FMC CORPORATION PHILADELPHIA, Feb. 6, 2017 /PRNewswire/ --
Fourth Quarter 2016 Highlights
-- Consolidated revenue of $866 million, down 4 percent versus Q4 '15
-- Consolidated GAAP earnings per diluted share of $0.12
-- Consolidated adjusted earnings per diluted share of $0.88, up 14 percent
versus Q4 '15
-- Agricultural Solutions segment earnings of $127 million, up 25 percent
versus Q4 '15
-- Health and Nutrition segment earnings of $54 million, up 17 percent
versus Q4 '15
-- Lithium segment earnings of $21 million, up over 90 percent versus Q4
'15
-- 2017 adjusted earnings is expected to be in the range of $3.20 to $3.60
per diluted share(1)
FMC Corporation (NYSE:FMC) today reported fourth quarter and full year 2016 results. For the year, FMC reported revenue of $3.28 billion, up slightly compared to 2015. The company reported earnings of $209 million, or $1.56 per diluted share. Excluding various restructuring charges, adjusted earnings were $2.82 per diluted share, an increase of 14 percent compared to the prior year.
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For the fourth quarter, FMC reported revenue of $866 million, a 4 percent decrease over the same period in 2015. The company reported earnings of $16 million, or $0.12 per diluted share, in the fourth quarter of 2016, as compared to a loss of $1.53 per diluted share in the fourth quarter of 2015. Excluding various restructuring charges, adjusted earnings were $0.88 per diluted share for the fourth quarter of 2016, an increase of 14 percent compared to the prior year quarter.
Pierre Brondeau, FMC president, CEO and chairman said: "FMC delivered another solid quarter, to cap a year of strong quarterly performances. In Ag Solutions, we focused on maintaining price and terms rather than volume, and we rationalized low-margin products to improve the foundations of that business. Despite headwinds from Omega 3, Health and Nutrition delivered another year of strong margins and cash flow. Lithium tripled earnings by executing on its growth strategy and taking advantage of favorable market conditions. The actions we have taken throughout 2016 position FMC to deliver significant earnings growth in 2017."
FMC Agricultural Solutions
FMC Agricultural Solutions reported fourth quarter revenue of $618 million and segment earnings of $127 million. Fourth quarter segment revenue declined 6 percent year-over-year, principally due to lower sales in Latin America and Europe. Segment earnings, however, increased 25 percent compared to the fourth quarter of 2015, driven by our ability to maintain pricing, principally in Latin America, despite the strengthening of the U.S. dollar.
Segment revenue for 2016 was $2.27 billion, a 1 percent increase compared to the prior year, while full-year segment earnings were $400 million, a 10 percent increase compared to the prior year. Segment earnings margin improved 140 basis points to 17.6 percent.
For 2017, full-year segment revenue is expected to be approximately $2.2 billion to $2.4 billion and full-year segment earnings are expected to be in the range of $410 million to $450 million, an increase of 8 percent at the mid-point compared to the prior year. First quarter segment earnings are expected to be in the range of $60 million to $70 million, a decrease of approximately 20 percent at the mid-point compared to the prior year quarter. Earnings growth in 2017 is expected to be driven by lower operating costs and higher volumes, offset partially by unfavorable foreign exchange.
FMC Health and Nutrition
FMC Health and Nutrition reported fourth quarter segment revenue of $177 million and segment earnings of $54 million. Revenue increased 3 percent and segment earnings increased 17 percent compared to the fourth quarter 2015. The earnings increase was largely due to lower manufacturing costs, as expected. Segment revenue for 2016 was $744 million, 5 percent lower than 2015, while full-year segment earnings were $191 million, 2 percent lower than 2015.
Segment revenue for the full year of 2017 is anticipated to be approximately $750 million to $790 million, while full-year segment earnings are expected to be between $190 million and $200 million, an increase of 2 percent at the mid-point compared to the prior year. First quarter segment earnings are expected to be in the range of $45 million to $50 million, roughly flat at the mid-point compared to the prior year quarter. Earnings growth in 2017 is expected to be driven by higher sales and improved mix.
FMC Lithium
FMC Lithium reported fourth quarter segment revenue of $71 million, an increase of 1 percent from the prior-year quarter. Segment earnings increased to $21 million in the quarter versus $11 million in the prior-year quarter. Higher prices contributed the bulk of the increase in segment earnings. Segment revenue for 2016 was $264 million, 11 percent higher than 2015, while full-year segment earnings were $70 million, which was more than triple the segment earnings from 2015.
