FMC Corp. (NYSE:FMC) Q2 2018 Earnings Conference Call - Final Transcript

Aug 02, 2018 • 09:00 am ET


FMC Corp. (NYSE:FMC) Q2 2018 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Second 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 now like to turn the conference over to our host, Mr. Michael Wherley, Director of Investor Relations for FMC Corporation. Mr. Wherley, you may begin.

Michael Wherley

Thank you, and good morning, everyone. Welcome to FMC Corporation's Second Quarter Earnings Call. Joining me today are Pierre Brondeau, Chief Executive Officer and Chairman; and Andrew Sandifer, Executive Vice President, Chief Financial Officer, and Treasurer. Pierre will review FMC's second quarter performance and provide the outlook for 2018 and the third quarter. Andrew will provide an overview of select financial results.

The slide presentation that accompanies our results, along with our earnings release and the 2018 outlook statement are available on our website and the prepared remarks from today's discussion will be made available after the call.

Mark Douglas, President and Chief Operating Officer and Paul Graves, CEO, FMC Lithium, will then join to address questions.

Before we begin, let me remind you that today's discussion will include forward-looking statements that are subject to various risks and uncertainties concerning specific factors, including, but not limited to those factors identified in our release and in our filings with the Securities and Exchange Commission.

Information presented represents our best judgment based on today's information. Actual results may vary based upon these risks and uncertainties.

Today's discussion will focus on adjusted earnings for all income statement and EPS references. A reconciliation and definition of these terms as well as any other non-GAAP financial terms to which we may refer during today's conference call are provided on our website.

With that, I will now turn the call over to Pierre.

Pierre R. Brondeau

Thank you, Michael, and good morning everyone. Q2 was another strong quarter for both businesses at the revenue and earnings level. For Ag Solutions, the demand for our products, revenue synergies, and cost were very much in line with expectation we laid out a quarter ago. The business integration is on schedule and the commercial teams continue to perform very well. The strong global performance through the first half of 2018 combined with a high percentage of orders in hand for the rest of the year in Latin America gives us great confidence for our second half.

Beyond the immediate future, we continue to see very strong growth potential for our acquired portfolio, especially Rynaxypyr and Cyazypyr insect control. On the technology front, the integration of our R&D organization is progressing very well and is confirming the strength of our expanded pipeline. We remain on track to launch our first new active ingredient from the legacy FMC R&D pipeline, the fungicide, Bixafen, in North America later this year.

The Lithium business, which we recently announced, will be named Livent Corporation, continues to perform strongly with demand for differentiated performance products continuing to grow.

Realized prices and delivered volume are in line