FMC - Earnings call transcript Q3 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Third Quarter 2018 Earnings Release Conference Call for FMC Corporation. Phone lines will be placed on listen-only mode throughout the conference. After the speakers' presentation, there will be a question-and-answer period. I'd now like to turn the conference over to Mr. Michael Wherley, Director of Investor Relations for FMC Corporation.

begin. may You

Michael Wherley

good quarter and Welcome FMC to Thank call. morning, third earnings Corporation's you, everyone.

that Joining Pierre Officer; quarter. the your select today our financial Officer. three and questions. discussion Douglas, Executive me on available results. provide with the The are an today's President earnings Andrew results, Pierre accompanies President Chairman; Officer Vice available address for remarks be third and will and prepared Mark will and our the review XXXX presentation provide Chief quarter of Chief along after outlook fourth Operating overview outlook and and the FMC's Sandifer, Brondeau, Andrew Financial Chief performance will slide Executive our and All and the made website, will from XXXX then call. are release statement,

remind non-GAAP now call adjusted today's and that, turn terms discussion during uncertainties. With other Pierre. upon on EPS based risks to will limited discussion these and risks to all refer will begin, earnings that in not but focus Exchange which concerning we results judgment provided include over may Before with presented our uncertainties based conference income A Actual and financial in the Today's identified Commission. our subject best and as you to our definition may as terms I me well on are reconciliation today's filings on statements represents Securities various for we release the our forward-looking references. to, information. and statement are website. factors let vary and those including, that factors, Information call of today's will specific these

Pierre R. Brondeau

was businesses points boost performed continued sales strong very seasonally QX Ag the to quarter weak Michael, higher XXX business growth, in good from synergy The Solutions an QX, a level. at was also demand for which quarter. very and than It for our both and a was headwind well pro Thank despite basis to estimated everyone. X% was on results about executing in commitments. forecast, Revenue X% X% revenue and forma earnings our strong Brazil the you, driving currencies. another foreign morning, quarter in

reminder, successfully have DuPont XXXX estimates from FX what impact to and country precise not but saw we businesses. our a As base transferred do we from delayed FMC from exact in year-over-year acquisition. or legacy sites to pricing, QX, in data we calculate DuPont FX, In our we volume, the on

QX did site the in any remain There of in our for in earnings on result line will they shift the full XXXX. discussed second formulation transfer, sale calls, occur that India, in missed revenue last expectation, will a a in transfers one small of with result these half As not into that our but delayed year. more was

XXXX. We S/XHANA On schedule will is corporate the rollout with end expect implemented complete no impact rollout SAP starting of function. business The of system finance new be on systematic our integration begun have and the on the business by results. we

legacy on are of Lucento, from fungicide will This pipeline we our Bixafen. XXXX. first in on front, track technology branded launch new is active quarter ingredient active the the FMC On the to and be first America ingredient based North in R&D the

of discontinued shareholders year, to FMC shareholders. March. we will segment fourth in the we March is we the to reported shares the but to night, Last tax-free separation Our of to report FMC of and that completed begin of in assuming remaining on Livent month in on separation successfully the of full of and our next intent the QX, Lithium remain quarter last of year, a as IPO performed a spin in dividend XX% expected be this quarter XX% form results FMC completed the complete schedule will first when segment spin to The Livent's Lithium operations Corporation the strongly will announced approximately reporting FMC X, spin-off be XXXX. is business.

reduced million Andrew of year-end. of $XXX call back year, rationale stocks significantly and this through having million to on announcement paid the debt expand topic down have will describe on an We for nearly October. $XXX later FMC the this debt by buy

strategic is being Our and plan implemented. five-year complete

it We Investor Day X. on at you our will with share December

make S/XHANA to major completion SAP delivering accomplish We are the to that proud DuPont results. initiatives quarterly the our set integration, of including the been we Livent the all at have beginning out implementation that we significant this and while on strong year, our able progress of IPO,

