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FMC | Strategy and Financial Highlights Information from ICIS

 

Edited from “to our shareholders” company website

 

“The actions we have taken in the past three years have strengthened our company and the market has recognised the benefits of these actions. We remain as optimistic about the future today as we were three years ago. Our businesses are well positioned in the markets that they serve, our global team is focused on the right priorities, and we have the financial flexibility to execute on our strategic initiatives”, says chairman, president and chief executive officer, William Walter.

 

FMC will focus on pursuing innovation in all of its businesses through investing in both internal and external opportunities. Its innovation initiatives will build on the strengths and strategies of each of its businesses.

 

In its specialty chemicals business it is investing in a number of internal development opportunities. In the healthcare business BioPolymer it is funding the development of what it calls “promising” technology platforms targeted at drug dosage formulation as well as biomaterials for the medical industry.

 

In its Lithium business, it is investing in high growth energy storage markets and in alkali silica reactivity chemistries to extend the life of concrete. It is also expanding in China and India. Both BioPolymer and Lithium are investing in manufacturing plants, research facilities and organisations in order to better serve its customers, lower costs and participate in the rapidly growing regional opportunities in Asia.

 

In Industrial Chemicals, it will continue to make selective investments in capacity expansion and for cost reduction.

 

Going forward, the company expects continued, sustained growth in its operating profit and resulting cash provided by operating activities. Furthermore, it expects capital expenditures to remain below depreciation and amortisation as its businesses will meet future expected demand growth through a combination of debottlenecking current production, restarting mothballed plants and sourcing from third parties.

 

Strategy

 

The FMC corporate strategy is balanced between driving growth and innovation within its specialty chemicals and agricultural products segments and generating strong cash flow in its industrial chemicals segment. Its long-term objectives are as follows:

 

(1) To realise the operating leverage inherent in its businesses;

(2) Maximise earnings growth and return on capital by maintaining its market positions, reducing costs and prudently managing its asset base;

(3) In soda ash, it will continue to optimise its proprietary and low-cost solution mining and long wall mining techniques, thereby reducing its production costs;

(4) In hydrogen peroxide, it has shutdown higher cost production capacity to improve profitability. These initiatives have positioned the industrial chemicals business to benefit from the significant economic recovery as capacity utilisations improve and selling prices continue to move higher;

(5) In agricultural products, it will continue to reduce manufacturing costs by producing its products and/or intermediates in low-cost locations and benefiting from additional savings from its efforts to streamline its supply chain and reduce logistics costs;

(6) Focus the portfolio on higher growth businesses; and

(7) Maintain financial flexibility.

 

ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.

 

A PDF of the ICIS Top 100 Chemical Companies is available for download on ICIS connect.

 

See the article and analysis of the ICIS Top 100 on ICIS news.

 

Financial highlights: FMC, year ended 31 December

 

2008 

 2007

 2006

 2005

 2004

Sales ($ m)

3,115

2,633

2,346

2,146

2,055

Operating Profit ($ m)

501

228

251

235

230

Net Profit ($ m)

305

132

131

114

163

Total Assets ($ m)

2,976

2,733 

2,741

2,745

2,982

Diluted earnings per share ($)

4.35

 2.02

1.82

1.38

2.39

Number of Employees

 5,000

5,000

5,000

5,000

5,300

 

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FMC Company Structure

FMC is a producer of chemicals with manufacturing and mining operations in over 25 countries. FMC originated as the Bean Spray Pump Company in the 1880s and was reincorporated as the Food Manufacturing Company in 1928, becoming FMC Corporation in 1961.
More about FMC Structure

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