FMC Corp. Sees Q2 Profit Below View, Lowers 2014 Earnings Outlook

(RTTNews) - Diversified chemicals maker FMC Corp. (FMC) on Monday forecast earnings for the second quarter below analysts' estimates and also lowered its earnings outlook for fiscal 2014, citing weaker than expected performance at its agricultural solutions business. The company's shares are down more than 3 percent in the regular trading session.

For the second quarter, Philadelphia, Pennsylvania-based FMC forecasts adjusted earnings of $0.95 to $1.05 per share. On average, eleven analysts polled by Thomson-Reuters expect the company to report earnings of $1.11 per share for the quarter. Analysts' estimates typically exclude one-time items.

According to FMC, prolonged cold weather in North America that had delayed first-quarter sales persisted into the second quarter, leading to reduced application of pre-emergent products.

The company noted that although sales of Authority brand soybean pre-emergent herbicides increased as expected, the increase was not enough to offset lower than expected sales of other products, particularly Capture LFR corn insecticide.

In addition, drought conditions in Sao Paulo state of Brazil that delayed sales into the sugarcane segment continued through the second quarter. This led to growers reducing their use of crop protection products and also a reduction in their replanting rates. FMC said it does not expect conditions in the sugarcane segment to improve during the remainder of 2014.

Consequently, FMC expects second-quarter segment earnings for agricultural Solutions to increase in mid-single digits percent from last year.

For fiscal 2014, FMC has now lowered its outlook for adjusted earnings to a range of $4.10 to $4.30 per share from the prior range of $4.35 to $4.55 per share. Analysts expect the company to earn $4.44 per share for the year.

FMC now projects full-year revenues and operating earnings for the agricultural solutions segment to increase by mid-single digits percentage over 2013. Earlier, the company projected mid-teens percent growth in full-year segment earnings.

Further, the company reaffirmed its previous guidance for the Health and Nutrition as well as the Minerals segments for both the second quarter and fiscal 2014.

FMC will report its financial results for the second quarter on Wednesday, July 30, 2014 after the stock market close.

In March, FMC said it plans to split into two independent publicly listed companies, New FMC and FMC Minerals. The company expects the split to be completed in the first half of 2015, with both the companies to be listed on the New York Stock Exchange.

FMC is currently trading at $72.10, down $2.65 or 3.55 percent on a volume of 1.06 million shares.