period quarter Turning above the midpoint which performance year costs. a slide of $X.XX to third now Ag Solutions, to reported higher-than-expected was QX billion, corporate higher XX% over XXXX. cost the third EPS in just which plus corporate strong the address section. $X.XX was revenue FMC $X.XX Andrew was from Lithium offset quarter rate, $X our the the guidance will headwind $X.XX and due beat, by $X.XX of versus same results. ago. somewhat $X.XX beat was cost a guidance the tax Adjusted up from in higher from of The quarter, XX% X and and than his a lower other and our

in acquired a reported the slide X% herbicides. a of our and growth our on insecticide Ag X selective and XX% This increased in XX% growth and basis. quarter by Revenue pro-forma driven $XXX basis was year-over-year X% increased to million portfolio Moving of Solutions. on

third a top-line EMEA. Asia America strong with performance and America, North We continue cross-selling our forma than its delivered pro in lower growth portfolio. offset delivered more and capitalize global impressive which On to basis, on in quarter opportunities combined a we sales force both Latin sale full another in and

with XX% million Segment quarter segment line year-ago of $XX the in expectations. XX%, Third the was versus was which quarter was increased EBITDA was midpoint from our EBITDA million, earnings and $XXX above the guidance. margin

many lowest QX discussed, is reasons. for previously As margin quarter the

is yet margin will highest of First, region. it percentage shift revenue the geographic QX to SAR spend product each mix These a lower elements future. mix contribution second, higher to and a legacy expected products; be in were and shift is our our from third, lowest FMC seen flat; quarter,

large insect growth to absolute expansion overall the diamide season our QX. tree the and growth EMEA, Of of contracted creates annual decline In in or revenue grew in X. the the Europe XX% seasonally EMEA quarter, was North our revenue growth a dry only herbicide region. mixed a portfolio. increase In relatively all key North Cyazypyr revenue Revenue QX in forma We in was to it in in was control. dropped a combined with X%. of America, decrease was and disproportionate application portfolio. dollar light due Latin late sales now and but in percentage from weather. across contracted growth continued the XX%. driver therefore, the on saw are XX% North America increased business volume because strong And small the nuts, herbicide in regions. on seed low on Rynaxypyr swing. about The slide season revenue America pro basis California lower X% of which of part Turning was note represents and America Asia rate XX%

not change change is back and on move result into Holland. making saw timing QX distribution addition, we a move lost orders a of in will This sales. the are we in In any and Belgium

Brazil, due strong in in in was X% expecting to fourth basis Latin demand are on strong due strong a quarter XX% the We access. market of growth our a to acquired performance FX America, forma products consequently double-digit headwind. on business primarily which strength expanded In the our EMEA. pro grew despite our This grew

advantage We have broadly of to increased South crops more in taken and existing to exposure distributors. the

as and new citrus. on crops an such our cross-selling coffee are with We emphasis portfolio

we started addition, insecticides herbicides expect XX% that this sales driving season, will coming QX. stronger increase in In which cotton and portfolio acreage over

increases price declined We Asia, also Brazil. board in In X%. successfully revenue across the implemented significant

excluding in of insecticide sales rice vegetables headwinds Korea. and of We and acquired proactive our However, and India foreign India, despite in rice currency. fruit and had from and we our in revenue portfolio business, Japan strong grew significant in a X% soybean restructuring

Moving now year million, XX% year ago. a Lithium EBITDA compared of segment QX strong slide revenue and up delivered quarter XX% X. to higher than a $XX with Lithium on to third last

our its is we income include fourth FMC reminder, Corporation, deducted segment reporting statement, quarterly is but will Livent's we we in of this our you results fourth non-controlling because quarter for Livent results, earnings owns issue separately. Lithium of will continue a quarter and When our line the our FMC in limit of as interest Livent As comments will guidance. in reflected XX% the XX% to still see earnings approximately

guidance. EPS the to IPO X, highlights impact our slide Turning of Livent's which the on

exactly $X.XX, midpoint Excluding of the would a guidance where ago. was still at adjustment quarter Livent, our it the be for

minority which must are cost However, is the post those to deduction as Incorporating earnings $X.XX XXXX as full for approximately share IPO, stand-alone Livent, a headwind, which $X.XX versus $X.XX the at account midpoint, per increase headwind. XX% and for interest well share between Livent a of for expect we represents XXXX now of EPS. we which or be full-year XXX% adjusted factors, $X.XX per $X.XX an the

