FMC CORPORATION PHILADELPHIA, Feb. 10, 2016 /PRNewswire/ --
Fourth quarter 2015 Highlights
-- Consolidated revenues of $899 million
-- Consolidated adjusted earnings per diluted share of $0.77
-- Agricultural Solutions segment earnings of $101 million
-- Health and Nutrition segment earnings of $46 million
-- Lithium segment earnings of $11 million
Full year 2015 Highlights
-- Consolidated revenues of $3.28 billion
-- Consolidated adjusted earnings per diluted share of $2.47
-- Agricultural Solutions segment earnings of $364 million
-- Health and Nutrition segment earnings of $195 million
-- Lithium segment earnings of $23 million
FMC Corporation (NYSE: FMC) today reported fourth quarter and full year 2015 results. For the year, FMC reported revenue of $3.28 billion, up slightly compared to 2014. The company reported earnings of $489 million, or $3.66 per diluted share. Excluding various restructuring charges and certain gains and charges related to the exit of certain businesses, adjusted earnings from continuing operations were $2.47 per diluted share, a decline of 22 percent compared to the prior year.
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For the fourth quarter, FMC reported revenue of $899 million, a 1 percent increase over the same period in 2014. The company reported a net loss of $204 million, or a loss of $1.53 per diluted share, in the fourth quarter of 2015, as compared to net income of $77 million, or $0.57 per diluted share, in the fourth quarter of 2014. Excluding various restructuring charges and certain gains and charges related to the exit of certain businesses, adjusted earnings were $0.77 per diluted share, as compared to the prior-year quarter adjusted earnings of $0.85 per diluted share.
Pierre Brondeau, FMC president, CEO and chairman said: "Market conditions throughout 2015 were some of the most difficult the company has faced. In particular, the devaluation of foreign currencies relative to the U.S. dollar, combined with weak agricultural markets created significant challenges for FMC Agricultural Solutions. Foreign exchange movements alone reduced FMC Agricultural Solutions' pro forma operating earnings by 55 percent compared to 2014. Despite challenging conditions in the global crop protection market, we continued to see strong demand for FMC's proprietary products across all regions during the fourth quarter. However, high channel inventory levels in the Americas and foreign currency fluctuations continue to negatively impact this business. The integration of Cheminova continues to go well. In 2015, we realized $100 million in cost reductions, including $40 million from the Cheminova integration, and we are on track to deliver an additional $60 million to $70 million of savings in 2016."
Segment Results
Fourth quarter results were significantly impacted by foreign exchange movements, particularly the depreciation of the Brazilian real against the U.S. dollar, compared to the same period in 2014. Local currency price increases in Brazil recovered over 70 percent of the currency impact in the quarter. FMC Health and Nutrition posted a 5 percent increase in operating earnings, as manufacturing excellence initiatives and other cost reductions more than compensated for lower revenues. FMC Lithium's performance exceeded expectations and the business saw encouraging demand and pricing trends across the portfolio.
FMC Agricultural Solutions
Fourth quarter revenue for FMC Agricultural Solutions was $657 million, an increase of 5 percent versus reported revenue for the prior-year quarter. Segment earnings were $101 million, a decline of 22 percent versus prior-year reported results. On a pro forma basis, as described in the Press Release Schedules on page 7, fourth quarter segment revenue declined 23 percent compared to the same period in 2014, and segment earnings were 8 percent lower compared to the fourth quarter of 2014, as price increases and ongoing cost reduction programs only partially offset the negative impact of foreign currency movements and reduced third-party sales. Segment revenue for 2015 was $2.25 billion, 4 percent higher than 2014, while full-year segment earnings were $364 million, 27 percent lower than 2014. On a pro forma basis, segment revenue for 2015 was $2.6 billion, 23 percent lower compared to 2014, and segment earnings were $384 million, 28 percent lower compared to 2014.
For 2016, full-year segment revenue is expected to be approximately $2.3 billion to $2.5 billion and full-year segment earnings are expected to be in the range of $380 million to $420 million, with first quarter segment earnings in the range of $70 million to $90 million.
