On October 23, 2023, FMC Corp (FMC, Financial) released an update on its third quarter expectations and full year 2023 outlook. The company reported a downward revision in its Q3 revenue, adjusted EBITDA, and adjusted earnings per share due to lower sales volumes in Latin America, particularly in Brazil and Argentina.
Performance and Challenges
FMC Corp (FMC, Financial) reported that its Q3 performance was primarily affected by lower volumes in Latin America, with destocking in Brazil being more severe than anticipated. The company also noted that results in EMEA, Asia, and North America were broadly in line with expectations, despite continued destocking behavior in these regions.
Financial Achievements and Outlook
The company revised its full year 2023 outlook, projecting revenue to be between $4,480M to $4,720M, and adjusted EBITDA to range from $970M to $1,030M. For Q4 2023, FMC Corp (FMC, Financial) expects revenue to be between $1,139M to $1,379M, with adjusted EBITDA ranging from $246M to $306M.
“During the third quarter we observed continued channel destocking in all regions; however, the magnitude of the destocking in Brazil was much greater than we had anticipated,” said Mark Douglas, FMC president and chief executive officer. “With destocking conditions not expected to improve in the near-term, we have initiated an immediate restructuring process for our operations in Brazil and have launched a broader, more comprehensive process to review and adjust our total Company cost structure."
Restructuring and Cost Structure Review
In response to the current demand environment, FMC Corp (FMC, Financial) has initiated an immediate restructuring process in Brazil and launched a comprehensive review of the total company cost structure. The company plans to discuss these actions and its 2024 outlook at its Investor Day on November 16th.
FMC Corp (FMC, Financial) will announce its third quarter 2023 earnings on Monday, October 30, 2023, after the stock market close with a webcast conference call on Tuesday, October 31, 2023, at 9:00 a.m. ET.