X for quarter. (sic) [slide slide year the and which summarizes outlook our X], fourth for Turning the to full

range to Ag will the XXXX billion. revenue billion Solution expect $X.X $X.XX in We be of

midpoint. basis, at equates forma this the to a XX% pro the nearly On year-over-year increase

a of raise $X.XXX in billion Ag $X million of expect midpoint be to at also is to $X.XXX relative We Solutions prior EBITDA which range the guidance. billion, will the

which global be to market market for two in improved North European expect basis, we what We the low-single-digit a Asia change to up is in which be are to from be U.S. slightly improved we conservative. our up crop due primarily still in expect that America, we FX-driven expectation in low-single-digit, will more while Latin will forecast has have in say crop with to herbicide; Our recent expect overall chemical be a pronounced we XXXX. forecast the outlooks and protection more low-single-digit market dollar flat The to due America, the On regional up expect up slightly protection now price high-single-digit strength increases. August.

basis low-single-digit market largest XXXX. many the a down one world up of currencies. We expect U.S. it is of be local considerably growing factor. market the and ahead is in Increased low-single-digit in parts of to FMC in on the dollar access

super in with improved South; new of distributor Eastern new direct full includes utilization access distribution in third, and market Brazil, Europe the in Europe France and model enhanced India, and this countries. access particularly in our more in First, access in resulting full crop Benelux growth coverage; and in second, and

will is driver growth launched which the local we XX point products, formulations by needs. In growth overall formulated X% Another launch to expect rate. the respond customer developed regions of to new contribute XXXX, of we the

the a present be revenue of Ag growth for XX% This for XXXX. fourth $XXX revenue million be to million half will Solution $XXX quarter quarter in midpoint quarter range recent expected headwind the rate includes billion This to an of Segment of For is the to implies is estimated the tariffs. outlook EBITDA to FMC, $X billion. $X.XXX $X the from range second of growth the X% to million for million in pro-forma trade at in $X.XXX QX. and forecast the pro-forma forecasted

of forecast into already previous due in are the We our to higher years. country level is booked largely that in revenue expected orders. than a in heading confident much visibility XX% QX This as Brazil, in period with

we pricing Brazil will in with hedges. confident FX manage also are headwind the We and

to that Livent last night. am going just repeat to the guidance Moving I issued over Livent.

Andrew. $X million, range in stand-alone to and million $XXX $XXX between $X.XX. of the increase midpoint, X% We and in the will $XXX costs. now million $X of adjusted Livent $XXX at is $X.XX of to about million stand-alone over million year-over-year fourth between revenue and the representing decreased Livent quarter forecast for $X turn earnings to of range $XXX a call increase a full-year a revenue million million million by due of EBITDA expect million EBITDA full-year million, the to be to its midpoint expect the We to segment $XX of range per for at now at million share midpoint. to XX% the of costs. guidance I be to account year-over-year guidance $XXX QX the $XX in to is

Andrew David Sandifer

specific the our update provide Thanks, Livent expense last above of then the income IPO. sheet expense with by exchange Pierre. move This was increase also on driven pace the Corporate I'll items a to the cash movements. I'll few primarily start this and statement inter-company at our proceeds of quarterly million use an flow. from impacts by $XX.X call. balance $X.X foreign morning on expense was guidance million, implied earnings fund in

which environment, system on IT inter-company dual a address currency it in makes operating more currently are We movements. to imbalances fund challenging

as system cause million While million in challenges some a non-recurring, in are quarter in corporate the our per of exchange Ag DuPont quarter. in to the We our plus was the This on was large volatility to order the variability to the X% will late expenses a we top-line likely or $X go $X headwind XXXX. away estimate TSA the third impact segment. portion exit minus Solutions X% for of quarter foreign

estimate on of earnings impact Brazil, activities. offset we price FX XXX% by in we that through hedging increases complemented Importantly, in the our QX of significant

of and For forecast to the across virtually our to the third a tax year-to-date had tax effective in mix XX%, with provision a range the earnings quarter. modest guidance the in XX quarter for impact Lithium our tailwind adjusted this taxes the FX midpoint the We for XX% of a XX.X% rate and with reduction updated year full brings jurisdictions. updated segment, basis for to on points revenue various no the adjusted lowered The our range, effective driven earnings by of guidance. rate at line of for

