FMC Corporation announces second quarter earnings at higher end of guidance range; updates full-year outlook

Core Viewpoint - FMC Corporation reported a year-over-year earnings improvement driven by volume growth and restructuring savings, despite facing pricing pressures and foreign currency impacts [1]. Financial Performance - Q2 2024 revenue reached $1.04 billion, a 2% increase compared to Q2 2023, with a 4% organic growth [2][4]. - Consolidated GAAP net income was $295 million, translating to $2.35 per diluted share, reflecting an 879% increase year-over-year due to tax incentives [2][4]. - Adjusted EBITDA for Q2 2024 was $202 million, an 8% increase from the previous year [2][4]. - Free cash flow improved to $280 million, up $187 million from Q2 2023 [2][4]. Revenue Outlook - The full-year revenue outlook has been updated to a range of $4.30 billion to $4.50 billion, indicating a 2% decline at the midpoint compared to 2023 [3][5]. - Adjusted EBITDA guidance for the full year is now projected between $880 million and $940 million, a 7% decline at the midpoint versus 2023 [3][5]. - Adjusted earnings per diluted share are expected to range from $3.02 to $3.64, reflecting a 12% decrease at the midpoint compared to the previous year [3][5]. Market Dynamics - Demand improved in Q2 2024, particularly in the U.S. and Brazil, with a 14% increase in volume year-over-year [2][4]. - North America sales surged by 24%, driven by higher volumes in herbicides and strong growth from new product introductions [2][4]. - Latin America saw a 14% revenue increase, primarily in Brazil, while Asia experienced a 28% decline due to lower volumes [2][4]. Future Expectations - For the second half of 2024, sales are expected to range from $2.34 billion to $2.54 billion, a 15% increase at the midpoint compared to the previous year [6][7]. - Adjusted EBITDA for the second half is forecasted to be between $518 million and $578 million, representing a 28% growth at the midpoint versus the second half of 2023 [6][7]. - The company anticipates continued demand recovery, albeit slower than initially expected, with restructuring actions supporting earnings growth [8].