FMC (US:FMC)2024-02-26 16:00Financial Performance - FMC revenues declined approximately 23 percent year over year in 2023, with a 22 percent organic decline excluding foreign currency impacts[19] - For the year ended December 31, 2023, the company reported revenue of $4,486.8 million, a decrease of 22.7% compared to $5,802.3 million in 2022[292] - Gross margin for 2023 was $1,831.0 million, down from $2,326.8 million in 2022, reflecting a decline of 21.3%[292] - The company incurred total costs and expenses of $3,931.2 million in 2023, compared to $4,658.0 million in 2022, representing a decrease of 15.6%[292] - Net income attributable to FMC stockholders for 2023 was $1,321.5 million, an increase of 79.4% from $736.5 million in 2022[292] - Basic earnings per share attributable to FMC stockholders for continuing operations increased to $11.34 in 2023 from $6.60 in 2022[292] - The company reported a comprehensive income of $1,374.6 million for 2023, compared to $606.5 million in 2022[296] - Net income for 2023 was $1,321.0 million, a significant increase of 78.1% compared to $741.5 million in 2022[304] Revenue Breakdown - Revenue from insecticides was $2,639.4 million in 2023, down 21.1% from $3,346.6 million in 2022[378] - The total revenue from herbicides was $1,278.4 million in 2023, down 22.6% from $1,651.6 million in 2022[378] - FMC's revenue from Latin America was $1,401.1 million in 2023, a decline of 32.9% from $2,088.2 million in 2022[377] Product Development and Innovation - Sales from products launched in the last five years reached approximately $590 million, accounting for 14 percent of total revenue[19] - New product launches in 2023 generated approximately $146 million in sales, including Premio Star in Brazil and Altacor Evo in the United States[19] - The diamide active ingredients Rynaxypyr and Cyazypyr generated combined sales of approximately $1.8 billion, representing about 39 percent of total revenue in 2023[19] - The company is investing in plant health, including biological products, to enhance crop yield and quality[380] - FMC announced the acquisition of BioPhero ApS on June 29, 2022, to enhance its R&D pipeline with pheromone insect control technology[399] Research and Development - Research and development expenses for 2023 were $328.8 million, slightly up from $314.2 million in 2022, indicating a focus on innovation[292] - Research and development efforts are focused on environmentally sound solutions, with continuous investments in the FMC Stine Research Center to upgrade infrastructure and equipment[50] - The company has a robust patent estate with 755 active granted patents related to its diamide products, providing a competitive advantage[33] Sustainability and Environmental Impact - FMC has established sustainability goals for 2025 and 2035, including a commitment to 100% research and development spend on sustainable products and a net-zero greenhouse gas emissions target by 2035[62] - The company has reduced Highly Hazardous Pesticides (HHPs) to approximately 0.1% of total sales in 2023, reflecting its commitment to product stewardship and sustainability[64] - Environmental liabilities are accrued based on estimates for remediation costs, which are reviewed quarterly and adjusted as necessary[361] - Environmental charges for 2023 amounted to $66.9 million, an increase from $34.7 million in 2022[429] Financial Position and Liabilities - Long-lived assets totaled approximately $5.46 billion as of December 31, 2023, a slight decrease from $5.52 billion in 2022[22] - The net financial instrument position as of December 31, 2023, was a net liability of $11.4 million, compared to a net liability of $4.6 million at the end of 2022[280] - The company's debt portfolio consisted of 79% fixed-rate debt and 21% variable-rate debt as of December 31, 2023[287] - Long-term debt increased to $3,023.6 million in 2023, up from $2,733.2 million in 2022, indicating a rise of 10.6%[302] Capital Expenditures and Investments - The company reported capital expenditures of $(133.9) million in 2023, slightly lower than $(142.3) million in 2022[309] - The company paid dividends totaling $290.5 million in 2023, compared to $267.5 million in 2022, an increase of 8.9%[309] - The company’s investments increased to $19.8 million in 2023 from $14.5 million in 2022, a growth of 36.6%[302] Restructuring and Charges - Restructuring charges for the year ended December 31, 2023, amounted to $48.4 million, a significant increase from a restructuring income of $26.1 million in 2022[414] - The company reported a total of $212.3 million in restructuring and other charges for 2023, compared to $93.1 million in 2022, reflecting a substantial increase in restructuring activities[414] - The company expects to incur pre-tax restructuring charges between $180 million and $215 million as part of the "Project Focus" initiative aimed at optimizing costs and productivity[419] Accounting and Compliance - New accounting guidance effective for the company includes ASU 2023-09, requiring improved transparency in income tax disclosures starting from the year ended December 31, 2025[368] - The company is evaluating the impacts of the OECD's Pillar Two Model Rules, which will impose a global minimum tax rate of 15% starting in 2024[370] - The company has adopted new accounting guidance effective January 1, 2023, to improve transparency regarding supplier finance programs[374]