FMC Corp (NYSE:FMC) lowered its full-year guidance today, citing “substantially lower-than-expected volumes due to an abrupt and significant reduction in inventory by channel partners, which only became evident towards the end of May and continued through the remainder of the quarter in North America, Latin America and EMEA.”
The company now expects full year sales to be $5.3 billion (up or down $100 million), down from the prior forecast of $6.15B (up or down $70M). Analysts were looking for $6.1B in full-year revenue.
Full-year EBITDA is seen in the range of $1.3B-1.4B, down from the prior guidance for $1.5B-1.56B in FY EBITDA.
"Our full-year outlook for revenue and adjusted EBITDA has been revised to reflect these channel dynamics and their impact to volumes, as well as the benefit from improved input costs and the significant operating cost mitigation actions we have already implemented,” said Mark Douglas, FMC president and chief executive officer.
For this quarter, the company now expects revenue of $1B-1.03B while it was previously expecting $1.42B-1.48B. The adjusted EBITDA is seen in the range of $185M-190M vs prior $350M-370M.
"Even as we manage through this market contraction and significant inventory reduction by our channel partners, on-the-ground consumption of our products remains strong and at similar levels to last year," Douglas added.
The company is due to report its full Q2 results on August 2.
FMC shares fell 6% in premarket Monday.