Segment revenue for the full year of 2017 is anticipated to be approximately $315 million to $355 million, while full-year segment earnings are expected to be between $90 million and $110 million, an increase of over 40 percent at the mid-point compared to the prior year. First quarter segment earnings are expected to be in the range of $18 million to $22 million, an increase of approximately 35 percent at the mid-point compared to the prior year quarter. Earnings growth in 2017 is expected to be driven primarily by volume from our hydroxide expansion and higher prices for our hydroxide products.
2017 Outlook
FMC expects adjusted earnings per share to be in the range of $3.20 to $3.60 for the full year 2017, an increase of 20 percent (at the mid-point) versus 2016 adjusted earnings per share of $2.82.(1)
Webcast and Supplemental Information
The company will post supplemental information on the web at www.FMC.com, including its 2017 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. Revenue totaled approximately $3.3 billion in 2016. 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 2015 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.
This press release contains certain "non-GAAP financial terms" which are defined on our website www.fmc.com. In addition, we have also provided on our website at www.fmc.com reconciliations of non-GAAP terms to the most directly comparable GAAP term.
1. Although we provide forecasts for adjusted earnings per share and adjusted cash from operations (both of which are non-GAAP financial measures), we are not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for us to forecast. Such elements include, but are not limited to restructuring, acquisition charges, and discontinued operations and related cash activity. As a result, no GAAP outlook is provided.
FMC CORPORATION
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
-------------------------------------------------
(Unaudited, in millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 2016 2015
---- ---- ---- ----
Revenue $865.6 $899.3 $3,282.4 $3,276.5
Costs of sales and services 528.0 600.7 2,082.6 2,201.1
Gross margin 337.6 298.6 1,199.8 1,075.4
----- ----- ------- -------
Selling, general and administrative expenses 156.1 147.0 529.5 737.9
Research and development expenses 38.2 40.9 141.5 143.7
Restructuring and other charges (income) 68.2 165.8 107.3 244.0
Total costs and expenses 790.5 954.4 2,860.9 3,326.7
----- ----- ------- -------
Income (loss) from operations 75.1 (55.1) 421.5 (50.2)
Equity in (earnings) loss of affiliates (0.1) 0.2 (0.5) 0.2
Interest expense, net 21.6 21.2 82.7 80.1
Income (loss) from continuing operations before income taxes 53.6 (76.5) 339.3 (130.5)
Provision (benefit) for income taxes 18.4 103.8 93.9 47.4
Income (loss) from continuing operations 35.2 (180.3) 245.4 (177.9)
Discontinued operations, net of income taxes (18.8) (22.4) (33.7) 676.4
Net income (loss) $16.4 $(202.7) $211.7 $498.5
----- ------- ------ ------
Less: Net income attributable to noncontrolling interests 0.5 1.4 2.6 9.5
Net income (loss) attributable to FMC stockholders $15.9 $(204.1) $209.1 $489.0
===== ======= ====== ======
Amounts attributable to FMC stockholders:
Income (loss) from continuing operations, net of tax $34.7 $(181.7) $242.8 $(187.4)
Discontinued operations, net of tax (18.8) (22.4) (33.7) 676.4
Net income (loss) $15.9 $(204.1) $209.1 $489.0
===== ======= ====== ======
Basic earnings (loss) per common share attributable to FMC stockholders:
Continuing operations $0.26 $(1.36) $1.81 $(1.40)
Discontinued operations (0.14) (0.17) (0.25) 5.06
Basic earnings per common share $0.12 $(1.53) $1.56 $3.66
===== ====== ===== =====
Average number of shares outstanding used in basic earnings per share computations 133.9 133.7 133.9 133.7
===== ===== ===== =====
Diluted earnings (loss) per common share attributable to FMC stockholders:
Continuing operations $0.26 $(1.36) $1.81 $(1.40)
Discontinued operations (0.14) (0.17) (0.25) 5.06
Diluted earnings per common share $0.12 $(1.53) $1.56 $3.66
===== ====== ===== =====
Average number of shares outstanding used in diluted earnings per share computations 134.8 133.7 134.5 133.7
===== ===== ===== =====
Other Data:
-----------
Capital additions $38.0 $42.5 $128.1 $118.6
Depreciation and amortization expense $35.6 $23.5 $137.1 $115.7
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,
2016 2015 2016 2015
---- ---- ---- ----
Net income (loss) attributable to FMC stockholders (GAAP) $15.9 $(204.1) $209.1 $489.0
Corporate special charges (income):
Restructuring and other charges (income) (a) 68.2 165.8 107.3 244.0
Non-operating pension and postretirement charges (b) 22.8 15.4 25.1 35.3
Acquisition-related charges (c) 6.6 16.3 23.4 290.3
Income tax expense (benefit) on Corporate special charges (income) (d) (32.1) (31.0) (48.5) (144.9)