FMC Health and Nutrition
FMC Health and Nutrition fourth quarter revenue was $172 million, 10 percent lower versus the prior-year quarter, driven by lower carrageenan and alginate sales, along with the impact of the weaker euro. Segment earnings of $46 million were up 4.5 percent compared to the prior-year quarter, as favorable raw material pricing and lower operating costs more than offset unfavorable foreign currency impacts and lower sales volumes. Segment revenue for 2015 was $785 million, 5 percent lower than 2014, while full-year segment earnings were $195 million, 4 percent higher than 2014.
Segment revenue for the full year of 2016 is anticipated to be approximately $775 million to $825 million, while full-year segment earnings are expected to be between $198 million and $208 million. First quarter segment earnings are expected to be in the range of $46 million to $51 million. Earnings growth in 2016 is expected to be driven primarily by the benefits of operational improvements, along with continued growth in demand for excipients and nutritional products across emerging markets.
FMC Lithium
FMC Lithium reported fourth quarter segment revenue of $70 million, an increase of 1 percent from the prior-year quarter, and fourth quarter segment earnings of approximately $11 million, an increase of $3.3 million compared to the fourth quarter of 2014. Segment earnings benefited from cost savings projects and lower raw material costs, along with price increases in our carbonate and hydroxide products. These positives more than offset Argentina inflation and currency impacts. Segment revenue for 2015 was $238 million, 7 percent lower than 2014, while full-year segment earnings were $23 million, $4.2 million lower than 2014.
Demand for lithium remains strong and pricing trends continue to be favorable. Segment earnings are expected to be between $8 million and $12 million for the first quarter and between $33 and $43 million for the full year of 2016, an increase of 65 percent over 2015 at the mid-point of the range.
Corporate and Other
For the quarter, corporate and other expenses were $16 million, and net interest expense was $21 million. Depreciation and amortization was $23.5 million, and capital additions were $42.5 million. On December 31, 2015, gross consolidated debt was $2.15 billion, and debt, net of cash, was $2.1 billion. The Adjusted Tax Rate was 13 percent in the quarter and 22 percent for the full year.
2016 Outlook
Based on an Adjusted Tax Rate of 24 to 26 percent, adjusted earnings per share are expected to be in the range of $2.50 to $2.80 for the full year 2016, an increase of 7 percent (at the mid-point) versus 2015 adjusted earnings per share of $2.47.
Webcast and Supplemental Information
The company will post supplemental information on the web at www.FMC.com, including its 2016 Outlook Statement, definitions of non-GAAP terms and reconciliations of non-GAAP figures to the nearest available GAAP term.
About FMC
For more than a century, FMC Corporation has served the global agricultural, industrial and consumer markets with innovative solutions, applications and quality products. FMC acquired Cheminova in April 2015. Pro forma revenue totaled approximately $3.6 billion in 2015. FMC employs approximately 6,000 people throughout the world and operates its businesses in three segments: FMC Agricultural Solutions, FMC Health and Nutrition and FMC Lithium. For more information, visit www.FMC.com.
Safe Harbor Statement under the Private Securities Act of 1995: Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning specific factors described in FMC Corporation's 2014 Form 10-K and other SEC filings. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. FMC Corporation does not intend to update this information and disclaims any legal obligation to the contrary. Historical information is not necessarily indicative of future performance.
