Q2 2024 FMC Corp Earnings Call Transcript
Key Points
- FMC Corp (FMC) delivered a solid Q2 with a 2% revenue increase and 14% volume growth.
- The company expects continued growth in Q3 and Q4, driven by demand recovery in the Americas.
- FMC Corp (FMC) has a strong diamides portfolio and a robust technology pipeline.
- The restructuring program is yielding significant cost benefits, with expected savings of $75 million to $100 million in 2024.
- The sale of the Global Specialty Solutions business for $350 million is expected to be completed by year-end, contributing to cash flow.
- Full-year revenue and EBITDA guidance have been reduced due to slower-than-expected demand recovery.
- Q3 EBITDA margin is expected to be impacted by a $40 million COGS headwind due to unabsorbed fixed costs.
- Asia sales were down 28%, largely driven by volume declines in India, with channel inventory issues expected to persist until 2025.
- Sales in EMEA were down 3%, with some regions still facing challenges despite overall growth in branded diamides and fungicides.
- The company faces competitive pressure and strategic pricing challenges, leading to a 10% price decline in Q2.
Good morning, and welcome to the second quarter 2024 earnings call for FMC Corporation. This event is being recorded (Operator Instructions)
I would now like to turn the conference over to Mr. Curt Brooks, Director of Investor Relations for FMC Corporation. Please go ahead.
Good morning, everyone, and welcome to FMC Corporation's second quarter earnings call. Joining me today are Pierre Brondeau, Chairman and the Chief Executive Officer; Andrew Sandifer, Executive Vice President and Chief Financial Officer; and Ronaldo Pereira, our President. Following our prepared remarks, we will take questions.
Our earnings release and today's slide presentation are available on our website and a prepared remarks from today's discussion will be made available after the call. Let me remind you that today's presentation and discussion will include forward-looking statements that are subject to various risks and uncertainties concerning specific factors including, but not limited to those factors
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