- FMC Corp Stocks fell on Monday to their lowest level since 2017, as the agricultural sciences company lowered its forecasts for the third quarter, current quarter and full year.
- The company blamed the drop sales in Latin America. as customers reduce inventories of FMC products in this country.
- FMC said it is undertaking a comprehensive process to review and adjust its cost structure.
FMC Corp. (FMC) was the worst-performing stock in the S&P 500 on Monday, as the agricultural sciences company cut its forecast due to falling demand in Latin America and announced a cost restructuring plan.
The herbicide and insecticide maker now expects third-quarter revenue of $982 million, with earnings before interest, taxes, depreciation and amortization (EBITDA) of $175 million. dollars and earnings per share (EPS) of 44 cents. Analysts forecast revenue of $1.21 billion and EPS of $1.02.
The company said the planned reductions were due to “significantly lower” sales volumes in Latin America, particularly linked to larger-than-expected destocking in Brazil and, to a lesser extent, drought in Argentina. The company said that while results were in line with estimates in the North America and EMEA (Europe, Middle East and Africa) regions, customers in these regions also continue to reduce their FMC stocks.
In addition to the third quarter changes, FMC has revised its EBITDA and revenue outlook for the current quarter and full year. These revisions are also lower than expected.
CEO Mark Douglas explained that with clearance conditions unlikely to improve in the near future, FMC began an immediate restructuring process of its operations in Brazil and “initiated a broader and more comprehensive process for reviewing and adjusting our total activities. Company cost structure.
FMC expected to release its financial report of the third quarter after the markets close on October 30.
FMC shares plunged by more than 13% on Monday to their lowest level in more than six and a half years after the release of the company's new forecasts.
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