Shares of
FMC
were sinking after the crop-protection company issued a revenue warning and launched a cost structure review ahead of earnings.
FMC (ticker: FMC) fell 17% to $55.72 and was on track for its lowest close since March 30, 2017, when it closed at $53.30, according to Dow Jones Market Data. The stock also was the worst performer in the
S&P 500.
Shares this year have dropped 55%, putting them on pace for their worst year on record based on available data back to 1972.
The company—which will post third-quarter earnings on Oct. 30 after the stock market closes—said it now expects third-quarter revenue of $982 million, adjusted earnings before interest, tax, depreciation, and amortization (Ebitda) of $175 million and adjusted earnings of 44 cents a share. The prior forecast called for a revenue range of $1.19 billion to $1.27 billion, adjusted Ebitda between $240 million and $290 million and adjusted EPS between 90 cents and $1.32 a share.
The guidance slash “is mainly driven by substantially lower sales volumes in Latin America, particularly destocking in Brazil and to a lesser degree drought in Argentina,” according to a press release.
The company also lowered guidance for fourth quarter and the full year.
“With destocking conditions not expected to improve in the near-term, we have initiated an immediate restructuring process for our operations in Brazil and have launched a broader, more comprehensive process to review and adjust our total Company cost structure,” President and CEO Mark Douglas said in the release. “We will discuss these actions and our 2024 outlook at our Investor Day on November 16th.”
Write to Emily Dattilo at [email protected]
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