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By Dean Seal
Agricultural-sciences company FMC has cut its guidance for the second time in under four months as challenges in Latin America weigh on sales volumes there.
The Philadelphia-based company said Monday that destocking in Brazil and a drought in Argentina were the primary drivers of the revision.
FMC now expects revenue of $4.48 billion to $4.72 billion in 2023, down from its previous guidance for $5.2 billion to $5.4 billion. Adjusted earnings before interest, taxes, depreciation and amortization are now projected to be $970 million to $1.03 billion for the year, compared with a prior outlook of $1.3 billion to $1.4 billion.
For the third quarter, revenue is forecast to come in at $982 million, with adjusted earnings of 44 cents a share. FMC previously said it expected adjusted earnings of 90 cents to $1.32 a share on revenue of $1.19 billion to $1.27 billion.
FMC is now guiding for fourth-quarter revenue of $1.14 billion to $1.38 billion, instead of $1.66 billion to $1.78 billion as previously projected. Adjusted EBITDA during the quarter is expected to be $246 million to $306 million, down from a prior forecast for $511 million to $561 million.
The company, which makes herbicides, insecticides and fungicides, cut its outlook back in July in response to inventory pullbacks across North America, Latin America and Europe, the Middle East and Africa.
The channel destocking has continued in all regions, though the magnitude of the channel destocking in Brazil was significantly greater than anticipated, Chief Executive Mark Douglas said. FMC has launched a restructuring process for its operations in Brazil.
Write to Dean Seal at [email protected]
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