PHILADELPHIA, Oct. 29, 2012 /PRNewswire/ -- FMC
Corporation (NYSE: FMC) today reported third quarter sales of
$902.4 million, a 5 percent increase
over the same period in 2011. The company reported net income of
$90.0 million, or $0.65 per diluted share, in the third quarter of
2012, versus net income of $86.8
million, or $0.61 per diluted
share, in the third quarter of 2011. This quarter's results
include charges of $19.4 million
after tax, or $0.14 per diluted
share, compared to charges of $12.4
million after tax, or $0.08
per diluted share, in the prior-year quarter. Excluding these
items in both periods, adjusted earnings were $0.79 per diluted share in the current quarter,
an increase of 14 percent versus the prior-year quarter.
(Logo:
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Pierre Brondeau, FMC president, CEO and chairman, said, "FMC
delivered another robust quarter, despite the uncertain global
economic environment. Agricultural Products showed once again
the power of our unique business model, with sales and earnings
growth led by Latin America but
also supported by strong performance in North America.
Specialty Chemicals' earnings were impacted by the lingering
effects of the operational issues we faced earlier in the year in
our Lithium business, which continued to reduce segment
results. Industrial Chemicals delivered a smaller than
expected increase in earnings, with somewhat lower than expected
soda ash export prices and poor performance by the zeolites product
line in Peroxygens."
Revenue in Agricultural Products of $423.6 million increased 11 percent versus the
prior-year quarter with substantial sales gains in Latin America and North America. In
Latin America, sales increased significantly, reflecting strong
market conditions, successful new product introductions and
increased planted area for soybeans in Brazil, and increased sales via our market
access joint venture in Argentina. In North America, sales
also increased significantly driven by strong pest pressures.
Sales in Asia were up slightly,
while sales in Europe/Middle East/Africa were down versus the prior-year period,
in part due to unfavorable exchange rate impacts. Segment
earnings of $99.8 million increased
23 percent versus the year-ago quarter driven by strong volume
growth, partially offset by unfavorable exchange rate impacts and
higher spending on targeted growth initiatives.
Revenue in Specialty Chemicals was $226.3
million, up 4 percent versus the year-ago quarter as higher
selling prices across all businesses were partially offset by
unfavorable exchange rate impacts of the weaker Euro on the
BioPolymer business and lower volumes in the Lithium
business. Segment earnings were down 8 percent to
$44.0 million, with higher prices
across the segment more than offset by higher operating costs in
Lithium, driven by extended planned downtime in Argentina, and higher raw material costs and
unfavorable exchange rate impacts in BioPolymer.
Revenue in Industrial Chemicals of $254.2
million decreased 4 percent from the year-ago quarter, with
higher selling prices in Alkali more than offset by lower volumes
in Alkali resulting from marginally lower domestic demand and
delayed export shipments, as well as by unfavorable exchange rate
impacts in Peroxygens. Segment earnings of $36.5 million increased 1 percent, with higher
selling prices partially offset by lower volumes and reflecting the
poor performance of the zeolites product line, which the company
has decided to exit by the end of this year.
Corporate expense was $15.3
million versus $12.8 million
in the prior-year quarter. Interest expense, net, was
$11.0 million as compared to
$9.1 million in the year-ago
quarter. On September 30, 2012,
gross consolidated debt was $869.4
million, and debt, net of cash, was $785.0 million. For the quarter,
depreciation and amortization was $33.7
million and capital expenditures were $46.8 million.
Outlook
Regarding the company's outlook for 2012, Brondeau said, "For
the full year 2012, we are maintaining our previous outlook and
continue to expect adjusted earnings of $3.42 to $3.52 per diluted share, a 16 percent
increase above last year at the midpoint of this range. Our
Agricultural Products segment expects to achieve its ninth
consecutive year of record earnings, delivering a mid-twenties
percent year-on-year increase in earnings, reflecting increased
volumes in all regions, due to strong market conditions and growth
from new and acquired products, but partially offset by higher
spending on targeted growth initiatives.