Discontinued operations, net of income taxes (e) 18.8 22.4 33.7 (676.4)
Non-GAAP tax adjustments (f) 18.6 119.0 29.7 95.3
Adjusted after-tax earnings from continuing operations attributable to FMC stockholders (Non-GAAP) (1) $118.8 $103.8 $379.8 $332.6
====== ====== ====== ======
Diluted earnings per common share (GAAP) $0.12 $(1.53) $1.56 $3.66
Corporate special charges (income) per diluted share, before tax:
Restructuring and other charges (income) 0.51 1.24 0.80 1.82
Non-operating pension and postretirement charges 0.17 0.11 0.19 0.26
Acquisition-related charges 0.05 0.12 0.17 2.16
Income tax expense (benefit) on Corporate special charges (income), per diluted share (0.24) (0.23) (0.36) (1.08)
Discontinued operations per diluted share 0.14 0.17 0.25 (5.06)
Non-GAAP tax adjustments per diluted share 0.13 0.89 0.21 0.71
Diluted adjusted after-tax earnings from continuing operations per share, attributable to FMC stockholders (Non-GAAP) $0.88 $0.77 $2.82 $2.47
===== ===== ===== =====
Average number of shares outstanding used in diluted adjusted after-tax earnings from continuing operations per share computations (2) 134.8 134.3 134.5 134.4
===== ===== ===== =====
____________________
(1) 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
and securities analysts. Adjusted
earnings excludes the effects of
Corporate special charges, tax-related
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.
(2) The average number of shares outstanding
used in the three and twelve months ended
December 31, 2015 diluted adjusted after-
tax earnings from continuing operations
per share computation (Non-GAAP)
includes 0.5 million and 0.7 million
diluted shares, respectively. The 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.
(a) Three Months Ended December 31, 2016:
Restructuring and other charges (income)
includes charges of $27.6 million
representing final adjustments to
severance, asset write-offs, and other
costs associated with the integration of
Cheminova within Agricultural Solutions.
In the fourth quarter, we also entered
into an agreement to obtain certain
technology and intellectual property
rights related to compounds still under
development for our Agricultural
Solutions businesses. The $13.2 million
paid to acquire these rights was expensed
as in-process research and development
costs. Restructuring and other charges
(income) also includes $19.4 million of
charges for continuing environmental
sites treated as a Corporate charge.
Amounts also include miscellaneous
restructuring charges totaling $7.1
million and other charges of $0.9
million.
Three Months Ended December 31, 2015:
Restructuring and other charges (income)
includes 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
includes $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.
Twelve Months Ended December 31, 2016:
Restructuring and other charges (income)
includes charges of $42.3 million
representing final adjustments to
severance, asset write-offs, and other
costs associated with the integration of
Cheminova within Agricultural Solutions.
Integration-related costs associated
with the integration of Cheminova were
completed at the end of 2016. Amount also
includes other miscellaneous
restructuring costs of $11.1 million.
Additionally, restructuring and other
charges (income) includes $36.8 million
of charges for continuing environmental
sites treated as Corporate charges, $13.2
million associated with a license
agreement to obtain certain technology
and intellectual property rights for new
compounds still under development, and
$4.2 million as a result of the Argentina
government's action to devalue its
currency. These charges were offset by
other miscellaneous income of $0.3
million.
Twelve Months Ended December 31, 2015:
Restructuring and other charges (income)
includes 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.
(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) 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) 2016 2015 2016 2015
---- ---- ---- ----
Acquisition related charges
Legal and professional fees (1)(2) $6.6 $6.6 $23.4 $60.4
Inventory fair value amortization (3) - 9.7 - 57.8
Loss/(gain) on hedging purchase price (2) - - - 172.1
Total Acquisition-related charges (4) $6.6 $16.3 $23.4 $290.3
==== ===== ===== ======
____________________
(1) Represents transaction costs, costs for
transitional employees, other acquired
employee related costs and integration-
related legal and professional third-
party fees.
(2) These charges are included in "Selling,
general and administrative expenses" on
the condensed consolidated statements of
income (loss).
(3) These charges are included in "Costs of
sales and services" on the condensed
consolidated statements of income (loss).
(4) Acquisition-related charges associated
with the integration of Cheminova with
Agricultural Solutions were completed at
the end of 2016.
