Herbicide maker FMC beats profit estimates on uptick in sales volumes
July 31 (Reuters) -Agrichemicals firm FMC FMC.N beat Wall Street estimates for quarterly profit on Wednesday, aided by a revamp to rein in costs and strong sales volumes in key markets U.S. and Brazil.
Shares rose 5.6% after the bell.
FMC took a slew of actions as part of its restructuring plan last year including layoffs in its Brazil business. It also said it would sell its global specialty solutions business to private equity firm-owned Envu for $350 million.
Demand for crop protection products is showing signs of improvement in North America following a downturn in 2023 as herbicide and pesticide inventories remained low.
FMC said second-quarter revenue growth of 2% was driven by 14% increase in volume.
The Philadelphia-based company posted adjusted income of 63 cents per share for the three months ended June 30, compared with analysts' average estimate of 55 cents, according to LSEG data.
However, FMC lowered its 2024 revenue outlook to the range of $4.30 billion to $4.50 billion, from $4.50 billion to $4.70 billion, projected earlier as it expects to see pricing pressure. Rival Corteva CTVA.N had also trimmed its sales estimates earlier in the day.
Crop prices have declined this year amid improvement in global supplies and forced farmers to tighten their spending.
Reporting by Sourasis Bose in Bengaluru; Editing by Sriraj Kalluvila
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