"Segment earnings in Specialty Chemicals are expected to be down
in the low- to mid-single digit percent for the year. In
BioPolymer, we are anticipating the eighth consecutive year of
record earnings, with higher selling prices and volume growth
expected to be partially offset by higher raw material costs,
increased spending on targeted growth initiatives, and unfavorable
exchange rate impacts. In Lithium, the operational issues we
experienced early in the year are largely behind us but will result
in substantially lower earnings versus the prior year. Our
Argentina Lithium operations are improving rapidly, and we expect
to be running at a normalized rate reflecting the capacity
expansion brought on-line earlier this year by the middle of this
quarter.
"And in our Industrial Chemicals segment, we expect a
year-on-year percentage earnings increase in the high single digits
with higher volumes and selling prices in soda ash and specialty
peroxygens partially offset by the poor performance of the zeolites
product line in Peroxygens."
Brondeau concluded, "For the fourth quarter of 2012, we expect
adjusted earnings of $0.75 to $0.85
per diluted share, up slightly versus the prior year at midpoint of
this range, with a mid-teens percent increase in adjusted earnings
before interest and taxes dampened by a very low tax rate in the
prior year period. In Agricultural Products, we expect
segment earnings to be up in the mid- to high-twenties percent
reflecting strong growth in Latin
America, especially Brazil,
partially offset by continued investment in targeted growth
initiatives. Specialty Chemicals' segment earnings are
projected to be up in the low single digits percent, driven by
improved operational performance in Lithium and with higher selling
prices and volumes in BioPolymer largely offset by higher raw
material and other operating costs, principally resulting from the
unplanned downtime in our Haugesund, Norway facility. And in Industrial
Chemicals, we expect fourth quarter segment earnings to be up in
the low single-digits percent with higher prices and volumes offset
in part by the poor performance of the zeolites product line."
***** ***** *****
***** ***** ***** ***** *****
***** *****
Share and per share financial data discussed in this press
release and the accompanying financial tables reflect the
two-for-one split of FMC's common stock completed May 24, 2012.
Due to the effects of Hurricane Sandy and its anticipated impact
on the Philadelphia area, FMC has
cancelled its third quarter 2012 earnings conference call,
previously scheduled for October 30,
2012, at 11:00 a.m. ET.
The company has provided its third quarter earnings webcast
conference call script, its 2012 Outlook Statement, and related
financial information on its website, www.FMC.com. Investors
are welcome to contact FMC Investor Relations at ir@fmc.com, or by
calling 215-299-6119 with any questions. Email and calls will
be returned as soon as possible. The company also will
discuss its 2012 performance and Vision 2015 growth progress at its
Conference for Institutional Investors in New York on December
11, 2012.
FMC Corporation is a diversified chemical company serving
agricultural, industrial, environmental, and consumer markets
globally for more than a century with innovative solutions,
applications and quality products. In 2011, FMC had annual sales of
approximately $3.4 billion. The
company employs approximately 5,500 people throughout the world,
and operates its businesses in three segments: Agricultural
Products, Specialty Chemicals and Industrial Chemicals. 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 2011
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.
