FMC Corp Files Q2 2024 10-Q

Ticker: FMC · Form: 10-Q · Filed: Aug 1, 2024 · CIK: 37785

Sentiment: neutral

Topics: 10-Q, financials, chemicals

TL;DR

FMC Corp's Q2 2024 10-Q is in! Check financials for performance.

AI Summary

FMC Corporation filed its 10-Q for the period ending June 30, 2024. The company reported its financial performance and condition, including details on its assets, liabilities, and expenses. Specific figures for revenue, net income, and cash flows are detailed within the filing, providing a snapshot of the company's operational and financial health.

Why It Matters

This filing provides investors and analysts with crucial financial data for FMC Corporation, enabling informed decisions about the company's performance and future prospects.

Risk Assessment

Risk Level: medium — As a publicly traded company, FMC Corp is subject to market fluctuations, regulatory changes, and competitive pressures inherent in the chemicals industry.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of FMC Corporation?

FMC Corporation is primarily involved in the chemicals industry, as indicated by its Standard Industrial Classification code [2800].

When was FMC Corporation incorporated?

The filing indicates FMC Corporation is incorporated in Delaware (DE).

What is the physical address of FMC Corporation?

FMC Corporation's business and mailing address is 2929 WALNUT STREET, PHILADELPHIA, PA 19104.

What is the accession number for this filing?

The accession number for this 10-Q filing is 0000037785-24-000102.

What is the SEC file number for FMC Corporation?

The SEC file number for FMC Corporation is 001-02376.

Filing Stats: 4,886 words · 20 min read · ~16 pages · Grade level 6.8 · Accepted 2024-08-01 13:52:30

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3 Consolidated Statements of Income (Loss) - Three and six months ended June 30 , 2024 and 2023 (unaudited) 3 Consolidated Statements of Comprehensive Income (Loss) - Three and si x months ended June 3 0 , 2024 and 2023 (unaudited) 4 Consolidated Balance Sheets - June 30 , 2024 (unaudited) and December 31, 2023 5 Consolidated Statements of Cash Flows - Six months ended June 30 , 2024 and 2023 (unaudited) 6 Consolidated Statements of Changes in Equity - Three and six months ended J une 30 , 2024 and 2023 (unaudited) 8

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 52

Controls and Procedures

Item 4. Controls and Procedures 52

- OTHER INFORMATION

Part II - OTHER INFORMATION 54

Legal Proceedings

Item 1. Legal Proceedings 54

Risk Factors

Item 1A. Risk Factors 54

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 55

Other Information

Item 5. Other Information 55

Exhibits

Item 6. Exhibits 55

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS FMC CORPORATION CONSOLIDATED STATEMENTS OF INCOME (LOSS) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in Millions, Except Per Share Data) (unaudited) (unaudited) Revenue $ 1,038.4 $ 1,014.5 $ 1,956.4 $ 2,358.8 Costs and Expenses Costs of sales and services 640.3 581.7 1,218.6 1,344.7 Gross margin $ 398.1 $ 432.8 $ 737.8 $ 1,014.1 Selling, general and administrative expenses 164.8 205.6 328.7 391.5 Research and development expenses 75.9 87.7 136.8 166.1 Restructuring and other charges (income) 95.1 7.3 136.0 19.8 Total costs and expenses $ 976.1 $ 882.3 $ 1,820.1 $ 1,922.1 Income from continuing operations before non-operating pension and postretirement charges (income), interest expense, net and income taxes $ 62.3 $ 132.2 $ 136.3 $ 436.7 Non-operating pension and postretirement charges (income) 4.2 4.6 8.5 9.2 Interest expense, net 63.6 64.5 125.3 115.9 Income (loss) from continuing operations before income taxes $ ( 5.5 ) $ 63.1 $ 2.5 $ 311.6 Provision (benefit) for income taxes ( 303.5 ) 9.2 ( 304.9 ) 50.3 Income (loss) from continuing operations $ 298.0 $ 53.9 $ 307.4 $ 261.3 Discontinued operations, net of income taxes ( 2.8 ) ( 21.5 ) ( 15.3 ) ( 33.0 ) Net income (loss) $ 295.2 $ 32.4 $ 292.1 $ 228.3 Less: Net income (loss) attributable to noncontrolling interests 0.1 1.9 ( 0.3 ) 1.8 Net income (loss) attributable to FMC stockholders $ 295.1 $ 30.5 $ 292.4 $ 226.5 Amounts attributable to FMC stockholders: Continuing operations, net of income taxes $ 297.9 $ 52.0 $ 307.7 $ 259.5 Discontinued operations, net of income taxes ( 2.8 ) ( 21.5 ) ( 15.3 ) ( 33.0 ) Net income (loss) attributable to FMC stockholders $ 295.1 $ 30.5 $ 292.4 $ 226.5 Basic earnings (loss) per common share attributable to FMC stockholders: Continuing operations $ 2.37 $ 0.41 $ 2.45 $ 2.07 Discontinued operations ( 0.02 ) ( 0.17 ) ( 0.12 ) ( 0.26 ) Net income (loss) attributable to FMC stockholders