XX% adjusted nine months slide on the cash nearly X, operations FMC generated September XX, million balance to the EBITDA. flow to period, higher Moving of cash by ended sheet $XXX XXXX, the prior-year in from and driven on up compared

from capital the build We also benefit working expected. than to DuPont lower acquisition continue initially for

remainder down This of Using million received Livent. about the beginning guidance Looking raising million completed are FMC QX, the the $XXX XX is We a of $X.XX nearly of million from billion debt, early full to million. the next debt-to-EBITDA, October the quarter adjusted our This our to we debt, shares. XX, debt. pay repurchasing profile, sale consistent $XXX strong line further $XXX of net shares IPO $XXX EBITDA Livent range year reduction credit to down and million Livent on will now and targeted gross the October $XXX loan in leverage we impending consistent $XXX term from nearly our term this of commitment of X.X solid Lithium, With excluding we used of ending cash to down with other paid operations year. investment-grade cumulative loss times million below those from the On to FMC the IPO hand from $XXX in of loan reduce the proceeds million with and Livent excess cash we proceeds to cash with flows year, million. of use our year. begin for debt proceeds with to in increases

substantial existing launching We repurchase $XXX generating from initial this end marks open transformation, acquisitions are market under shares forward. to a our an point free purchase as FMC inflection million $XXX we via by flow FMC of share purchases program the going share This million year de-leveraging of past and repurchase authorization. move to cash debt-funded

we will call are generation on With X. You to topics the that, key December can I'll cover back upcoming deployment Investor Day and at Pierre. turn cash its the expect our

Pierre R. Brondeau

could I not where we pleased today. Andrew. be you, with Thank more are

FMC period of in the for results preparing short-term. delivering while are a We growth, long exceptional

delivering on margin XX% XX%. every in We Ag front, rate revenue are XXXX the growth strong a market, above a pro to EBITDA the for forma with global basis, close on much business

successfully We and of are synergies. completed business market cost and realizing integrating sales DuPont We flawlessly Livent early the in challenging condition. IPO the

on is track. implementation SAP Our

is flow cash Our strengthening.

a quickly We million are buyback. our $XXX paying and shareholders down debt to returning stock through

technology. strength portfolio core to More ability competencies, of to a develop long-term our plan and short- our strategic firmly our which importantly, we place leverages current in have the unique

discuss I the said front. I December is back X the every our of Wherley. on Michael wait future turn cannot of to company now delivering on all with I will the you. team As before, to call

Michael Wherley

Pierre. you, Thank

the plan. keep Q&A. As begin just its potential on we'll other have this session Livent had has might to focused now Livent can to call, than on own the business, questions separation our Q&A you Ag you answer Operator, conference any

Operator

go Great. comes LLC of (USA) the your question S. first Credit - Suisse you. Parkinson Securities Thank with Parkinson line Credit And ahead. Suisse. Christopher from Christopher Please

DuPont? portfolio don't own R&D acquiring process late-stage your from long-term found how think the ever-evolving on that, new mid- maybe your your just a Given given molecules. perceive independence? Analyst outlooks if sure we should you comment want Day, we front-run to but newly geographic call should product thought how to platform your guys on the yourselves And about it acquired want FMC and basis, I'm a on regarding in quick of to strategy regarding old, the you just

