FMC Corp. Earnings: Profit Lower Despite Double Digit Revenue Growth

S&P 500 (NYSE:SPY) component FMC Corporation (NYSE:FMC) reported its results for the second quarter. FMC is a chemical manufacturing company that offers solutions, applications and products to agricultural, consumer and industrial markets around the world.

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FMC Corporation Earnings Cheat Sheet

Results: Net income for FMC Corporation fell to $104.9 million (76 cents per share) vs. $107.2 million (75 cents per share) a year earlier. This is a decline of 2.1% from the year-earlier quarter.

Revenue: Rose 11.5% to $905.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FMC Corporation fell short of the mean analyst estimate of 90 cents per share. It beat the average revenue estimate of $792.7 million.

Quoting Management: Pierre Brondeau, FMC president, CEO and chairman, said, “Our second quarter 2012 results continue to demonstrate the strength of FMC’s advantaged portfolio. Agricultural Products showed vigorous growth, driven by overall strong conditions in North America and continued robust demand in Latin America. Specialty Chemicals’ results were down slightly as expected, with the continuing impacts of the operational issues we faced in our Lithium business in the first quarter offsetting steady performance from our BioPolymer business. Industrial Chemicals delivered another double-digit increase in earnings, driven by higher selling prices across the segment, particularly in soda ash, higher volumes, and the continued shift toward specialties in the Peroxygens business.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 18.3% to $940.7 million in the first quarter. The figure rose 12.1% in the fourth quarter of the last fiscal year from the year earlier and climbed 11.6% in the third quarter of the last fiscal year from the year-ago quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 4 cents, and in the fourth quarter of the last fiscal year, it was ahead by 10 cents.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 82 cents per share, down from 84 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $3.48 per to share to $3.49.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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