Q3 2024 FMC Corp Earnings Call Transcript
Key Points
- FMC Corp (FMC) reported strong third-quarter sales growth of 9%, with organic sales growth of 12%, driven by volume increases in Brazil and the US.
- North America outperformed expectations, with a 48% increase in sales due to strong volume growth and increased orders from diamide partners.
- New products, including fluindapyr and Isoflex, are showing strong growth potential, with expected combined sales of over $100 million in the second half of the year.
- The company is accelerating cost savings initiatives, targeting $125 million to $150 million in savings for 2024, with a gross run rate of over $225 million in 2025.
- FMC Corp (FMC) confirmed its full-year guidance, expecting fourth-quarter sales growth of 19% at the guidance midpoint, driven by new product introductions and cost benefits from restructuring.
- Latin America faced unexpected challenges, particularly in Brazil and Argentina, due to delayed rains, increased borrowing rates, and the bankruptcy of a large customer.
- Pricing pressures were significant, with about two-thirds of the total company price decline attributed to Brazil and Argentina.
- Asia experienced a 10% sales decline, primarily due to lower sales in India as the country continues to work through excess channel inventory.
- FMC Corp (FMC) anticipates continued FX headwinds, particularly from the Brazilian real, impacting revenue growth.
- The company expects a mid-single-digit price headwind in the fourth quarter due to ongoing challenging market conditions, especially in Asia and Latin America.
Good morning, and welcome to the third 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. Welcome to FMC Corporation's third quarter earnings call. Joining me today are Pierre Brondeau, Chairman and Chief Executive Officer; Andrew Sandifer, Executive Vice President, and Chief Financial Officer; and Ronaldo Pereira, President.
Following our prepared remarks, we will take questions. Our earnings release and today's slide presentation are available on our website, and the prepared remarks and 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 identified in
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