FMC Corporation has reported quarterly revenues of $942 million in the first quarter, a 3% increase over the same period in 2013. The company reported net income of $65.6 million, or $0.49 per diluted share, in the first quarter of 2014, compared to net income of $130.9 million, or $0.94 per diluted share, in the first quarter of 2013. First quarter results include charges of $61.3 million after tax, or $0.46 per diluted share, compared to charges of $18.1 million after tax, or $0.14 per diluted share, in the prior-year quarter. Excluding these items in both periods, adjusted earnings were $0.95 per diluted share, a decrease of 12% versus the prior-year quarter.
First-quarter segment revenues for FMC Health and Nutrition were $226.2 million, an increase of 18% versus the prior-year quarter. Segment earnings of$50.9 million were 17% higher than the prior-year quarter. Earnings growth was driven by demand for colloidal MCC and pharmaceutical binders and contributions from omega-3, partially offset by unfavourable foreign exchange impacts. In the quarter, the company received the required regulatory approvals for its new Seal Sands, U.K., plant and began commercial sales of new pharmaceutical grade omega-3 product lines.
The company maintains its expectation of a full-year 2014 segment earnings increase of mid-teens% versus 2013 driven by higher volumes in texture and stability solutions, omega-3s, natural colours and binder product lines.
In the first quarter, the company announced a plan to separate into two independent, publicly-listed companies. FMC began initial preparations in the first quarter and remains on track to complete the separation in the first half of 2015.
"Overall, our businesses performed as expected in the first quarter and, despite the weather impacting our Agricultural Solutions business in the quarter, we are reaffirming our outlook for the full year,” said Pierre Brondeau, FMC president, CEO and chairman. “We are confident that our new product innovations and strong customer relationships will deliver another record year in Agricultural Solutions. Health and Nutrition continues to experience demand growth in its core end markets that will be supplemented by growth in sales of omega-3 products. In FMC Minerals, both Alkali Chemicals and Lithium are performing well and delivering on their targets for both volumes and price.”
"We announced our plan to separate into two publicly-traded companies as part of a long-term strategy to create additional value. We recognise that this process is complex, but we have already made good progress. We created a dedicated Program Management Office to execute the separation-related activities, allowing our businesses to remain focused solely on their operations while the separation takes place."
