FMC (FMC) Q4 2020 earnings summary

Executive summary

• 2020 revenue was $4.642B, up 1% reported and 7% organically; adjusted EBITDA rose 2% to $1.250B and adjusted EPS rose 2% to $6.19.

• Diamide actives generated over $1.8B in combined sales; growth in these products helped offset weakness across the rest of the portfolio.

Financial highlights

• GAAP net income attributable to stockholders rose 16% to $551.5M; diluted EPS was $4.22, versus $3.62 in 2019.

• Gross margin fell 2% to $2,052.0M; margin was 44%, versus 45%, mainly due to unfavorable foreign currency impacts.

• SG&A declined 8% to $729.7M; excluding transaction charges, it fell 5% to $676.4M. R&D declined 3% to $287.9M after cost-saving measures; projects were not cancelled.

• Operating cash flow from continuing operations increased to $736.8M from $555.6M; free cash flow rose to $544.1M from $301.8M.

Outlook and guidance

• 2021 global crop protection market expected to grow at a low-single-digit rate in U.S. dollars; higher crop prices and improved stock-to-use ratios support demand.

• 2021 revenue guidance is $4.9B–$5.1B; adjusted EBITDA $1.32B–$1.42B; adjusted diluted EPS $6.65–$7.35, excluding potential share-repurchase effects.

• 2021 free cash flow forecast is $530M–$620M; cash from continuing operations, excluding transaction-related flows, is expected at $790M–$950M.

• Planned 2021 capital additions are $160M–$200M, primarily for diamide and new-active-ingredient capacity; environmental spending is forecast at $115M–$125M across continuing and discontinued sites.