FMC CORPORATION AND CONSOLIDATED
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited, in millions, except per share
amounts)
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
September 30
|
|
September 30
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenue
|
$
|
902.4
|
|
|
$
|
862.1
|
|
|
$
|
2,748.3
|
|
|
$
|
2,469.3
|
|
Costs
of sales and services
|
586.9
|
|
|
574.7
|
|
|
1,747.7
|
|
|
1,595.0
|
|
Gross margin
|
315.5
|
|
|
287.4
|
|
|
1,000.6
|
|
|
874.3
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
127.6
|
|
|
110.6
|
|
|
385.0
|
|
|
325.4
|
|
Research
and development expenses
|
29.5
|
|
|
27.8
|
|
|
86.4
|
|
|
75.5
|
|
Restructuring and other charges (income)
|
11.6
|
|
|
13.4
|
|
|
18.9
|
|
|
27.2
|
|
Total
costs and expenses
|
755.6
|
|
|
726.5
|
|
|
2,238.0
|
|
|
2,023.1
|
|
Income
from operations
|
146.8
|
|
|
135.6
|
|
|
510.3
|
|
|
446.2
|
|
Equity in
(earnings) loss of affiliates
|
0.5
|
|
|
(0.5)
|
|
|
0.7
|
|
|
(3.1)
|
|
Interest
expense, net
|
11.0
|
|
|
9.1
|
|
|
33.8
|
|
|
29.5
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations before income taxes
|
135.3
|
|
|
127.0
|
|
|
475.8
|
|
|
419.8
|
|
Provision
for income taxes
|
34.4
|
|
|
29.8
|
|
|
124.5
|
|
|
96.1
|
|
Income
from continuing operations
|
100.9
|
|
|
97.2
|
|
|
351.3
|
|
|
323.7
|
|
Discontinued operations, net of income
taxes
|
(6.3)
|
|
|
(6.3)
|
|
|
(21.8)
|
|
|
(23.2)
|
|
Net
income
|
$
|
94.6
|
|
|
$
|
90.9
|
|
|
$
|
329.5
|
|
|
$
|
300.5
|
|
Less: Net income attributable to noncontrolling
interests
|
4.6
|
|
|
4.1
|
|
|
15.5
|
|
|
12.5
|
|
Net income
attributable to FMC stockholders
|
$
|
90.0
|
|
|
$
|
86.8
|
|
|
$
|
314.0
|
|
|
$
|
288.0
|
|
|
|
|
|
|
|
|
|
Amounts
attributable to FMC stockholders:
|
|
|
|
|
|
|
|
Income from continuing operations, net of
tax
|
$
|
96.3
|
|
|
$
|
93.1
|
|
|
$
|
335.8
|
|
|
$
|
311.2
|
|
Discontinued operations, net of tax
|
(6.3)
|
|
|
(6.3)
|
|
|
(21.8)
|
|
|
(23.2)
|
|
Net income
|
$
|
90.0
|
|
|
$
|
86.8
|
|
|
$
|
314.0
|
|
|
$
|
288.0
|
|
Basic
earnings (loss) per common share attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.70
|
|
|
$
|
0.65
|
|
|
$
|
2.43
|
|
|
$
|
2.17
|
|
Discontinued operations
|
(0.05)
|
|
|
(0.04)
|
|
|
(0.16)
|
|
|
(0.16)
|
|
Basic earnings per common share
|
$
|
0.65
|
|
|
$
|
0.61
|
|
|
$
|
2.27
|
|
|
$
|
2.01
|
|
Average
number of shares used in basic earnings per share
computations
|
137.4
|
|
|
141.9
|
|
|
137.7
|
|
|
142.6
|
|
Diluted
earnings (loss) per common share attributable to FMC
stockholders:
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.70
|
|
|
$
|
0.65
|
|
|
$
|
2.42
|
|
|
$
|
2.16
|
|
Discontinued operations
|
(0.05)
|
|
|
(0.04)
|
|
|
(0.16)
|
|
|
(0.16)
|
|
Diluted earnings per common share
|
$
|
0.65
|
|
|
$
|
0.61
|
|
|
$
|
2.26
|
|
|
$
|
2.00
|
|
Average
number of shares used in diluted earnings per share
