FMC first quarter adjusted EBITDA was $307 million, a decrease of 14 percent from the prior-year period
FMC Corporation has reported first quarter 2021 revenue of $1.2 billion, a decrease of 4 percent versus first quarter 2020 and 5 percent organically excluding a slight tailwind from foreign currencies.
On a GAAP basis, the company reported earnings of $1.40 per diluted share in the first quarter, a decrease of 11 percent versus first quarter 2020. First quarter adjusted earnings were $1.53 per diluted share, a decrease of 17 percent versus first quarter 2020.
"Our first quarter financial results were largely as anticipated; we delivered revenue at the high end and earnings slightly above the midpoint of our guidance ranges," said Mark Douglas, President and Chief Executive Officer, FMC.
FMC revenue decline was driven by a 4 percent volume decline, with a 1 percent FX tailwind offsetting a 1 percent price headwind. Asia revenue grew 18 percent (up 13 percent organically) driven by strong demand for the recently launched Overwatch herbicide in Australia and diamide demand across the region. Sales in EMEA declined 4 percent (down 8 percent organically) driven by Brexit-related orders in Q4 2020 and discontinued registrations, offset partially by increased insecticide sales.
In North America, a double-digit sales increase for herbicides and a strong product launch of Xyway fungicide were more than offset by a shift of diamide third-party partner sales from North America to Latin America which led to an 8 percent decline in the region. In Latin America, revenue declined 22 percent (down 13 percent organically), driven by proactive channel inventory management as well as reduced cotton planting and FX headwinds.
FMC first quarter adjusted EBITDA was $307 million, a decrease of 14 percent from the prior-year period. This decrease was driven primarily by cost increases on raw materials and higher R&D spending, as well as volume declines in Latin America and EMEA. These were offset partially by new product launches in Asia and North America.
The company continues to forecast full-year 2021 revenue to be in the range of $4.9 billion to $5.1 billion, driven by growth in all regions and representing an 8 percent increase at the midpoint versus 2020. The revenue growth will be driven primarily by volume, as well as price increases. Foreign currencies are not expected to impact full-year sales. Full-year adjusted EBITDA is still expected to be in the range of $1.32 billion to $1.42 billion, representing 10 percent year-over-year growth at the midpoint.
Douglas said, "We expect much of the growth in 2021 to be in the second half, driven by strong volume, new product launches and improved pricing."
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