FMC CORPORATION
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
(Unaudited, in millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
----------- -----------
2015 2014 2015 2014
---- ---- ---- ----
Revenue $899.3 $887.8 $3,276.5 $3,258.7
Costs of sales and services 600.7 569.5 2,201.1 2,047.8
Gross margin 298.6 318.3 1,075.4 1,210.9
----- ----- ------- -------
Selling, general and administrative expenses 147.0 214.9 737.9 589.8
Research and development expenses 40.9 37.8 143.7 126.3
Restructuring and other charges (income) 165.8 11.5 244.0 56.4
Business separation costs - - - 23.6
Total costs and expenses 954.4 833.7 3,326.7 2,843.9
----- ----- ------- -------
Income (loss) from operations (55.1) 54.1 (50.2) 414.8
Equity in (earnings) loss of affiliates 0.2 - 0.2 (0.2)
Interest expense, net 21.2 13.6 80.1 51.2
Income (loss) from continuing operations before income taxes (76.5) 40.5 (130.5) 363.8
Provision (benefit) for income taxes 103.8 (18.4) 47.4 56.2
Income (loss) from continuing operations (180.3) 58.9 (177.9) 307.6
Discontinued operations, net of income taxes (22.4) 19.4 676.4 14.5
Net income (loss) $(202.7) $78.3 $498.5 $322.1
------- ----- ------ ------
Less: Net income attributable to noncontrolling interests 1.4 1.8 9.5 14.6
Net income (loss) attributable to FMC stockholders $(204.1) $76.5 $489.0 $307.5
======= ===== ====== ======
Amounts attributable to FMC stockholders:
Income (loss) from continuing operations, net of tax $(181.7) $57.1 $(187.4) $298.2
Discontinued operations, net of tax (22.4) 19.4 676.4 9.3
Net income (loss) $(204.1) $76.5 $489.0 $307.5
======= ===== ====== ======
Basic earnings (loss) per common share attributable to FMC stockholders:
Continuing operations $(1.36) $0.43 $(1.40) $2.23
Discontinued operations (0.17) 0.14 5.06 0.07
Basic earnings per common share $(1.53) $0.57 $3.66 $2.30
====== ===== ===== =====
Average number of shares outstanding used in basic earnings per share computations 133.7 133.5 133.7 133.3
===== ===== ===== =====
Diluted earnings (loss) per common share attributable to FMC stockholders:
Continuing operations $(1.36) $0.43 $(1.40) $2.22
Discontinued operations (0.17) 0.14 5.06 0.07
Diluted earnings per common share $(1.53) $0.57 $3.66 $2.29
====== ===== ===== =====
Average number of shares outstanding used in diluted earnings per share computations 133.7 134.3 133.7 134.3
===== ===== ===== =====
Other Data:
-----------
Capital additions $42.5 $53.7 $118.6 $174.8
Depreciation and amortization expense $23.5 $22.6 $115.7 $93.5
FMC CORPORATION
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SCHEDULE OF ADJUSTED EARNINGS FROM CONTINUING OPERATIONS (NON-GAAP)(2)
---------------------------------------------------------------------
(Unaudited, in millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
----------- -----------
2015 2014 2015 2014
---- ---- ---- ----
Revenue $899.3 $887.8 $3,276.5 $3,258.7
Costs of sales and services 591.0 569.5 2,143.3 2,043.6
Gross margin 308.3 318.3 1,133.2 1,215.1
----- ----- ------- -------
Selling, general and administrative expenses 125.0 117.5 470.1 447.5
Research and development expenses 40.9 37.8 143.7 126.3
Equity in (earnings) loss of affiliates 0.2 - 0.2 (0.2)
--- --- --- ----
Total costs and expenses 757.1 724.8 2,757.3 2,617.2
Adjusted earnings from continuing operations, before interest, income $142.2 $163.0 $519.2 $641.5
taxes and noncontrolling interests (Non-GAAP) (1)
Interest expense, net 21.2 13.6 80.1 51.2
Adjusted earnings from continuing operations, before income taxes and noncontrolling interests $121.0 $149.4 $439.1 $590.3
Provision for income taxes 15.8 33.3 97.0 154.1
Net income attributable to noncontrolling interests 1.4 1.8 9.5 9.4
--- --- --- ---
Adjusted after-tax earnings from continuing operations, attributable to FMC stockholders (Non-GAAP) (2) $103.8 $114.3 $332.6 $426.8
====== ====== ====== ======
Diluted adjusted after-tax earnings from continuing operations per share, attributable to FMC stockholders $0.77 $0.85 $2.47 $3.18
===== ===== ===== =====
Average number of shares outstanding used in diluted adjusted after-tax earnings from continuing operations per share computations (3) 134.3 134.3 134.4 134.3
===== ===== ===== =====
___________________
(1) Referred to as Adjusted Operating Profit.
(2) The Company believes that the Non-GAAP
financial measure "Adjusted After-Tax
Earnings from Continuing Operations,
attributable to FMC Stockholders", and
its presentation on a per share basis,
provides useful information about the
Company's operating results to
investors. Adjusted Earnings excludes
the effects of Corporate special
charges, Non-GAAP tax adjustments and
the results of our discontinued
operations. The Company also believes
that excluding the effects of these
items from operating results allows
management and investors to compare more
easily the financial performance of its
underlying businesses from period to
period. Additionally, the above schedule
is presented in a format which reflects
the manner in which we manage our
business and is not in accordance with
GAAP.
