FMC Corporation cuts Q4 revenue view to about $1.15B from $1.23B-$1.29B

Q4 consensus $1.26B. FMC Corporation announced that the company is reducing its fourth quarter 2020 outlook. The company is proceeding through its quarterly close, and based on preliminary results expects fourth quarter revenue of approximately $1.15 billion as compared with prior guidance of $1.23 to $1.29 billion, and fourth quarter adjusted EBITDA in the range of $285 to $295 million as compared with prior guidance of $335 to $355 million. Full-year free cash flow guidance of $475 to $525 million in 2020 remains unchanged. The company expects 2021 outlook at or somewhat above long-range plan targets of 5 to 7 percent revenue growth and 7 to 9 percent adjusted EBITDA growth. In North America, sales were impacted due to supply chain disruptions, including COVID-related factors associated with logistics and a tolling partner. These events occurred during the traditionally busy month of December, resulting in some products not being delivered to customers by quarter end. The company expects a large proportion of those sales will be recognized in first quarter 2021. In Brazil, sales were lower than forecasted due to severe drought that persisted throughout the fourth quarter, resulting in lower demand. The company expects these conditions to continue through first quarter 2021. In Argentina, substantial product inventory located in bonded warehouses was not released by customs officials in a timely manner. This inventory is expected to be released, and sales completed, in first quarter 2021. "Despite the global pandemic and these near-term operational challenges, we delivered a solid 2020 and remain highly confident in our 2021 outlook and our ability to deliver FMC's long-range growth plan targets," said Mark Douglas, FMC president and CEO.