FMC Corp (NYSE:FMC), a leading global agricultural sciences company, stock fell 1.03% (As on June 22, 11:16:04 AM UTC-4,Source: Google Finance) though the company upgraded by research analysts at Bank of America from an “underperform” rating to a “buy”. For nearly four decades, FMC has provided proprietary insect, disease and weed control technologies to ensure that Chinese farmers have access to world-class product technologies. The company employs more than 600 people in China, where it operates a world-class innovation center in Shanghai and two manufacturing facilities in Shanghai and Jiangsu. The company recently announced the Ningbo Intermediate People’s Court in Zhejiang Province, China, granted FMC Agro Singapore Pte. Ltd a pre-suit preliminary injunction to stop infringement of a chlorantraniliprole patent. Chlorantraniliprole is FMC’s leading insecticide ingredient branded as Rynaxypyr active. The pre-suit preliminary injunction restrains Zhejiang Yongtai Technology Co. Ltd. from engaging in any activity of offering to sell chlorantraniliprole until FMC’s patent expires, including by doing so at trade fairs.
For full year 2022, the company has maintained revenue outlook of $5.25 to $5.55 billion, reflecting 7 percent growth at the midpoint versus 2021. The company maintains adjusted EBITDA outlook of $1.32 to $1.48 billion, reflecting 6 percent growth at the midpoint versus 2021. The company has updated adjusted earnings per diluted share outlook to $6.70 to $8.00, reflecting 6 percent growth at the midpoint versus 2021, excluding any impact from potential 2022 share repurchases. The company maintains free cash flow outlook of $515 to $735 million and continues to expect to repurchase $500 to $600 million of FMC shares in 2022.
Meanwhile, FMC revenue growth was driven by an 8 percent contribution from volume and an 8 percent contribution from price, offset partially by a 3 percent headwind from foreign currencies, especially in EMEA. North America had a record quarter with broad-based sales growth of 30 percent versus first quarter 2021. Volume and price gains were robust across several crops including tree fruits, nuts, vines, corn and soy. Canada grew a record-breaking 60 percent year-over-year driven by low channel inventories for insecticides and robust demand for selective herbicides. FMC first quarter adjusted EBITDA was $355 million, an increase of 16 percent from the prior-year period. This increase was driven primarily by pricing gains across all regions and volume gains led by Latin America and North America.