(3) The average number of shares outstanding
used in the twelve months ended December
31, 2015 diluted adjusted after-tax
earnings from continuing operations per
share computation (Non-GAAP) includes
0.7 million diluted shares. This number
of shares differs from the average
number of shares outstanding used in
diluted earnings per share computations
(GAAP) as we had a net loss from
continuing operations attributable to
FMC stockholders.
Please see the reconciliation of Non-GAAP financial measures to GAAP financial results.
FMC CORPORATION
---------------
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
---------------------------------------------
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP)
TO ADJUSTED AFTER-TAX EARNINGS FROM CONTINUING OPERATIONS,
ATTRIBUTABLE TO FMC STOCKHOLDERS (NON-GAAP)
(Unaudited, in millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
2015 2014 2015 2014
---- ---- ---- ----
Net income (loss) attributable to FMC stockholders (GAAP) $(204.1) $76.5 $489.0 $307.5
Corporate special charges (income):
Restructuring and other charges (income) (a) 165.8 11.5 244.0 56.4
Non-operating pension and postretirement charges (b) 15.4 2.1 35.3 10.5
Business separation costs (c) - - - 23.6
Acquisition-related charges (d) 16.3 95.3 290.3 136.0
Income tax expense (benefit) on Corporate special charges (income) (31.0) (43.3) (144.9) (84.1)
Discontinued operations attributable to FMC stockholders, net of income taxes (e) 22.4 (19.4) (676.4) (9.3)
Non-GAAP tax adjustments (f) 119.0 (8.4) 95.3 (13.8)
Adjusted after-tax earnings from continuing operations attributable to $103.8 $114.3 $332.6 $426.8
FMC stockholders (Non-GAAP)
Diluted earnings per common share (GAAP) $(1.53) $0.57 $3.66 $2.29
Corporate special charges (income) per diluted share, before tax:
Restructuring and other charges (income) 1.24 0.08 1.82 0.42
Non-operating pension and postretirement charges 0.11 0.02 0.26 0.08
Business separation costs - - - 0.17
Acquisition-related charges 0.12 0.71 2.16 1.01
Income tax expense (benefit) on Corporate special charges (income), per diluted share (0.23) (0.32) (1.08) (0.62)
Discontinued operations per diluted share 0.17 (0.15) (5.06) (0.07)
Non-GAAP tax adjustments per diluted share 0.89 (0.06) 0.71 (0.10)
Diluted adjusted after-tax earnings from continuing operations per share, attributable to FMC stockholders (Non-GAAP) $0.77 $0.85 $2.47 $3.18
===== ===== ===== =====
Average number of shares outstanding used in diluted adjusted after-tax earnings from continuing operations per share computations 134.3 134.3 134.4 134.3
===== ===== ===== =====
____________________
(a) Three Months Ended December 31, 2015:
Restructuring and other charges (income)
include a charge of $70.5 million as a
result of the mothballing of our Seal
Sands Omega-3 production facility within
Health and Nutrition, as well as $61.8
million of charges representing severance
and asset write-offs associated with the
integration of Cheminova within
Agricultural Solutions. Amount also
include $10.7 million as a result of the
Argentina government's action to devalue
its currency effective December 17, 2015.
This loss relates to the impacts of the
remeasurement of the local balance sheet
at the date of the devaluation and
impacted both our Agricultural Solutions
and Lithium segments. Finally, the amount
includes charges from continuing
environmental sites treated as a
Corporate charge of $13.4 million, a
charge of $5.5 million associated with an
agreement to obtain certain technology
and intellectual property rights related
to new compounds still under development
within Agricultural Solutions and net
miscellaneous charges of $3.9 million.
Three Months Ended December 31, 2014:
Restructuring and other charges (income)
includes income of $26.6 million
associated with a sale of a partial stake
in our 20% owned European based
distribution company offset by a charge
of $5.0 million associated with a license
agreement entered into for the purpose of
obtaining certain technology and
intellectual property rights relating to
new compounds still under development
both of which pertain our FMC
Agricultural Solutions segment.
Additionally, this amount includes
charges of $8.1 million associated with a
reorganization of our Health and
Nutrition segment and continuing
environmental sites treated as a
Corporate charge of $23.7 million.
Remaining restructuring and other charges
(income) includes net miscellaneous
charges of $1.3 million.
