PHILADELPHIA – FMC Corporation has reported a net loss of $3.4 million for the third quarter, or $0.10 per share loss on a diluted basis, versus net income of $28.2 million in last year’s equivalent period, or $0.79 per diluted share. But despite seemingly grim financial figures, the diversified chemical company sees improvement.
“We made steady progress on all our objectives,” observed William Walter, FMC chairman, president and chief executive officer. “We delivered earnings before restructuring charges at the mid-point of our previous guidance of $0.45 to $0.50 per share despite the unfavorable impact on our Agricultural Products business of weak pest pressure in selected North American crop markets. We followed through on our commitment to take aggressive actions in Industrial Chemicals by obtaining the agreement of our joint venture partner and Astaris' lenders to implement a significant restructuring plan in Astaris that should result in $40-50 million in total annual cost savings for the phosphorus chemicals venture once fully implemented. We are ahead of our cash flow objectives and expect to generate $30-40 million of free cash in 2003.”
FMC’s net loss for the current quarter included charges of $20.2 million after-tax, or $0.57 per diluted share, relating primarily to the previously announced Astaris restructuring program, partially offset by the gain on the sale of real estate. Excluding these charges, earnings were $0.47 per diluted share for the third quarter of 2003. Third quarter revenue of $470.5 million was down 1 percent as compared with $476.6 million in the prior-year quarter.
In summary, he explained, the external business environment is challenging particularly – specifically in industrial chemicals – but FMC will continue to meet or exceed its commitments now and in the future.