that comment on be you. greatly appreciated. would So, just any Thank

Pierre R. Brondeau

guess, from we are question. into quite business FMC at with really do didn't which time, developed would we technology have, Marketing deep the and new lot Chief But is depth towards of capability unique. before, which have the We you ingredients, technology intend What strong actions Technology require as our being the the would formulations of appreciate active which capability. have DuPont. of I discussing Investor a do I now ability is a Officer value a DuPont can new We'll coming DuPont we very technology of Chris. have our and molecules, by active which DuPont, to going ingredients those Officer Chief new is bringing Thanks, in bring organization mode combination DuPont and Day. stage. say discovery development to a enhancing developed FMC acquired, do

the but world, field capabilities testing, development of fast testing all, and of for have gathering, of each us Third technology in terms formulation data complementary local of the the region in also allowing FMC and development DuPont requirements. of

blend be quick a (USA) Suisse in technology the LLC S. of and of driver of short-term, will Christopher will So - And just we future. very key follow-up. all growth Securities technology Parkinson Credit a mid-term, but FMC describe these, long-term

us any versus maintenance sense Just given the greater corporate generation color my history, just give is the low how given be let's refined flow your, understanding CapEx the better your thinking would just cash cost for Asian well which requirements? any better about exposure, especially structure geographically Can on role balanced appreciated. your eventual as to relatively TSA, you. with you future you're Thank terms. say, portfolio broad there as Just payable

Pierre R. Brondeau

Andrew Day. Yes, want cash on we make color very said as and to in Chris. topic his deployment a Broad critical comment, Investor

in than see reason will XXXX. we'll the the to years because You for cost XXXX company bit will less Then The in XXXX. be real cost. little increase the you in all real XXXX a significant generated and be the start jump is which XXXX to the following by step-up some cash will implementation way and have still into SAP have integration a a

that, cash the look you which the structural cash we'll spend, the capital saving detail the at we're fully we are make shareholders. to take if will before to the we with to want S/XHANA for look have get going change and the we fund where way to R&D growth, cash sure including because be to implementation, a look going If if generating, we to at at you we place returning place R&D will you're

stock how what great Credit and pretty be the significant regular do shareholders you That's size very with Securities will the number, next for LLC through to cash S. which that we'll of you. we buyback. we'll return, significant is dividends through Christopher this discussing part, deciding most we repetitive Thank and cash, And buyback. - to will (USA) for do stock Parkinson which payment color. of a Suisse to years, company are we of our So the through intend see in part you non-allocated unallocated dividend have few

Operator

Don moment. go Carson we Susquehanna the with Next to One Financial. of will line

Michael Wherley

if he not Please is move question the next available. to

Operator

moment, One please.

Michael Wherley

question. to the please Operator, move next

Operator

One One moment. My Yes. is moment. computer froze.

Donald David Carson

hear Hello. Can me? you

Pierre R. Brondeau

We can hear you.

Donald David Carson

thanks. Oh,

Sorry about that. was America. kind round-tripped on South reais. on you – There Question Yeah. a the of lot

local hence, the back you you be pricing? reais them you affect You How increased ability should X.XX. to hang And and, BRL fourth as on if currency that at expand went from peak, did raised X.XX margins able pricing to BRL X.XX BRL X.XX to your to quarter? raise into to get BRL those that

Pierre R. Brondeau

situation currency. pricing Don. face regular Yes, you a you your connect always That's when to

you're I think it's making. an point important

by currency As goes increasing we sorry, said before, on to the when the always a of price, as lag. become and points. ahead When the currency we the are down – when way behind the the We're same happening, we strengthen, hold game we then a can we have few the long is we because as the thing price percentage previous currency. up then

move So, about made that the that to needless older it currency but on quite way while the the X ability Brazil, you BRL to is strong in as strengthen, we're And us fast able job you long up. currency as zero back to in you on currency to it to try to going impact the to is, bring your third price as will pretty was to up to hold all take the feeling price fact currency say the now quarter have the EBITDA our have can, goes. to as closer

Donald David Carson

can And about... talk you

Pierre R. Brondeau

But face at currency currency positive lag on the beginning a and weakening strengthening. the the is negative when you'll

Donald David Carson

And about receivables of your are position How collection's percentage by can been you as and in where a standards going sales? Brazil? historical sales talk

