Philadelphia, Pennsylvania, USA
July 10, 2023
- Abrupt and unprecedented reductions in channel inventory by customers in North America, Latin America and EMEA started in late-May and materially impacted volumes in the quarter
- On-the-ground consumption by growers remains robust at roughly the same levels as last year
- Input costs outlook continues to improve with significant benefit expected in second half
- Significant cost mitigation actions initiated, reducing previously expected operating expense in the second half by $60 to $70 million
FMC Corporation today provided an update for its expectations on the second quarter and full-year 2023 outlook1. Revenue in the second quarter is now expected to be between $1.00 billion and $1.03 billion. Adjusted EBITDA is expected to be in the range of $185 million to $190 million. The revised guidance is driven by substantially lower-than-expected volumes due to an abrupt and significant reduction in inventory by channel partners, which only became evident towards the end of May and continued through the remainder of the quarter in North America, Latin America and EMEA.
Based on current channel dynamics, the Company is revising its full-year financial outlook with revenue now expected to be $5.20 billion to $5.40 billion. Adjusted EBITDA for the full year is now expected to be $1.30 billion to $1.40 billion.
"Towards the end of May, we experienced unforeseen and unprecedented volume declines in three out of our four operating regions, as our channel partners rapidly reduced inventory levels," said Mark Douglas, FMC president and chief executive officer. "Our full-year outlook for revenue and adjusted EBITDA has been revised to reflect these channel dynamics and their impact to volumes, as well as the benefit from improved input costs and the significant operating cost mitigation actions we have already implemented.
"Even as we manage through this market contraction and significant inventory reduction by our channel partners, on-the-ground consumption of our products remains strong and at similar levels to last year," Douglas said.
Information in this news release is preliminary and excludes the outlook on adjusted earnings per share and free cash flow, which will be updated at the second quarter 2023 earnings call. FMC will announce its second quarter 2023 earnings on Wednesday, August 2, 2023, after the stock market close with a webcast conference call on Thursday, August 3, 2023, at 9:00 a.m. ET.
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