FMC reports higher sales, lower profit for Q4 and 2013

05 February 2014 22:46 Source:ICIS News

HOUSTON (ICIS)--FMC Corp. on Wednesday announced lower profits on higher sales revenue for the 2013 fourth quarter and full year after the close of US stock markets.

FMC said it had fourth quarter profits of $27.1m on revenues of $1.13bn, compared with net earnings of $102.2m in fourth quarter 2012 on revenues of $915.5m.

The company cited after-tax charges of $114.3m against earnings related to the closing of its peroxygens business and higher one-time operational costs and lower prices in its minerals division for the lower earnings.

For the year, FMC said it earned $293.9m on sales of $3.87bn for 2013, down from profit of $416.2m on revenues of $3.41bn in 2012.

The company cited charges of $159.3m on discontinued operations for the full-year decline.

For its agricultural division, FMC said fourth quarter results came to a profit of $136.8m on revenues of $677.7m while annual results were profits of $539m on revenues of $2.1bn.

In the health and nutrition segment, profit came to $40.4m on sales of $189.8m for the fourth quarter and profit of $169.5m on sales of $762m for the full year. The results were lower than guidance due to a slower startup to its Seals Sands omega-3 fatty acids plant in the UK. It is now running and regulatory approval is expected in April and commercial sales to commence in Q1, the company said.

In the minerals division, the company reported fourth quarter profits of $36.2m on revenues of $263.2m. For all of 2013, the minerals division earned $128.3m on revenues of $970m. A repositioning of mining equipment added costs and delayed production at the company’s soda ash production facility in the Green River basin of southwestern Wyoming, the company said. Lower lithium sales volumes offset higher soda ash sales volumes, the company said.

The company’s 2014 outlook included expectations of 15% increase in earnings compared to 2013 with improvements in all sectors, as new products, operational efficiencies and stronger export prices for soda ashes take hold, FMC Chairman and CEO Pierre Brondeau said.

“We believe that FMC’s portfolio is aligned for success in 2014 and well positioned for 2015,” Brondeau said.

By Bill Bowen