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$FMC said that it will cut corporate costs through job cuts and reduce discretionary spending and global procurement initiatives that are expected to be mostly complete by year end. The company plans to eliminate 800-850 jobs. By these actions, It expects to achieve annual cost savings of $140-160MM compared to the prior target of $90MM.
$FMC, which completed the acquisition of DuPont Crop Protection business recently, reported a 31% decline in profit in 3Q17. Earnings of $55MM or $0.41 per share was down from $80MM or $0.59 per share a year ago. Revenue grew 3% to $646MM. Adjusting for one-time items, EPS surged 59% to $0.70.
$FMC received approval from the Competition Commission of India (CCI) for the proposed acquisition of a significant portion of DuPont's Crop Protection business. The CCI is the final jurisdiction to grant antitrust clearance needed to satisfy regulatory conditions for closing. $FMC is on track to close its transactions with DuPont on Nov. 1, 2017.
$FMC said it is planning to spin its lithium unit in Argentina to avoid paying big taxes. Over the next couple of years, this business is expected to have a significant tax bill, and the company believes the best way to return the value is through a spin rather than selling it.
On pricing pressure, $FMC sees balanced pricing around the world with exception of North America. The company said Europe, Asia and Latin America are performing well with improved margins, but continues to face pricing pressure in North America.
Chemical manufacturing company $FMC swung to a loss of $124MM, or $0.92 per share in 1Q17, from a profit of $48MM, or $0.36 per share in the year-ago period. Excluding special charges, the company earned $0.43 per share during the quarter. Meanwhile, revenue slid 2% to $596MM.
$DD agreed with $FMC to divest a portion of $DD's Crop Protection business and to buy substantially all of $FMC's Health & Nutrition business.The merger transaction is still expected to generate cost synergies of about $3Bil and growth synergies of $1Bil. The transaction with $FMC is expected to close in 4Q17.
$DD agreed with $FMC to divest a portion of $DD's Crop Protection business and to buy substantially all of $FMC's Health & Nutrition business. The transaction includes consideration to $DD of $1.6Bil to reflect the difference in the value of the assets, including cash of $1.2Bil and working capital of $425MM.
$FMC agreed to buy portion of $DD's Crop Protection business and $DD will buy FMC Health and Nutrition. Closing is expected to occur in 4Q17. $FMC expects this transaction to be immediately accretive to adjusted EPS, and will give updated guidance for 2017 at its earnings call scheduled for May 2, 2017.
$FMC also agreed to buy $DD's global chewing pest insecticide portfolio, its global cereal broadleaf herbicides, and a substantial portion of $DD's global crop protection R&D capabilities. After closing of the acquisition, $FMC Agricultural Solutions will become the fifth largest crop protection chemical company by revenue.
$FMC said it has approx. $10MM of non-repeating costs for 2017 related to various programs which will give immediate benefits. Some of these programs commenced in 4Q16. The company said all of these programs will be completed in 2017, with the benefits starting to accrue in late 2017.