computations
|
138.4
|
|
|
143.1
|
|
|
138.9
|
|
|
143.9
|
|
|
|
|
|
|
|
|
|
Other
Data:
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
46.8
|
|
|
$
|
48.0
|
|
|
$
|
128.0
|
|
|
$
|
119.1
|
|
Depreciation and amortization expense
|
$
|
33.7
|
|
|
$
|
31.6
|
|
|
$
|
100.4
|
|
|
$
|
94.3
|
|
FMC CORPORATION AND CONSOLIDATED
SUBSIDIARIES
SCHEDULE OF ADJUSTED EARNINGS FROM
CONTINUING OPERATIONS (NON-GAAP)*
(Unaudited, in millions, except per share amounts)
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
September 30
|
|
September 30
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenue
|
$
|
902.4
|
|
|
$
|
862.1
|
|
|
$
|
2,748.3
|
|
|
$
|
2,469.3
|
|
Costs
of sales and services
|
586.3
|
|
|
574.7
|
|
|
1,740.5
|
|
|
1,595.0
|
|
Gross margin
|
316.1
|
|
|
287.4
|
|
|
1,007.8
|
|
|
874.3
|
|
Selling,
general and administrative expenses
|
119.5
|
|
|
107.2
|
|
|
358.7
|
|
|
313.0
|
|
Research
and development expenses
|
29.5
|
|
|
27.8
|
|
|
86.4
|
|
|
75.5
|
|
Equity in
(earnings) loss of affiliates
|
0.5
|
|
|
(0.5)
|
|
|
0.7
|
|
|
(3.1)
|
|
Net income
attributable to noncontrolling interests
|
4.6
|
|
|
4.1
|
|
|
15.5
|
|
|
12.5
|
|
Total
costs and expenses
|
740.4
|
|
|
713.3
|
|
|
2,201.8
|
|
|
1,992.9
|
|
|
|
|
|
|
|
|
|
Adjusted earnings from continuing operations,
before interest and income taxes
|
$
|
162.0
|
|
|
$
|
148.8
|
|
|
$
|
546.5
|
|
|
$
|
476.4
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
11.0
|
|
|
9.1
|
|
|
33.8
|
|
|
29.5
|
|
Adjusted earnings from continuing operations,
before income taxes
|
$
|
151.0
|
|
|
$
|
139.7
|
|
|
$
|
512.7
|
|
|
$
|
446.9
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
41.6
|
|
|
40.5
|
|
|
141.0
|
|
|
129.6
|
|
|
|
|
|
|
|
|
|
Adjusted after-tax earnings from continuing
operations, attributable to FMC stockholders
(Non-GAAP)*
|
$
|
109.4
|
|
|
$
|
99.2
|
|
|
$
|
371.7
|
|
|
$
|
317.3
|
|
|
|
|
|
|
|
|
|
Diluted
adjusted after-tax earnings from continuing operations per share,
attributable to FMC stockholders
|
$
|
0.79
|
|
|
$
|
0.69
|
|
|
$
|
2.68
|
|
|
$
|
2.21
|
|
Average
number of shares used in diluted adjusted after-tax earnings from
continuing operations per share computations
|
138.4
|
|
|
143.1
|
|
|
138.9
|
|
|
143.9
|
|
___________________
* 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 investor and securities analysts. Adjusted
earnings excludes the effects of restructuring and other charges
and income, non-operating retirement-related costs,
acquisition-related charges and tax related adjustments. 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. Additionally, the above schedule is
presented in a format which reflects the manner in which we manage
our business and is not in accordance with GAAP.
Please see the reconciliation of Non-GAAP financial measures to
GAAP financial results.
