FMC shares slump after slashing Q3 outlook, taking inventory charges
Oct 15 (Reuters) — FMC Corp on Thursday slashed its third-quarter forecasts after it cut prices of its distributor inventory amid falling agrochemical prices, dragging its shares 46% lower in premarket trading. The agricultural chemicals maker is grappling with weak distributor demand as falling market prices and increased generic competition make higher-priced products harder to sell, leaving customers reluctant to replenish inventories. Here are more details: FMC expects third-quarter revenue of $65 million to $125 million and adjusted earnings before interest, taxes, depreciation and amortization to be a loss of $510 million to $565 million Its third-quarter revenue outlook excludes India operations The company had earlier forecast its third-quarter revenue, excluding India, in the range of $840 million to $900 million, and adjusted EBITDA between $120 million and $140 million The revised outlook includes a $625 million-$675 million hit from commercial actions affecting revenue and adjusted EBITDA FMC said the commercial actions include reducing prices on selected products held by distributors in Brazil, Argentina, the United States and Canada It will also overhaul its US sellin
Oct 15 (Reuters) — FMC Corp on Thursday slashed its third-quarter forecasts after it cut prices of its distributor inventory amid falling agrochemical prices, dragging its shares 46% lower in premarket trading. The agricultural chemicals maker is grappling with weak distributor demand as falling market prices and increased generic competition make higher-priced products harder to sell, leaving customers reluctant to replenish inventories.
Here are more details: FMC expects third-quarter revenue of $65 million to $125 million and adjusted earnings before interest, taxes, depreciation and amortization to be a loss of $510 million to $565 million Its third-quarter revenue outlook excludes India operations The company had earlier forecast its third-quarter revenue, excluding India, in the range of $840 million to $900 million, and adjusted EBITDA between $120 million and $140 million The revised outlook includes a $625 million-$675 million hit from commercial actions affecting revenue and adjusted EBITDA FMC said the commercial actions include reducing prices on selected products held by distributors in Brazil, Argentina, the United States and Canada It will also overhaul its US selling model, reducing the gap between gross list prices and net prices after rebates The charges are intended to move higher-priced inventory held by channel customers and support future distributor replenishment demand FMC expects to remain in compliance with debt covenants at September 30, but plans talks with lenders on potential covenant changes over the next year (Reporting by Sumit Saha in Bengaluru; Editing by Leroy Leo) ((Sumit.Saha@thomsonreuters.com;)