(d) The income tax expense (benefit) on
Corporate special charges (income) is
determined using the applicable rates in
the taxing jurisdictions in which the
Corporate special charge or income
occurred and includes both current and
deferred income tax expense (benefit)
based on the nature of the non-GAAP
performance measure.
(e) Three and Twelve Months Ended December 31,
2016 and 2015:
Discontinued operations includes, in
periods up to its sale, 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.
(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) 2016 2015 2016 2015
---- ---- ---- ----
Non-GAAP tax adjustments:
Revisions to our tax liabilities due to finalization of prior year tax returns $0.7 $2.1 $3.0 $2.2
Revisions to valuation allowances of historical deferred tax assets 18.5 120.7 18.9 128.3
Foreign currency remeasurement and other discrete items (0.6) (3.8) 7.8 (35.2)
Non-GAAP tax adjustments $18.6 $119.0 $29.7 $95.3
===== ====== ===== =====
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,
2016 2015 2016 2015
---- ---- ---- ----
Net income (loss) (GAAP) $16.4 $(202.7) $211.7 $498.5
Restructuring and other charges (income) 68.2 165.8 107.3 244.0
Non-operating pension and postretirement charges 22.8 15.4 25.1 35.3
Acquisition-related charges 6.6 16.3 23.4 290.3
Discontinued operations, net of income taxes 18.8 22.4 33.7 (676.4)
Interest expense, net 21.6 21.2 82.7 80.1
Provision (benefit) for income taxes 18.4 103.8 93.9 47.4
---- ----- ---- ----
Adjusted earnings from continuing operations, $172.8 $142.2 $577.8 $519.2
before interest, income taxes and noncontrolling interests
(Non-GAAP) (1)
___________________
(1) Referred to as Adjusted
Operating Profit.
RECONCILIATION OF CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES (GAAP) TO
ADJUSTED CASH FROM OPERATIONS
(Unaudited, in millions)
Twelve Months Ended
December 31,
2016 2015
---- ----
Cash provided (required) by operating activities (GAAP) $537.3 $(277.1)
Transaction and integration costs related to acquisition of Cheminova 23.4 60.4
Hedge settlement of Cheminova - 264.8
U.S. federal income tax payments, net of refunds related to M&A activities - 316.7
Adjusted cash from operations (Non-GAAP) (1) $560.7 $364.8
====== ======
___________________
(1) The Company believes that the
Non-GAAP financial measure
"Adjusted cash from operations"
provides useful information
about the Company's cash flows
to investors and securities
analysts. Adjusted cash from
operations excludes the effects
of acquisition-related cash
flows. The Company also
believes that excluding the
effects of these items from
cash provided (required) by
operating activities allows
management and investors to
compare more easily the cash
flows from period to period.
FMC CORPORATION
---------------
INDUSTRY SEGMENT DATA
---------------------
(Unaudited, in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 2016 2015
---- ---- ---- ----
Revenue
-------
FMC Agricultural Solutions $617.8 $657.3 $2,274.8 $2,252.9
FMC Health and Nutrition 177.2 172.0 743.5 785.5
FMC Lithium 70.6 70.0 264.1 238.1
----
Total $865.6 $899.3 $3,282.4 $3,276.5
====== ====== ======== ========
Income from continuing operations before income taxes
-----------------------------------------------------
FMC Agricultural Solutions 127.1 101.3 399.9 363.9
FMC Health and Nutrition 54.0 46.2 191.3 194.7
FMC Lithium 21.3 11.1 70.2 23.0
Segment operating profit (a) 202.4 158.6 661.4 581.6
----- ----- ----- -----
Corporate and other (29.6) (16.4) (83.6) (62.4)
Adjusted earnings from continuing operations, before interest, income taxes and noncontrolling interests (Non-
GAAP) $172.8 $142.2 $577.8 $519.2
------ ------ ------ ------
Interest expense, net (21.6) (21.2) (82.7) (80.1)
Corporate special (charges) income:
Restructuring and other (charges) income (b) (68.2) (165.8) (107.3) (244.0)
Non-operating pension and postretirement charges (c) (22.8) (15.4) (25.1) (35.3)
Acquisition-related charges (d) (6.6) (16.3) (23.4) (290.3)
(Provision) benefit for income taxes (18.4) (103.8) (93.9) (47.4)
Discontinued operations, net of income taxes (e) (18.8) (22.4) (33.7) 676.4
Net income (loss) attributable to noncontrolling interests (0.5) (1.4) (2.6) (9.5)
---- ---- ---- ----
Net income (loss) attributable to FMC stockholders $15.9 $(204.1) $209.1 $489.0
===== ======= ====== ======