FMC CORPORATION AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
RECONCILIATION OF NET INCOME
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
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Net income
attributable to FMC stockholders (GAAP)
|
$
|
90.0
|
|
|
$
|
86.8
|
|
|
$
|
314.0
|
|
|
$
|
288.0
|
|
Discontinued operations, net of income taxes
(a)
|
6.3
|
|
|
6.3
|
|
|
21.8
|
|
|
23.2
|
|
Restructuring and other (income) charges, net
(b)
|
11.6
|
|
|
13.4
|
|
|
18.9
|
|
|
27.2
|
|
Non-operating pension and postretirement charges
(c)
|
8.1
|
|
|
3.4
|
|
|
26.3
|
|
|
12.4
|
|
Acquisition-related charges (d)
|
0.6
|
|
|
—
|
|
|
7.2
|
|
|
—
|
|
Tax effect
of restructuring and other (income) charges, non-operating pension
and postretirement charges and acquisition-related
charges
|
(7.1)
|
|
|
(5.5)
|
|
|
(18.8)
|
|
|
(13.2)
|
|
Tax
adjustments (e)
|
(0.1)
|
|
|
(5.2)
|
|
|
2.3
|
|
|
(20.3)
|
|
|
|
|
|
|
|
|
|
Adjusted after-tax earnings from continuing
operations attributable to FMC stockholders
(Non-GAAP)
|
$
|
109.4
|
|
|
$
|
99.2
|
|
|
$
|
371.7
|
|
|
$
|
317.3
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per common share (GAAP)
|
$
|
0.65
|
|
|
$
|
0.61
|
|
|
$
|
2.26
|
|
|
$
|
2.00
|
|
Discontinued operations per diluted share
|
0.05
|
|
|
0.04
|
|
|
0.16
|
|
|
0.16
|
|
Restructuring and other (income) charges per diluted
share, before tax
|
0.08
|
|
|
0.09
|
|
|
0.14
|
|
|
0.19
|
|
Non-operating pension and postretirement charges per
diluted share, before tax
|
0.06
|
|
|
0.02
|
|
|
0.19
|
|
|
0.09
|
|
Acquisition-related charges per diluted share, before
tax
|
—
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|
Tax effect
of restructuring and other (income) charges, non-operating pension
and postretirement charges and acquisition-related charges, per
diluted share
|
(0.05)
|
|
|
(0.04)
|
|
|
(0.14)
|
|
|
(0.09)
|
|
Tax
adjustments per diluted share
|
—
|
|
|
(0.03)
|
|
|
0.02
|
|
|
(0.14)
|
|
|
|
|
|
|
|
|
|
Diluted
adjusted after-tax earnings from continuing operations per share,
attributable to FMC stockholders (Non-GAAP)
|
$
|
0.79
|
|
|
$
|
0.69
|
|
|
$
|
2.68
|
|
|
$
|
2.21
|
|
|
|
|
|
|
|
|
|
Average
number of shares used in diluted adjusted after-tax earnings from
continuing operations per share computations
|
138.4
|
|
|
143.1
|
|
|
138.9
|
|
|
143.9
|
|
____________________
(a) Discontinued operations for the three and nine months
ended September 30, 2012 and 2011,
respectively, primarily includes provisions for environmental
liabilities and legal reserves and expenses related to previously
discontinued operations.
(b) 2012:
Restructuring and other charges (income) for the three months
ended September 30, 2012, primarily
include charges of $5.7 million
related to severance costs associated with the Zeolites shutdown
within our Industrial Chemicals segment, $4.4 million related to a collaboration and
license agreement entered into by our Agricultural Products segment
for the purpose of obtaining certain technology and intellectual
property rights relating to a new fungicide compound still under
development and charges associated with continuing environmental
sites as a Corporate charge of $1.0
million. Remaining restructuring and other charges (income)
for the three months ended September 30,
2012 include net miscellaneous charges of $0.5 million.
Restructuring and other charges (income) for the nine months
ended September 30, 2012, primarily
include charges of $5.7 million
related to severance costs associated with the Zeolites shutdown
within our Industrial Chemicals segment, charges of $4.4 million related to a collaboration and
license agreement entered into by our Agricultural Products segment
for the purpose of obtaining certain technology and intellectual
property rights relating to a new fungicide compound still under
development and charges associated with continuing environmental
sites as a Corporate charge of $3.5
million. Remaining restructuring and other charges (income)
for the three months ended September 30,
2012 include net miscellaneous charges of $5.3 million.
2011:
Restructuring and other charges (income) for the three months
ended September 30, 2011, primarily
include charges related to the phase out of our Sodium Percarbonate
facility, which was part of our Industrial Chemicals segment, of
$10.1 million. Remaining
restructuring and other charges (income) for the three months ended
September 30, 2011, include net
miscellaneous charges of $3.3
million.