Mark A. Douglas

Receivables good in Mark. It's are shape Brazil. very and especially Don. Yeah, in

we that of business know really getting and in of the a our after over lot effort time the shape years you think couple back I XXXX. spent of quality last

so receivable go. season confident now, us, are, But levels about more dues things are so, we past importantly they've So last our been We're and four heading. about where at the for in we'll our we for down level where have are obviously to Collections lowest very dues strong been are. three the feel very where Past good. how about we're very the years. see

Operator

goes ahead. And go the Citi. Daniel line question you. next of from our Jester to Thank Please

Daniel Jester

morning, Good Hi. Yeah. everyone.

chain those remarks tariffs prepared China. is have said magnitude sustained from couple there be? from mitigate in own tariffs might you about, that could if some that And supply just of cents your your anything do of headwinds color to those in the costs? in on of think you what that are a you could of order I Can comment you So just XXXX,

Pierre R. Brondeau

to would the be out sales think around a it's believe give impact, magnitude, around XX%, stay our million an EBITDA. in negative $XX million of on at XXXX, $XX you if any impact order currency If I tariffs would a $XX impact going exception. to the if to be to EBITDA. to if tariffs million we we it project the successful range, on move we getting not XX% That be are

know, we to are you As in doing on I be of fighting some for product. but exemption two you we the cannot to I gave will be that, critical successful the raw of impact. anticipate materials the numbers would max how

Daniel Jester

for Thank America. helpful. view on market And you higher your very commented growth Okay. you. That's North

you I Can think it North do the any And you the to market anticipated that looks next down where some going change? to just sense into and Is and might thought between now go that shifts driving it's bit America the could see year dive as give soybeans? corn a into to like Thank little you. acreage be broad year something us that? this can think up. specific be of in you previously you that's there with we

Mark A. Douglas

we It's was America stronger Yeah, thought. North Mark. than Dan.

We especially do diamide California. with the in well to continued very acquisition,

niche on crops it I season. think the We well we in saw the the end slides. noted one of other as towards that of

movement get slow a as percentages. so in America, course, need bit time said of much don't significant a you prepared Now, remarks, North Pierre to his of in it's

going We've with our herbicides two products saw launched based selective business also we quarter. well and this good think key some through year, very I the they've done new third on molecules.

So, the U.S., go the carefully portfolio watching think growers with for to very Frankly, we're where projections better soy tell it's given insecticide this. where think of Obviously, we we as We're than it are. roll season into as watching the early closely. thought. herbicide will very and and doing too next corn I the

by greater planting do an have that's you I well. soy going Obviously, a know we that U.S. know much to we market exposure now in more corn. in in which than Brazil. are their offset very we that do the think is Brazil exposure of right season And

a to in for them X% roughly acreage expect We increase have about soy.

of U.S. figure said, We're So, it's watch that movements see to for and a really. But Brazil. one of out. been and, a now, the as sure advantage are take any to that right bit in our supply too us, I much particular, well-positioned in in chains early making

Pierre R. Brondeau

And repeat and America, we around North comment Europe one like additional to that.

low so quarter forget movement is a when that change a third season, change. that So, actually not it don't is of in dollars creates significant percentage, big

bit of the a Europe at that is XX% a U.S. only fact we're the occurring there So is time sales. of

as might big as not percentage So, There the it. indicate are no...

Daniel Jester

you. Thank

Operator

the from of And Byrne America. next question Steve will from come Bank

Stephen Byrne

some for you. products proteins, some below-ground treatment? there's your control would as Thank platform you. been Herculex understand insects insecticide I seed rootworm an wanted Yes. developed the a resistance recently of include and to to that opportunity or just reports corn know whether Does not that created

Mark A. Douglas

seed the Yeah, side, of rootworm. Steve. in-furrow corn the application especially insecticides, very but We're for in treatment in we're not much

advantage in-furrow technologies foam-applied increased branded but we're introducing sustainable seen product we're we yes, with infestation. into which new also for But, of that well-prepared And a LFR, stands instances marketplace, in is and take have it only We are talk our as on our the next Day. with instances seeing we that that which liquid our application, today. fertilizer-ready more you're go Investor the portfolio right, much nature. are through more of we'll to We're not that as season, Capture with well-positioned about

