Why Is FMC Corporation Stock Falling Overnight? – FMC (NYSE:FMC)
FMC Corporation (NYSE:FMC) shares are trending on Thursday.
Check out the current price of FMC stock here.
Shares of the Pennsylvanian company dropped 26.55% in after-hours trading on Wednesday to $21.33 after the company reported a $510 million write-down on its India commercial business and announced a dividend cut.
India Business Write-Down Drives Losses
FMC Corporation reported a generally accepted accounting principles (GAAP) net loss of $569.3 million, or $4.52 per diluted share, in the third quarter, compared with a net income of $65 million a year earlier. The company said the decline was mainly due to charges tied to its India commercial business, which is classified as held-for-sale.
The India business, previously valued at about $960 million, was written down to an estimated fair value of $450 million, according to a preliminary valuation by outside advisors.
Along with a formal impairment charge of about $227 million, FMC also reported pre-sale commercial adjustments of about $282 million, including product returns and pricing adjustments intended to speed up receivables collection and maximize working capital.
Revenue Declines and Lowered Guidance
FMC Corporation reported third-quarter revenue of $542 million, down 49% from the third quarter of 2024, primarily due to one-time commercial actions in India to prepare the business for sale. Excluding India, revenue fell 4% on a like-for-like basis. Pricing dropped 6%, with half resulting from cost-plus contract adjustments with diamide partners due to lower manufacturing costs, and the other half from increased competition from generics in Latin America and Asia.
At the midpoint of 2024, the agricultural sciences company reduced its full-year revenue guidance by 7% to a range of $3.92 billion to $4.02 billion. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast was lowered by 6%, to a range of $830 million to $870 million.
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Guidance for free cash flow was reduced to a range of zero to negative $200 million.
Dividend Reduced for Debt Reduction
The Board of Directors reduced the quarterly dividend to $0.08 per share.
Pierre Brondeau, chairman and CEO of FMC Corporation, said, “To further prioritize cash generation and debt reduction, the FMC Board of Directors has made the decision to reduce the dividend.”
President Steps Down Amid Restructuring
In a separate press release, FMC also announced that Ronaldo Pereira, president, will step down effective December 15. The decision was reached by mutual agreement between Pereira and Brondeau. “We are grateful for Ronaldo’s tremendous dedication and efforts in leading FMC during his tenure as president,” Brondeau said.
Pereira will remain available in an advisory role until December 15 to ensure a smooth transition.
Regional Performance and Cost Actions
Year-over-year performance varied across regions.
| Region | Year-over-Year Change | Key Driver |
|---|---|---|
| North America | +4% | Higher volume |
| Latin America | -8% | Decline in sales |
| Asia (excluding India) | -47% | Significant sales drop |
Compared with the third quarter of 2024, the company’s adjusted earnings per share (EPS) rose 30% to 89 cents.
To shift production away from expensive plants and toward lower-cost sources, FMC is changing its manufacturing footprint.
Stock Performance
The stock is down 40.42% year-to-date, with a 52-week range of $28.71 to $67.75 and a market capitalization of $3.63 billion.
Price Action: FMC Corp closed Wednesday at $29.04, down 4.91%, according to Benzinga Pro data.
Benzinga Edge Stock Rankings show that FMC is trending downward across all time frames. Here is how the stock fares on other parameters.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.