Restructuring and other charges (income) for the nine months
ended September 30, 2011, primarily
include charges related to the phase out of our Sodium Percarbonate
facility and shutdown of our Huelva, Spain facility, which were both part of our
Industrial Chemicals segment of $17.7
million, and charges associated with continuing
environmental sites as a Corporate charge of $4.1 million. Remaining restructuring and other
charges (income) for the nine months ended September 30, 2011 include net miscellaneous
charges of $5.4 million.
(c) 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 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.
(d) Charges related to the expensing of the inventory fair
value step-up resulting from the application of purchase
accounting. The charges for three and nine months ended
September 30, 2012 relate to a number
of acquisitions completed in 2011 and in 2012. On the condensed
consolidated statements of income, the charges are included in
"Costs of sales and services". No such charges occurred for the
three and nine month periods ended September
30, 2011.
(e) The tax adjustments in the nine months ended
September 30, 2012 represent an
increase to our valuation allowance related to foreign operations
for tax losses not expected to be fully recoverable in future
years. Tax adjustments for the three months ended September 30, 2011 related to adjustments for
prior year tax matters. Tax adjustments for the nine months ended
September 30, 2011, are primarily a
result of a reduction in our liability for unrecognized tax
benefits due to settlements of audits.
RECONCILIATION OF NET INCOME
ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP)
TO ADJUSTED
EARNINGS FROM CONTINUING OPERATIONS, BEFORE INTEREST AND INCOME
TAXES, (NON-GAAP)
(Unaudited, in millions, except per
share amounts)
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
September 30
|
|
September 30
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Net income
attributable to FMC stockholders (GAAP)
|
$
|
90.0
|
|
|
$
|
86.8
|
|
|
$
|
314.0
|
|
|
$
|
288.0
|
|
Discontinued operations, net of income
taxes
|
6.3
|
|
|
6.3
|
|
|
21.8
|
|
|
23.2
|
|
Restructuring and other (income) charges,
net
|
11.6
|
|
|
13.4
|
|
|
18.9
|
|
|
27.2
|
|
Non-operating pension and postretirement
charges
|
8.1
|
|
|
3.4
|
|
|
26.3
|
|
|
12.4
|
|
Acquisition-related charges
|
0.6
|
|
|
—
|
|
|
7.2
|
|
|
—
|
|
Interest expense, net
|
11.0
|
|
|
9.1
|
|
|
33.8
|
|
|
29.5
|
|
Provision for income taxes
|
34.4
|
|
|
29.8
|
|
|
124.5
|
|
|
96.1
|
|
Adjusted earnings from continuing operations,
before interest and income taxes (Non-GAAP)
|
$
|
162.0
|
|
|
$
|
148.8
|
|
|
$
|
546.5
|
|
|
$
|
476.4
|
|
RECONCILIATION OF FREE CASH
FLOW
(Unaudited, in millions)
|
Nine
Months Ended
|
|
September 30
|
|
2012
|
|
2011
|
Cash
provided (required) by operating activities (GAAP)
|
$
|
364.4
|
|
|
$
|
327.8
|
|
Excess tax
benefits from share-based compensation (GAAP)
|
7.4
|
|
|
6.3
|
|
Cash
provided (required) by operating activities of discontinued
operations (GAAP)
|
(31.8)
|
|
|
