FMC Corporation (FMC) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $15.90 million, or $ 0.12 a share in the quarter, against a net loss of $204.10 million, or $1.53 a share in the last year period. On the other hand, adjusted net income from continuing operations for the quarter stood at $118.80 million, or $0.88 a share compared with $103.80 million or $0.77 a share, a year ago.
Revenue during the quarter dropped 3.75 percent to $865.60 million from $899.30 million in the previous year period. Gross margin for the quarter expanded 580 basis points over the previous year period to 39 percent. Operating margin for the quarter period stood at positive 8.68 percent as compared to a negative 6.13 percent for the previous year period.
Operating income for the quarter was $75.10 million, compared with an operating loss of $55.10 million in the previous year period.
Pierre Brondeau, FMC president, chief executive officer and chairman said: "FMC delivered another solid quarter, to cap a year of strong quarterly performances. In Ag Solutions, we focused on maintaining price and terms rather than volume, and we rationalized low-margin products to improve the foundations of that business. Despite headwinds from Omega 3, Health and Nutrition delivered another year of strong margins and cash flow. Lithium tripled earnings by executing on its growth strategy and taking advantage of favorable market conditions. The actions we have taken throughout 2016 position FMC to deliver significant earnings growth in 2017."
For fiscal year 2017, FMC Corporation expects diluted earnings per share to be in the range of $3.20 to $3.60 on adjusted basis.
Operating cash flow turns positive
FMC Corporation has generated cash of $497.80 million from operating activities during the year as against cash outgo of $357.70 million in the last year.
The company has spent $135.20 million cash to meet investing activities during the year as against cash inflow of $348.80 million in the last year.
The company has spent $377 million cash to carry out financing activities during the year as against cash outgo of $16.70 million in the last year period.
Cash and cash equivalents stood at $64.20 million as on Dec. 31, 2016, down 18.32 percent or $14.40 million from $78.60 million on Dec. 31, 2015.
Working capital declines
FMC Corporation has witnessed a decline in the working capital over the last year. It stood at $1,411 million as at Dec. 31, 2016, down 7.09 percent or $107.60 million from $1,518.60 million on Dec. 31, 2015. Current ratio was at 1.98 as on Dec. 31, 2016, down from 2.04 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 127 days for the quarter from 125 days for the last year period. Days sales outstanding went up to 97 days for the quarter compared with 95 days for the same period last year.
Days inventory outstanding was almost stable at 61 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 31 days for the quarter, when compared with the previous year period.
Debt comes down
FMC Corporation has recorded a decline in total debt over the last one year. It stood at $1,893 million as on Dec. 31, 2016, down 11.91 percent or $255.90 million from $2,148.90 million on Dec. 31, 2015. Total debt was 30.83 percent of total assets as on Dec. 31, 2016, compared with 33.97 percent on Dec. 31, 2015. Debt to equity ratio was at 0.95 as on Dec. 31, 2016, down from 1.13 as on Dec. 31, 2015.
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