Stephen Byrne

selective to professional has to benefit requirements to on not herbicide lot about revision your a certification the they're additional the think net able achieve. be upset EPA-labeled recent Is that of the And that dicamba them applicators going many platform? a of

Mark A. Douglas

we can if franchise, we herbicides participate directly, there with market-leading that Well, but certainly market with have dicamba, in yeah. are if pre-emergent our to brand. continue don't Authority opportunity. grow dicamba Obviously, for we we I in position mean, issues soy that do obviously, a will the take

as do well, those market the companies technologies new also a said lot promoting use of as we're are that are of pre-emergent I I the leader. the However, to the herbicides say, have promoting of of which

that. we take advantage So of will

Stephen Byrne

Okay. you. Thank

Operator

Thank you.

KeyBanc. from will next Mike Our Sison, question come

Curt A. Siegmeyer

Hey. in DuPont terms is terms about, from that characterize for seen those in curious just that and from Siegmeyer guys. would largely contribution Good should us pipeline was potential you've in in morning, of XXXX? This cross-selling benefits you've we inning to of in of Curt that the of how Mike. distribution think what benefits the some benefits I talked terms growth in of you and

Pierre R. Brondeau

this business about are in range, – maybe high-teens the I and growing about due very is which and year, if portfolio think X% DuPont you today be growing the overall in the low-XX% that growing to will fast. we think will the company

So, we're time growing us, of not synergies be spending how we're of more versus this is side the despite is sustainable is believe lot do understand to is much for We short-term synergy. to what important what a going portfolio (XX:XX-XX:XX) and try that, very studying to

Operator

And main one We moment. feed. the have (XX:XX-XX:XX) lost may

Michael Wherley

line went The dead.

Pierre R. Brondeau

(XX:XX)

Michael Wherley

Can you hear us?

Operator

are. Oh, you there now. hear Yes, we can you

Curt A. Siegmeyer

hear Can guys. Hey, me? you

Pierre R. Brondeau

Yes.

Curt A. Siegmeyer

that. part, but little of Okay. I'll... last I Thanks the a lost for bit

Pierre R. Brondeau

Okay.

the What you bottom give discussing me we'll okay? be line, Let (XX:XX-XX:XX)

Operator

to moment one unable Mr. and Ladies we And Wherley? please. hear. are wait gentlemen, please

begin. may You

Michael Wherley

hear us? you Can

Operator

Yes.

Michael Wherley

that last Okay. that. about resume Can just with question from Thank you. Sorry KeyBanc? we

(XX:XX- XX:XX) interruption We have an

Operator

And you may begin. (XX:XX-XX:XX)

Operator

may... you And

Michael Wherley

operator? hear us, you Can

Operator

hear can now. I Yes. you

Michael Wherley

Okay.

believe Let's and it's I start in question. the next the Connelly at back go with Mark Q&A Stephens.

Joan Tong

is Connelly. Hi. This actually Mark for Tong you? How are Joan

market? there for you maybe just growth the which out have, penetrated key seasonality. called America products best North Cyazypyr the weak results Can these deeply regions despite the drivers opportunity us and tell are perhaps guys additional these geographic how in what offer talk about are Hello? one the You or strong product Rynaxypyr potential, of

Operator

One moment, please. (XX:XX-XX:XX)

Operator

hear I you.