(29.8)
|
|
Cash
provided (required) by investing activities, excluding
acquisitions, net of cash acquired (GAAP)
|
(156.0)
|
|
|
(135.4)
|
|
|
|
|
|
Free
Cash Flow (Non-GAAP)
|
$
|
184.0
|
|
|
$
|
168.9
|
|
FMC CORPORATION AND CONSOLIDATED
SUBSIDIARIES
INDUSTRY SEGMENT DATA
(Unaudited,
in millions)
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
September 30
|
|
September 30
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenue
|
|
|
|
|
|
|
|
Agricultural Products
|
$
|
423.6
|
|
|
$
|
382.1
|
|
|
$
|
1,271.4
|
|
|
$
|
1,055.3
|
|
Specialty Chemicals
|
226.3
|
|
|
217.9
|
|
|
677.6
|
|
|
656.5
|
|
Industrial Chemicals
|
254.2
|
|
|
264.0
|
|
|
803.8
|
|
|
761.3
|
|
Eliminations
|
(1.7)
|
|
|
(1.9)
|
|
|
(4.5)
|
|
|
(3.8)
|
|
Total
|
$
|
902.4
|
|
|
$
|
862.1
|
|
|
$
|
2,748.3
|
|
|
$
|
2,469.3
|
|
Income
from continuing operations before income taxes
|
|
|
|
|
|
|
|
Agricultural Products
|
99.8
|
|
|
80.9
|
|
|
340.8
|
|
|
275.7
|
|
Specialty Chemicals
|
44.0
|
|
|
47.6
|
|
|
141.0
|
|
|
148.5
|
|
Industrial Chemicals
|
36.5
|
|
|
36.0
|
|
|
127.4
|
|
|
112.5
|
|
Eliminations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Segment
operating profit
|
180.3
|
|
|
164.5
|
|
|
609.2
|
|
|
536.7
|
|
Corporate
|
(15.3)
|
|
|
(12.8)
|
|
|
(44.2)
|
|
|
(45.2)
|
|
Other
income (expense), net
|
(3.0)
|
|
|
(2.9)
|
|
|
(18.5)
|
|
|
(15.1)
|
|
Adjusted earnings from continuing operations,
before interest and income taxes
|
$
|
162.0
|
|
|
$
|
148.8
|
|
|
$
|
546.5
|
|
|
$
|
476.4
|
|
|
|
|
|
|
|
|
|
Restructuring and other income (charges)
(a)
|
(11.6)
|
|
|
(13.4)
|
|
|
(18.9)
|
|
|
(27.2)
|
|
Interest
expense, net
|
(11.0)
|
|
|
(9.1)
|
|
|
(33.8)
|
|
|
(29.5)
|
|
Non-operating pension and postretirement charges
(b)
|
(8.1)
|
|
|
(3.4)
|
|
|
(26.3)
|
|
|
(12.4)
|
|
Acquisition-related charges (c)
|
(0.6)
|
|
|
—
|
|
|
(7.2)
|
|
|
—
|
|
Provision
for income taxes
|
(34.4)
|
|
|
(29.8)
|
|
|
(124.5)
|
|
|
(96.1)
|
|
Discontinued operations, net of income
taxes
|
(6.3)
|
|
|
(6.3)
|
|
|
(21.8)
|
|
|
(23.2)
|
|
Net
income attributable to FMC stockholders
|
$
|
90.0
|
|
|
$
|
86.8
|
|
|
$
|
314.0
|
|
|
$
|
288.0
|
|
____________________
(a) Amounts for the three months ended September 30, 2012,
relate to Agricultural Products of $4.4
million, Specialty Chemicals of $0.1
million, Industrial Chemicals of $6.1
million and Corporate of $1.0
million. Amounts for the three months ended
September 30, 2011, relate to Agricultural Products of
$0.5 million, Specialty Chemicals of
$0.5 million, Industrial Chemicals of
$11.2 million and Corporate of
$1.2 million. Amounts for the nine
months ended September 30, 2012, relate to Agricultural
Products of $6.1 million, Industrial
Chemicals of $9.8 million and
Corporate of $3.0 million. Amounts
for the nine months ended September 30, 2011, relate to
Agricultural Products of $1.2
million, Specialty Chemicals of $2.1
million, Industrial Chemicals of $19.7 million and Corporate of $4.2 million.
(b) See Note (c) to the schedule "Reconciliation of Net Income
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.