Twelve Months Ended December 31, 2015:
Restructuring and other charges (income)
include a charge of $70.5 million as a
result of mothballing of our Seal Sands
Omega-3 production facility within
Health and Nutrition as well as $117.3
million representing severance and asset
disposal charges associated with the
integration of Cheminova with
Agricultural Solutions. Charges also
include $23.6 million due to a
reorganization with our FMC Health and
Nutrition segment, of which, $12.3
million was due to the sale of our pectin
manufacturing business. Total charges
also include the $10.7 million due to the
Argentina currency devaluation, $21.7
million from continuing environmental
sites treated as a Corporate charge, and
$20.5 million associated with two
separate license agreements entered into
for the purpose of obtaining certain
technology and intellectual property
rights relating to new compounds still
under development within Agricultural
Solutions. Partially offsetting these
charges was other income associated with
the sale of our remaining ownership
interest in a Belgian-based pesticide
distribution company for $26.6 million.
Remaining restructuring and other charges
(income) includes net miscellaneous
charges of $6.3 million.
Twelve Months Ended December 31, 2014:
Restructuring and other charges (income)
includes income of $26.6 million
associated with a sale of a partial stake
in our 20% owned European based
distribution company offset by a charge
of $22.0 million associated with various
license agreements entered into for the
purpose of obtaining certain technology
and intellectual property rights relating
to new compounds still under development
both of which pertain our FMC
Agricultural Solutions segment.
Additionally, this amount includes
charges of $13.9 million associated with
a reorganization of our Health and
Nutrition segment and continuing
environmental sites treated as a
Corporate charge of $43.7 million.
Remaining restructuring and other charges
(income) includes net miscellaneous
charges of $3.5 million.
(b) Our non-operating pension and
postretirement costs are defined as those
costs related to interest, expected
return on plan assets, amortized
actuarial gains and losses and the
impacts of any plan curtailments or
settlements. These costs are primarily
related to changes in pension plan assets
and liabilities which are tied to
financial market performance and we
consider these costs to be outside our
operational performance. We exclude these
non-operating pension and postretirement
costs from our segments as we believe
that removing them provides a better
understanding of the underlying
profitability of our businesses, provides
increased transparency and clarity in the
performance of our retirement plans and
enhances period-over-period
comparability. We continue to include the
service cost and amortization of prior
service cost in our Adjusted Earnings
results noted above. We believe these
elements reflect the current year
operating costs to our businesses for the
employment benefits provided to active
employees.
(c) There were no charges for the twelve
months ended December 31, 2015. On
September 8, 2014, we announced that we
will no longer proceed with the planned
separation as a result of the planned
acquisition of Cheminova A/S and
divestiture of our FMC Alkali Chemicals
division. Business separation costs for
the three and twelve months ended
December 31, 2014 represent charges
associated with the planned separation
activities through September 8, 2014.
(d) Charges related to the expensing of the
inventory fair value step-up resulting
from the application of acquisition
accounting, legal and professional fees
and gains or losses on hedging purchase
price associated with the planned or
completed acquisitions. Amounts represent
the following:
Three Months Ended Twelve Months Ended
December 31 December 31
-----------
(in Millions) 2015 2014 2015 2014
---- ---- ---- ----
Acquisition-related charges - Cheminova A/S
Legal and professional fees (1) $6.6 $16.9 $60.4 $32.2
Inventory fair value amortization (2) 9.7 - 57.8 -
Loss/(gain) on hedging purchase price (1) - 78.4 172.1 99.6
Acquisition-related charges - Epax
Inventory fair value amortization (2) - - - 4.2
Acquisition-related charges $16.3 $95.3 $290.3 $136.0
===== ===== ====== ======
____________________
(1) On the condensed consolidated statements
of income (loss), these charges are
included in "Selling, general and
administrative expenses."
(2) On the condensed consolidated statements
of income (loss), these charges are
included in "Costs of sales and
services."
(e) Three and Twelve Months Ended December 31,
2015
Discontinued operations includes our FMC
Alkali Chemicals division as well as
provisions, net of recoveries, for
environmental liabilities and legal
reserves and expenses related to
previously discontinued operations. The
twelve months ended December 31, 2015
includes the divestiture gain of
approximately $700 million associated
with the sale of FMC Alkali Chemicals
division which was completed on April 1,
2015.
