FMC Hits 52-Week Lows After Cutting Outlook

FMC Corp (FMC:US) shares hit fresh 1-year high lows on Monday after the chemicals company was forced to meaningfully lower its full-year outlook.

The FMC stock opened as much as 8% lower on Monday after saying that it is revising its forecast expectations after “abrupt and unprecedented reductions in channel inventory by customers in North America, Latin America and EMEA started in late-May and materially impacted volumes in the quarter.”

As a result, FMC said it sees Q2 sales at just over $1 billion, a 30% cut to the prior Q2 forecast of $1.45 billion at the midpoint of the guidance range. Q2 Ebitda is now seen at $185 million - $190 million, nearly half of the prior $350 million - $370 million range.

For the full year, the company sees adjusted Ebitda of $1.35 billion on revenue of $5.3 billion (midpoint), compared to the prior forecast for adjusted Ebitda of $1.53 billion on revenue of $6.15 billion.

“Our full-year outlook for revenue and adjusted EBITDA has been revised to reflect these channel dynamics and their impact to volumes, as well as the benefit from improved input costs and the significant operating cost mitigation actions we have already implemented,” said CEO Mark Douglas. 

"Even as we manage through this market contraction and significant inventory reduction by our channel partners, on-the-ground consumption of our products remains strong and at similar levels to last year," he added.

Congressman Ro Khanna disclosed in May that he sold some FMC shares on April 10, when the stock closed at $119.07. Shares were seen trading on Monday about 25% lower compared to the prices where Khanna was selling the stock.