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) Note 1: Financial Information and Accounting Policies In our opinion, the consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") applicable to interim period financial statements and reflect all adjustments necessary for a fair statement of results of operations for the three and six months ended June 30, 2024 and 2023, cash flows for the six months ended June 30, 2024 and 2023, changes in equity for the three and six months ended June 30, 2024 and 2023, and our financial positions as of June 30, 2024 and December 31, 2023. All such adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes. The results of operations for the three and six months ended June 30, 2024 and 2023 are not necessarily indicative of the results of operations for the full year. The consolidated balance sheet as of June 30, 2024, and the related consolidated statements of income (loss) and consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2024 and 2023, consolidated statements of cash flows for the six months ended June 30, 2024 and 2023, and consolidated statements of changes in equity for the three and six months ended June 30, 2024 and 2023 have been reviewed by our independent registered public accountants. The review is described more fully in their report included herein. The consolidated balance sheet as of December 31, 2023 was audited by our independent registered public accountants. Our accounting policies are set forth in detail in Note 1 to the consolidated financial statements included with our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") for the year ended December 31, 2023 (the "2023 Form 10-K"). Assets Held for Sale The Global Specialty Solutions ("GSS") business met the criteria to be presented as assets held

Notes to Consolidated Financial Statements (unaudited) — (Continued)

Notes to Consolidated Financial Statements (unaudited) — (Continued) On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , to improve the disclosures about a public entity's reportable segments and expenses. The standard requires disclosure of the chief operating decision maker's (the "CODM") title and position and allows for disclosure of multiple measures of segment profit and loss reviewed by the CODM. Companies with multiple reportable segments as well as companies with a single reportable segment are required to adopt the standard and it should be applied retrospectively to all periods presented. The ASU is effective for FMC beginning with the Form 10-K for the year ended December 31, 2024. Early adoption is permitted. Because we operate as a single reportable segment, most of the required information is currently available in our quarterly or annual filings. We expect to update our disclosures to present the required information, which may result in new disclosures as well as updates to the geography of certain disclosures. Recently adopted accounting guidance On December 20, 2021, the Organization for Economic Co-operation and Development (the "OECD") released Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15 percent. The OECD continues to release additional guidance on the two-pillar framework. Pillar Two legislation has been enacted in certain jurisdictions in which the Company operates, which became effective for the Company's financial year beginning January 1, 2024. We have performed an assessment of our potential exposure to Pillar Two income taxes for these jurisdictions, which was not material. We are continuing to evaluate this estimate as well as the potential impact on future periods of the Pillar Two Framework, pending legislative adoption by individual countries. In September 2022, the

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