FMC Corporation reported revenue of $1,04 billion in the second quarter of 2024. This represents a 2% increase over the same period in 2023 and organic growth of 4%. Earnings per diluted share reached US$2,35, an increase of 879%, driven by tax incentives granted to the company's Swiss subsidiaries. Adjusted earnings per share were $0,63, an increase of 26%.
The president and CEO of FMC, Pierre Brondeau (in the photo), highlighted the improvement in demand in the second quarter. This resulted in a significant increase in sales volumes, especially in the United States and Brazil. Revenue was driven by a 14% increase in volume, offset by a 10% drop in prices and a 2% negative impact due to exchange rate variation.
In North America, sales increased 24%, mainly due to higher herbicide volumes. In Latin America, revenue grew 14%, driven by increased volumes in Brazil. Sales in Asia decreased by 28%, affected by continued destocking in India. In the EMEA region, sales fell 3%, but remained stable when adjusted for exchange rate variation.
FMC's adjusted EBITDA in the second quarter was $202 million, an increase of 8%. Operating cash flow was $292 million, an increase of $161 million. This resulted in free cash flow of $280 million for the quarter. Through June 30, year-to-date free cash flow was $93 million, approximately $915 million more than the previous year.
The company adjusted its annual revenue forecast for 2024 to a range between US$4,30 billion and US$4,50 billion, a 2% reduction compared to 2023. Adjusted EBITDA for the year is expected to be between US$880 million and US$940 million, a drop of 7% compared to the previous year. Adjusted earnings per diluted share are expected to be between $3,02 and $3,64, a 12% drop. The free cash flow forecast was adjusted to a range between US$400 million and US$500 million.
Sales in the second half of 2024 are expected to be between US$2,34 billion and US$2,54 billion, an increase of 15% compared to the previous year. In the third quarter, revenue is expected to range between US$1 billion and US$1,09 billion, with adjusted EBITDA between US$165 million and US$195 million. For the fourth quarter, expected revenue is between US$1,34 billion and US$1,45 billion, with adjusted EBITDA between US$353 million and US$383 million.
Pierre Brondeau commented that the recovery in demand is slower than expected. He expects demand to increase throughout the year despite careful inventory management by customers. The company's revised guidance reflects a more modest market improvement, with the company's differentiated product portfolio and restructuring actions driving earnings growth. This positions FMC solidly for 2025.
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