FMC Corporation: Growing Strong Results

10/23/20

By Michael A. Gayed, CFA, SeekingAlpha

FMC Corporation (NYSE:FMC) is a global agricultural sciences company providing crop protection, plant health, and professional pest and turf management products to growers. Over half of its revenue comes from products used to kill insects (insecticides), with another quarter from products used to prevent and kill fungus (fungicides). Large crops served included fruit & vegetable (F&V), soybeans, rice, and sugar, as shown below.

FMC sells these products across the globe, which protects from shocks in any one region. In the second quarter, revenue from Asia contributed 27% to total revenue and was up 8% (excluding foreign currency impacts), led by herbicide sales in India, insect control growth in Pakistan, and an overall market recovery with better weather in Australia. North American sales also contributed 27% of revenue, though down 6% year over year, with a strong quarter of herbicide growth in Canada and robust contributions from fungicides and herbicides.

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