____________________
(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,
2016 2015 2016 2015
---- ---- ---- ----
FMC Agricultural Solutions $(40.8) $(76.5) $(62.0) $(123.7)
FMC Health and Nutrition (6.0) (73.2) (10.0) (93.8)
FMC Lithium - (2.2) (0.6) (2.7)
Corporate (21.4) (13.9) (34.7) (23.8)
Restructuring and other (charges) income $(68.2) $(165.8) $(107.3) $(244.0)
===
(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 (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. We believe that reviewing our operating results by combining actual and pro forma results for the FMC Agricultural Solutions segment for 2015 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, 2015. 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, 2015, 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
Twelve Months Ended December 31,
(in Millions) 2016 2015
---- ----
Revenue
Revenue, FMC
Agricultural
Solutions, as
reported (1) $2,274.8 $2,252.9
Revenue,
Cheminova, pro
forma (2) - 362.0
Pro Forma
Combined,
Revenue (3) $2,274.8 $2,614.9
======== ========
Operating
Profit
Operating
Profit, FMC
Agricultural
Solutions, as
reported (1) $399.9 $363.9
Operating
Profit,
Cheminova, pro
forma (2) - 19.9
Pro Forma
Combined,
Operating
Profit (3) $399.9 $383.8
====== ======
___________________
(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, 2015,
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, 2015 or indicative
of future results. For the
three and twelve months ended
December 31, 2016 and for the
three months ended December
31, 2015, pro forma results
and actual results are the
same.
FMC CORPORATION
---------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(Unaudited, in millions)
December 31, 2016 December 31, 2015
----------------- -----------------
Cash
and
cash
equivalents $64.2 $78.6
Trade
receivables, in
net 2015
of
allowance
of
$17.8
in
2016
and
$13.9 1,828.0 1,851.4
Inventories 703.5 800.2
Other
current
assets 253.5 241.7
Total
current
assets 2,849.2 2,971.9
------- -------
Property,
plant
and
equipment,
net 1,002.1 1,016.4
Goodwill 777.5 776.1
Other
intangibles,
net 793.4 837.0
Deferred
income
taxes 244.8 286.9
Other
long-
term
assets 472.3 437.6
Total
assets $6,139.3 $6,325.9
======== ========
Short-
term
debt
and
current
portion
of
long-
term
debt $94.2 $112.6
Accounts
payable,
trade
and
other 355.4 403.6
Accrued
customer
rebates 249.9 256.1
Guarantees
of
vendor
financing 104.6 67.2
Accrued
pensions
and
other
postretirement
benefits,
current 7.1 6.4
Other
current
liabilities 627.0 607.4
Total
current
liabilities 1,438.2 1,453.3
------- -------
Long-
term
debt,
less
current
portion 1,798.8 2,036.3
Long-
term
liabilities 909.3 928.0
Equity 1,993.0 1,908.3
Total
liabilities
and
equity $6,139.3 $6,325.9
======== ========
FMC CORPORATION
---------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(Unaudited, in millions)
Twelve Months Ended December 31,
2016 2015
---- ----
Cash provided (required) by operating activities of continuing operations (1) $537.3 $(277.1)
------ -------
Cash provided (required) by operating activities of discontinued operations (39.5) (80.6)
----- -----
Cash provided (required) by investing activities of continuing operations (139.2) (1,285.5)
------ --------
Cash provided (required) by investing activities of discontinued operations 4.0 1,634.3
--- -------
Cash provided (required) by financing activities of continuing operations:
Increase (decrease) in short-term debt (19.4) (547.3)
Financing fees (0.7) -
Repayments of long-term debt (242.6) (1,036.6)
Proceeds from borrowings of long-term debt 2.8 1,650.0
Acquisition of noncontrolling interest (20.0) -
Dividends paid (88.6) (86.4)
Repurchases of common stock under publicly announced program (11.2) -
Other repurchases of common stock (1.8) (3.7)
Excess tax benefits from share-based compensation 0.4 1.4
Issuances of common stock, net 4.1 5.9
Cash provided (required) by financing activities (377.0) (16.7)
------ -----
Effect of exchange rate changes on cash - (5.3)
--- ----
Increase (decrease) in cash and cash equivalents (14.4) (30.9)
Cash and cash equivalents, beginning of year 78.6 109.5
Cash and cash equivalents, end of period $64.2 $78.6
===== =====
___________________
(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-2016-results-300402803.html
SOURCE FMC Corporation
