FMC Corp. (NYSE:FMC) Q4 2018 Earnings Conference Call Transcript
Feb 12, 2019 • 09:00 am ET
Good morning, and welcome to the Fourth Quarter 2018 Earnings Release Conference Call for FMC Corporation. (Operator Instructions)
I will now turn the conference over to Mr. Michael Wherley, Director of Investor Relations for FMC Corporation. Mr. Wherley, you may begin.
Thank you and good morning everyone. Welcome to FMC Corporation's fourth quarter earnings call. Joining me today are Pierre Brondeau, Chief Executive Officer and Chairman; Mark Douglas, President and Chief Operating Officer; and Andrew Sandifer, Executive Vice President and Chief Financial Officer. Pierre will review FMC's fourth quarter performance and provide the outlook for 2019 and the first quarter. Andrew will provide an overview of select financial results. All three will then address your questions.
The slide presentation that accompanies our results, along with our earnings release and the 2019 outlook statement, are available on our website, and the prepared remarks from today's discussion will be made available after the call.
Finally, let me remind you that today's presentation 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 press 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 and the supporting materials will include references to adjusted EPS, adjusted EBITDA, adjusted cash from operations and free cash flow, all of which are non-GAAP financial measures. Please note that earnings shall mean adjusted earnings and EBITDA shall mean adjusted EBITDA for all income state references.
A reconciliation and definition of these terms as well as 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.
Thank you, Michael. And good morning everyone. 2018 was a critical and very successful year for FMC. In Ag Solutions we delivered tremendous performance in both Q4 and the full year that significantly outpaced our peers and the broader Ag markets.
Our sales team aggressively pursued revenue synergies made possible by the limited customer overlap and the strength of a broader product portfolio. They delivered 11% pro forma sales growth for the full year posting gains in all geographies. Our entire organization executed well against our growth goal.
We achieved this performance in 2018 while taking great strides towards integrating the largest acquisition in FMC story separating lithium business, which included the successful IPO and advancing the implementation of the SAP S/4HANA platform. We also reduced debt of $500 million and completed a $200 million share repurchase program.
Turning to slide 3. FMC reported over $1.2 billion is in fourth quarter revenue including lithium we reflects the year-over-year increase of 24% on the reported basis and 17% on a pro forma basis. This increase was driven by strong commercial execution that enabled broad-based growth in every region in Ag Solutions along with 6% sales growth in