(c) See Note (d) to the schedule "Reconciliation of Net Income
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 AND CONSOLIDATED
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited, in millions)
|
September 30, 2012
|
|
December 31, 2011
|
Cash and
cash equivalents
|
$
|
84.4
|
|
|
$
|
158.9
|
|
Trade
receivables, net
|
1,009.2
|
|
|
931.3
|
|
Inventories
|
620.5
|
|
|
470.3
|
|
Other
current assets
|
157.1
|
|
|
173.4
|
|
Deferred
income taxes
|
154.3
|
|
|
135.5
|
|
Total
current assets
|
2,025.5
|
|
|
1,869.4
|
|
|
|
|
|
Property,
plant and equipment, net
|
1,071.3
|
|
|
986.8
|
|
Goodwill
|
270.0
|
|
|
225.9
|
|
Deferred
income taxes
|
186.3
|
|
|
246.9
|
|
Other
long-term assets
|
512.8
|
|
|
414.5
|
|
Total
assets
|
$
|
4,065.9
|
|
|
$
|
3,743.5
|
|
|
|
|
|
Short-term
debt
|
$
|
58.6
|
|
|
$
|
27.0
|
|
Current
portion of long-term debt
|
2.9
|
|
|
19.5
|
|
Accounts
payable, trade and other
|
384.5
|
|
|
458.3
|
|
Accrued
customer rebates
|
278.5
|
|
|
115.1
|
|
Guarantees
of vendor financing
|
27.4
|
|
|
18.5
|
|
Accrued
pensions and other postretirement benefits, current
|
9.2
|
|
|
9.2
|
|
Other
current liabilities
|
326.2
|
|
|
272.3
|
|
Total
current liabilities
|
1,087.3
|
|
|
919.9
|
|
|
|
|
|
Long-term
debt
|
807.9
|
|
|
779.1
|
|
Long-term
liabilities
|
682.6
|
|
|
740.4
|
|
Equity
|
1,488.1
|
|
|
1,304.1
|
|
Total
liabilities and equity
|
$
|
4,065.9
|
|
|
$
|
3,743.5
|
|
FMC CORPORATION AND CONSOLIDATED
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited, in millions)
|
Nine
Months Ended September 30
|
|
2012
|
|
2011
|
Cash
provided (required) by operating activities
|
$
|
364.4
|
|
|
$
|
327.8
|
|
Cash
provided (required) by operating activities of discontinued
operations
|
(31.8)
|
|
|
(29.8)
|
|
Cash
provided (required) by investing activities:
|
|
|
|
Capital expenditures
|
(128.0)
|
|
|
(119.1)
|
|
Other investing activities
|
(142.3)
|
|
|
(17.8)
|
|
|
(270.3)
|
|
|
(136.9)
|
|
Cash
provided (required) by financing activities:
|
|
|
|
Net borrowings (repayments) under committed credit
facilities
|
24.0
|
|
|
10.9
|
|
Increase (decrease) in short-term debt
|
32.3
|
|
|
11.8
|
|
Financing fees
|
—
|
|
|
(3.9)
|
|
Repayments of long-term debt
|
(17.3)
|
|
|
(90.4)
|
|
Proceeds from borrowings of long-term debt
|
5.4
|
|
|
—
|
|
Distributions to noncontrolling interests
|
(15.4)
|
|
|
(12.9)
|
|
Contingent consideration paid
|
(2.0)
|
|
|
—
|
|
Dividends paid
|
(35.4)
|
|
|
(30.6)
|
|
Repurchases of common stock under publicly announced
program
|
(144.9)
|
|
|
(110.0)
|
|
Other repurchases of common stock
|
(3.8)
|
|
|
(4.2)
|
|
Excess tax benefits from share-based
compensation
|
7.4
|
|
|
6.3
|
|
Issuances of common stock, net
|
12.6
|
|
|
9.0
|
|
|
(137.1)
|
|
|
(214.0)
|
|
Effect of
exchange rate changes on cash
|
0.3
|
|
|
0.8
|
|
Increase
(decrease) in cash and cash equivalents
|
(74.5)
|
|
|
(52.1)
|
|
Cash and
cash equivalents, beginning of year
|
158.9
|
|
|
161.5
|
|
Cash and
cash equivalents, end of period
|
$
|
84.4
|
|
|
$
|
109.4
|
|
SOURCE FMC Corporation