Three and Twelve Months Ended December 31,
2014
Discontinued operations includes our FMC
Alkali and FMC Peroxygens business
results as well as provisions, net of
recoveries, for environmental liabilities
and legal reserves and expenses related
to previously discontinued operations.
The twelve months ended December 31, 2014
includes the final divestiture charge
associated with the sale of FMC
Peroxygens business which was completed
on February 28, 2014.
(f) We exclude the GAAP tax provision,
including discrete items, from the Non-
GAAP measure of income, and instead
include a Non-GAAP tax provision based
upon the annual Non-GAAP effective tax
rate. The GAAP tax provision includes
certain discrete tax items including, but
are not limited to: income tax expenses
or benefits that are not related to
ongoing business operations in the
current year; unusual or infrequently
occurring items; tax adjustments
associated with fluctuations in foreign
currency remeasurement of certain foreign
operations; certain changes in estimates
of tax matters related to prior fiscal
years; certain changes in the
realizability of deferred tax assets; and
changes in tax law. Management believes
excluding these discrete tax items
assists investors and securities analysts
in understanding the tax provision and
the effective tax rate related to ongoing
operations thereby providing investors
with useful supplemental information
about FMC's operational performance.
Three Months Ended Twelve Months Ended
December 31 December 31
-----------
(in Millions) 2015 2014 2015 2014
---- ---- ---- ----
Non-GAAP tax adjustments:
Revisions to our tax liabilities due to finalization of prior year tax returns $2.1 $(2.3) $2.2 $(2.5)
Revisions to valuation allowances of historical deferred tax assets 120.7 - 128.3 -
Foreign currency remeasurement and foreign currency discrete items (3.8) (6.1) (35.2) (11.3)
Non-GAAP tax adjustments $119.0 $(8.4) $95.3 $(13.8)
====== ===== ===== ======
RECONCILIATION OF NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM
CONTINUING OPERATIONS, BEFORE INTEREST AND INCOME TAXES (NON-GAAP)
(Unaudited, in millions)
Three Months Ended Twelve Months Ended
December 31 December 31
----------- -----------
2015 2014 2015 2014
---- ---- ---- ----
Net income (loss) (GAAP) $(202.7) $78.3 $498.5 $322.1
Restructuring and other charges (income) 165.8 11.5 244.0 56.4
Non-operating pension and postretirement charges 15.4 2.1 35.3 10.5
Business separation costs - - - 23.6
Acquisition-related charges 16.3 95.3 290.3 136.0
Discontinued operations, net of income taxes 22.4 (19.4) (676.4) (14.5)
Interest expense, net 21.2 13.6 80.1 51.2
Provision (benefit) for income taxes 103.8 (18.4) 47.4 56.2
----- ----- ---- ----
Adjusted earnings from continuing operations, $142.2 $163.0 $519.2 $641.5
before interest, income taxes and noncontrolling interests
(Non-GAAP) (1)
___________________
(1) Referred to as Adjusted Operating Profit.
FMC CORPORATION
---------------
INDUSTRY SEGMENT DATA
---------------------
(Unaudited, in millions)
Three Months Ended Twelve Months Ended
December 31 December 31
----------- -----------
2015 2014 2015 2014
---- ---- ---- ----
Revenue
-------
FMC Agricultural Solutions $657.3 $626.9 $2,252.9 $2,173.8
FMC Health and Nutrition 172.0 191.8 785.5 828.2
FMC Lithium 70.0 69.1 238.1 256.7
Total $899.3 $887.8 $3,276.5 $3,258.7
====== ====== ======== ========
Income from continuing operations before income taxes
-----------------------------------------------------
FMC Agricultural Solutions 101.3 130.3 363.9 497.8
FMC Health and Nutrition 46.2 44.2 194.7 187.9
FMC Lithium 11.1 7.8 23.0 27.2
Segment operating profit (a) 158.6 182.3 581.6 712.9
----- ----- ----- -----
Corporate and other (16.4) (19.3) (62.4) (71.4)
Adjusted earnings from continuing operations, before interest, income $142.2 $163.0 $519.2 $641.5
taxes and noncontrolling interests (Non-GAAP)
Interest expense, net (21.2) (13.6) (80.1) (51.2)
Corporate special (charges) income:
Restructuring and other (charges) income (b) (165.8) (11.5) (244.0) (56.4)
Non-operating pension and postretirement charges (c) (15.4) (2.1) (35.3) (10.5)
Business separation charges (d) - - - (23.6)
Acquisition-related charges (e) (16.3) (95.3) (290.3) (136.0)
(Provision) benefit for income taxes (103.8) 18.4 (47.4) (56.2)
Discontinued operations, net of income taxes (f) (22.4) 19.4 676.4 14.5
Net income attributable to noncontrolling interests (1.4) (1.8) (9.5) (14.6)
---- ---- ---- -----
Net income (loss) attributable to FMC stockholders $(204.1) $76.5 $489.0 $307.5
======= ===== ====== ======
____________________
(a) Referred to as Segment Earnings.