Michael Wherley

us? you Can hear

Operator

hear can We now. you

Michael Wherley

to going goes call. try answer ahead. it and have Mark, if this just the question. to go end But again let's we're blank then Well,

Mark A. Douglas

Thanks. Sure.

that growth So, products Asia. XX% over saying was from yeah, the are as I diamide the of coming of

launched later their So in to we good see Asia, crops. product, versus on continuing Latin the December of America, these very products But around was more other as growth we which growth and makes to details them in performance selected in be see both see Cyazypyr it that Europe, we terms Brazil we what digging competitive particular, in Xrd, we'll When America. parts having Investor is into niche grow, a of do on chemistries. North opportunities Day especially in why and get special

going the Xrd. address the at on Investor the than we'll details all certainly rather today, So, that December through Day

Joan Tong

just And then one Okay. follow-up. Thank you.

impact the tariffs of for the on color thanks earlier. Chinese the So,

follow-up Just as China one maybe well. on

we seeing facing are Chinese cost. are chemical compliance producers So rising environmental

of how you maybe material a longer-term, wondering forward? also are be evolution raw world? your and are like, part Thank you you significant Just change of much And the of shift about being a you perhaps towards in of going the sourced maybe source much. how thinking China? other India more Would that how your business so

Pierre R. Brondeau

is of Regarding where top China, mean, issue the not size I from country XX of this in itself, and the one business China the for world, is us. country a the but

from challenges One would active China. well I FMC for of the for and most the as chemical is say the material as of Ag comes have supply other company of we raw ingredients

more facing. the is because or prevent the is material. of of are the we is always other is the And there two China, reason, issues constraint there and higher risk supply one which raw shutdowns, the active environmental on One would up. ingredients supply going cost from of cost; the So is,

is something We've can dealing the one second is issue much the So well that. there we're with not because happen, if watching always been do. we quite

are products. qualified our for of with well-structured most suppliers multiple We

manage we'll to flexibility expect been to price paying So future. to customers of in we the the which foreseeable far able able without we something address. something The to supply have have chain, is manage have to but and use shorter so is be the

to material impact cost raw is very Now significant. XXXX of not the in I say have

on the going work, into you're increase sell and inventory, the which then into cost product. of the because cost you accounting products pushed are of impacted is way the the Just when

we through in very strategy. something So but issue we're pricing very currently certainly to to pricing have have not XXXX are for well-thought to be a we're watch raw XXXX, in to expecting and, define material significant to going a which, going

Operator

you. Thank

next come Securities. will Global from question Our ahead. Harrison, go Please Mike Seaport

Michael Joseph Harrison

Hi. Good morning.

Michael Wherley

Hi, Mike.

Pierre R. Brondeau

Good morning, Mike.

Michael Joseph Harrison

through to more And the talk impact. I wondering in a difficulties some on your little would realize a contribution effective the the shorter-term hedges, they around I'm from QX. season, if if less potential an manage become separating there FX or go to of forward call. maybe more they wondering And hedges get the particular sort the detail ability through you unusual little expensive, Livent was in didn't about just You in get that lead was technical we bit they could as somehow.

Pierre R. Brondeau

the I'm going to process done. to what hedging ask address we've and Andrew

on things through was biggest our was was the within driver. of the impact accomplished. put to context. That's the most let's Now, done which the done business of pricing. currencies work of limit work was That where Most

interesting protect us very we a maybe? was Andrew, strategy further. complementary hedging had Now, to

Andrew David Sandifer

benefit our orders thinking Thanks, Pierre. with specifically, of I in We think, say extraordinary hedging did there would was some Mike, hedging in supplement being... an Yeah. the approach layers of Brazil additional from hedging about not quarter. advance (XX:XX-XX:XX) I

Operator

Corporation call. participation. quarter release you does the XXXX your That FMC third earnings Thank conclude for

now may You disconnect.

Michael Wherley	FMC Corp.
Pierre R. Brondeau	FMC Corp.
Andrew David Sandifer	FMC Corp.
Mark A. Douglas	FMC Corp.
Christopher S. Parkinson	Credit Suisse Securities (NYSE:USA) LLC
Donald David Carson	Susquehanna Financial Group LLLP
Daniel Jester	Citigroup Global Markets, Inc.
Stephen Byrne	Bank of America Merrill Lynch
Curt A. Siegmeyer	KeyBanc Capital Markets, Inc.
Joan Tong	Stephens, Inc.
Michael Joseph Harrison	Seaport Global Securities LLC

FMC (FMC) 6 Nov 182018 Q3 Earnings call transcript