow
has limitations as an analytical tool and should not be considered
in isolation or as a substitute for an analysis of our results
under U.S. GAAP.
|
|
RECONCILIATION OF
REVENUE CHANGE (GAAP) TO
ORGANIC REVENUE
CHANGE (NON-GAAP) (1)
(Unaudited)
|
|
|
Three Months Ended
December 31, 2024 vs. 2023
|
|
Twelve Months Ended
December 31, 2024 vs. 2023
|
|
Total Revenue Change (GAAP)
|
7 %
|
|
(5) %
|
|
Less: Foreign Currency
Impact
|
(5) %
|
|
(2) %
|
|
Organic Revenue Change
(Non-GAAP)
|
12 %
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We believe organic
revenue growth (non-GAAP) provides management and investors with
useful supplemental information regarding our ongoing revenue
performance and trends by presenting revenue growth excluding the
impact of fluctuations in foreign exchange rates.
|
|
RECONCILIATION OF
NET INCOME (LOSS) ATTRIBUTABLE TO
FMC STOCKHOLDERS
(GAAP) TO RETURN ON INVESTED CAPITAL ("ROIC")
NUMERATOR
(NON-GAAP) AND ROIC (USING NON-GAAP NUMERATOR)(1)
(Unaudited)
|
|
|
Twelve Months Ended
|
|
|
|
December 31, 2024
|
|
|
|
Net income (loss)
attributable to FMC stockholders (GAAP)
|
$
341.1
|
|
|
|
Interest expense, net,
net of income taxes
|
210.1
|
|
|
|
Corporate special
charges (income)
|
238.0
|
|
|
|
Income tax expense
(benefit) on Corporate special charges (income)
|
(37.1)
|
|
|
|
Discontinued
operations attributable to FMC stockholders, net of income
taxes
|
61.8
|
|
|
|
Tax
adjustments
|
(167.5)
|
|
|
|
ROIC numerator
(Non-GAAP)
|
$
646.4
|
|
|
|
|
|
|
|
December 31, 2024
|
|
December 31, 2023
|
|
Total debt
|
$
3,365.3
|
|
$
3,957.6
|
|
Total FMC
stockholders' equity
|
4,487.5
|
|
4,410.9
|
|
Total debt and FMC
stockholders' equity (GAAP)
|
$
7,852.8
|
|
$
8,368.5
|
|
ROIC denominator (2 yr
average total debt and FMC stockholders' equity)
|
$
8,110.7
|
|
|
|
ROIC (using Net income
(loss) attributable to FMC stockholders (GAAP) as
numerator)
|
4.21 %
|
|
|
|
ROIC (using Non-GAAP
numerator)
|
7.97 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We believe ROIC
provides management and investors with useful supplemental
information regarding our utilization of capital provided by both
equity and debt as well as our working capital and free cash flow
management.
|
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
(In millions)
|
December 31, 2024
|
|
December 31, 2023
|
|
Cash and cash
equivalents
|
$
357.3
|
|
$
302.4
|
|
Trade receivables, net
of allowance of $39.4 in 2024 and $29.1 in 2023
|
2,903.2
|
|
2,703.2
|
|
Inventories
|
1,201.6
|
|
1,724.6
|
|
Prepaid and other
current assets
|
496.2
|
|
398.9
|
|
Total current assets
|
$
4,958.3
|
|
$
5,129.1
|
|
Property, plant and
equipment, net
|
849.7
|
|
892.5
|
|
Goodwill
|
1,507.0
|
|
1,593.6
|
|
Other intangibles,
net
|
2,360.7
|
|
2,465.1
|
|
Deferred income
taxes
|
1,523.8
|
|
1,336.6
|
|
Other long-term
assets
|
453.8
|
|
509.3
|
|
Total assets
|
$
11,653.3
|
|
$
11,926.2
|
|
Short-term debt and
current portion of long-term debt
|
$
337.4
|
|
$
934.0
|
|
Accounts payable, trade
and other
|
768.5
|
|
602.4
|
|
Advanced payments from
customers
|
453.8
|
|
482.1
|
|
Accrued and other
liabilities
|
755.2
|
|
684.8
|
|
Accrued customer
rebates
|
489.9
|
|
480.9
|
|
Guarantees of vendor
financing
|
85.5
|
|
69.6
|
|
Accrued pensions and
other postretirement benefits, current
|
6.4
|
|
6.4
|
|
Income taxes
|
122.5
|
|
124.4
|
|
Total current liabilities
|
$
3,019.2
|
|
$
3,384.6
|
|
Long-term debt, less
current portion
|
$
3,027.9
|
|
$
3,023.6
|
|
Long-term
liabilities
|
1,097.4
|
|
1,084.6
|
|
Equity
|
4,508.8
|
|
4,433.4
|
|
Total liabilities and equity
|
$
11,653.3
|
|
$
11,926.2
|
|
FMC
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Year Ended December 31,
|
|
(In millions)
|
2024
|
|
2023
|
|
Cash provided
(required) by operating activities of continuing
operations
|
$
736.7
|
|
$
(300.3)
|
|
|
|
|
|
Cash provided
(required) by operating activities of discontinued
operations
|
(65.6)
|
|
(86.1)
|
|
|
|
|
|
Cash provided
(required) by investing activities of continuing
operations
|
263.6
|
|
(154.4)
|
|
|
|
|
|
Cash provided
(required) by financing activities of continuing
operations
|
(870.1)
|
|
331.5
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
(9.7)
|
|
(60.3)
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
$
54.9
|
|
$
(269.6)
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
302.4
|
|
572.0
|
|
|
|
|
|
Cash and cash equivalents, end of
period
|
$
357.3
|
|
$
302.4
|
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SOURCE FMC Corporation