(b) Below provides the details of restructuring
and other charges (income) by segment.
Three Months Ended December 31 Twelve Months Ended December 31
------------------------------ -------------------------------
2015 2014 2015 2014
---- ---- ---- ----
FMC Agricultural Solutions $(76.5) $21.5 $(123.7) $4.5
FMC Health and Nutrition (73.2) (8.2) (93.8) (14.1)
FMC Lithium (2.2) - (2.7) -
Corporate (13.9) (24.8) (23.8) (46.8)
Restructuring and other (charges) income $(165.8) $(11.5) $(244.0) $(56.4)
======= ====== ======= ======
(c) See Note (b) to the schedule
"Reconciliation of Net Income
(Loss) Attributable to FMC
Stockholders (GAAP) to Adjusted
After-Tax Earnings from
Continuing Operations,
Attributable to FMC Stockholders
(Non-GAAP)" for further details
on the components that make up
this line item.
(d) See Note (c) to the schedule
"Reconciliation of Net Income
(Loss) Attributable to FMC
Stockholders (GAAP) to Adjusted
After-Tax Earnings from
Continuing Operations,
Attributable to FMC Stockholders
(Non-GAAP)" for further details
on the components that make up
this line item.
(e) See Note (d) to the schedule
"Reconciliation of Net Income
(Loss) Attributable to FMC
Stockholders (GAAP) to Adjusted
After-Tax Earnings from
Continuing Operations,
Attributable to FMC Stockholders
(Non-GAAP)" for further details
on the components that make up
this line item.
(f) See Note (e) to the schedule
"Reconciliation of Net Income
(Loss) Attributable to FMC
Stockholders (GAAP) to Adjusted
After-Tax Earnings from
Continuing Operations,
Attributable to FMC Stockholders
(Non-GAAP)" for further details
on the components that make up
this line item.
FMC CORPORATION
---------------
FMC AGRICULTURAL SOLUTIONS PRO FORMA FINANCIAL RESULTS
------------------------------------------------------
(Unaudited, in millions)
In the second quarter of 2015, we began to present pro forma combined results for the FMC Agricultural Solutions segment for 2015 and 2014. We believe that reviewing our operating results by combining actual and pro forma results for the FMC Agricultural Solutions segment
for 2015 and 2014 is more useful in identifying trends in, or reaching conclusions regarding, the overall operating performance of this segment. Our pro forma segment information will include adjustments as if the Cheminova transaction had occurred on January 1, 2014. Our
pro forma data will also be adjusted for the effects of acquisition accounting but will not include adjustments for cost related to integration activities, cost savings or synergies that might be achieved by the combined businesses. Pro forma amounts to be presented will
not necessarily be indicative of what our results would have been had we operated Cheminova since January 1, 2014, nor our future results. We believe that reviewing our operating results by combining actual and pro forma results for the FMC Agricultural Solutions segment
for these periods is more useful in identifying trends in, or reaching conclusions regarding, the overall operating performance of the segment.
FMC Agricultural Solutions Pro Forma Financial Results
Three Months Ended December 31 Twelve Months Ended December 31
------------------------------ -------------------------------
(in Millions) 2015 2014 2015 2014
---- ---- ---- ----
Revenue
Revenue, FMC Agricultural Solutions, as reported (1) $657.3 $626.9 $2,252.9 $2,173.8
Revenue, Cheminova, pro forma (2) - 226.6 362.0 1,225.7
Pro Forma Combined, Revenue (3) $657.3 $853.5 $2,614.9 $3,399.5
====== ====== ======== ========
Operating Profit
Operating Profit, FMC Agricultural Solutions, as reported (1) $101.3 $130.3 $363.9 $497.8
Operating Profit, Cheminova, pro forma (2) - (19.9) 19.9 38.2
Pro Forma Combined, Operating Profit (3) $101.3 $110.4 $383.8 $536.0
====== ====== ====== ======
___________________
(1) As reported amounts are the results of
operations of FMC Agricultural
Solutions, including the results of the
Cheminova acquisition from April 21,
2015 onward.
(2) Cheminova pro forma amounts include the
historical results of Cheminova, prior
to April 21, 2015. These amounts also
include adjustments as if the Cheminova
transaction had occurred on January 1,
2014, including the effects of
acquisition accounting. The pro forma
amounts do not include adjustments for
expenses related to integration
activities, cost savings or synergies
that may have been or may be achieved by
the combined segment.
(3) The pro forma combined amounts are not
necessarily indicative of what the
results would have been had we acquired
Cheminova on January 1, 2014 or
indicative of future results.
FMC CORPORATION
---------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(Unaudited, in millions)
December 31, December 31,
2015 2014
------------- -------------
Cash and
cash
equivalents $78.6 $109.5
Trade
receivables,
net 1,851.4 1,602.5
Inventories 800.2 607.6
Other
current
assets 241.7 188.8
Deferred
income
taxes - 222.7
Current
assets
held for
sale - 203.3
Total
current
assets 2,971.9 2,934.4
======= =======
Property,
plant and
equipment,
net 1,016.4 930.0
Goodwill 776.1 352.5
Other
intangibles,
net 837.0 246.9
Deferred
income
taxes 286.9 200.1
Other
long-
term
assets 437.6 260.6
Noncurrent
assets
held for
sale - 401.5
Total
assets $6,325.9 $5,326.0
======== ========
Short-
term debt
and
current
portion
of long-
term debt $112.6 $525.2
Accounts
payable,
trade and
other 403.6 378.3
Accrued
customer
rebates 256.1 236.0
Guarantees
of vendor
financing 67.2 50.2
Accrued
pensions
and other
postretirement
benefits,
current 6.4 12.7
Other
current
liabilities 607.4 619.6
Current
liabilities
held for
sale - 88.4
--- ----
Total
current
liabilities 1,453.3 1,910.4
Long-term
debt 2,036.3 1,138.9
Long-term
liabilities 928.0 708.0
Long-term
liabilities
held for
sale - 4.7
Equity 1,908.3 1,564.0
Total
liabilities
and
equity $6,325.9 $5,326.0
======== ========
FMC CORPORATION
---------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(Unaudited, in millions)
Twelve Months Ended December 31
-------------------------------
2015 2014
---- ----
Cash provided (required) by operating activities of continuing operations (1) $(277.1) $284.9
------- ------
Cash provided (required) by operating activities of discontinued operations (80.6) 88.8
----- ----
Cash provided (required) by investing activities of continuing operations (1,285.5) (190.2)
-------- ------
Cash provided (required) by investing activities of discontinued operations 1,634.3 154.9
------- -----
Cash provided (required) by financing activities of continuing operations:
Increase (decrease) in short-term debt (547.3) (139.6)
Financing fees - (10.5)
Repayments of long-term debt (1,036.6) (34.6)
Proceeds from borrowings of long-term debt 1,650.0 3.0
Net distributions to and acquisitions of noncontrolling interests - (98.7)
Dividends paid (86.4) (78.1)
Other repurchases of common stock (3.7) (4.7)
Excess tax benefits from share-based compensation 1.4 4.7
Issuances of common stock, net 5.9 8.6
Cash provided (required) by financing activities (16.7) (349.9)
----- ------
Effect of exchange rate changes on cash (5.3) (2.2)
---- ----
Increase (decrease) in cash and cash equivalents (30.9) (13.7)
Cash and cash equivalents, beginning of year 109.5 123.2
Cash and cash equivalents, end of period $78.6 $109.5
===== ======
______________
(1) The twelve months ended December
31, 2015 includes $264.8 million
in payments associated with the
Cheminova acquisition purchase
price hedges and approximately
$340.3 million in income tax
payments principally driven by
the sale of our Alkali Chemicals
business.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fmc-corporation-announces-fourth-quarter-and-full-year-2015-results-300218481.html
SOURCE FMC Corporation
