FMC Corporation (FMC) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $79.70 million, or $ 0.59 a share in the quarter, against a net loss of $2.40 million, or $0.02 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $89.70 million, or $0.67 a share compared with $56.40 million or $0.42 a share, a year ago. Revenue during the quarter went down marginally by 2.77 percent to $807.70 million from $830.70 million in the previous year period. Gross margin for the quarter expanded 808 basis points over the previous year period to 34.60 percent. Total expenses were 85.75 percent of quarterly revenues, down from 99.94 percent for the same period last year. This has led to an improvement of 1419 basis points in operating margin to 14.25 percent.
Operating income for the quarter was $115.10 million, compared with $0.50 million in the previous year period.
Pierre Brondeau, FMC president, chief executive officer and chairman said: "FMC delivered another strong quarter, reporting adjusted earnings per share above the top end of guidance. Ag Solutions had a solid quarter, particularly in Latin America, reporting segment earnings at the top end of prior guidance. Lithium outperformed, increasing earnings by $16 million compared to the prior year quarter. Lithiums performance reflects the success of FMCs strategy to focus on higher value downstream specialty products. Health and Nutrition delivered strong margins, but revenue was below expectations. Overall, I am very pleased with the execution of our strategy.
For financial year 2016, the company forecasts diluted earnings per share to be in the range of $2.76 to $2.86 on adjusted basis.
Operating cash flow turns positive
FMC Corporation has generated cash of $387.80 million from operating activities during the nine month period as against cash outgo of $310.50 million in the last year period. The company has spent $97.20 million cash to meet investing activities during the nine month period as against cash inflow of $352.60 million in the last year period
The company has spent $240.40 million cash to carry out financing activities during the nine month period as against cash inflow of $28 million in the last year period.
Cash and cash equivalents stood at $130.70 million as on Sep. 30, 2016, down 24.76 percent or $43 million from $173.70 million on Sep. 30, 2015.
Debt comes down
FMC Corporation has recorded a decline in total debt over the last one year. It stood at $1,976.50 million as on Sep. 30, 2016, down 8.90 percent or $193.20 million from $2,169.70 million on Sep. 30, 2015. Total debt was 31.83 percent of total assets as on Sep. 30, 2016, compared with 33.65 percent on Sep. 30, 2015. Debt to equity ratio was at 0.93 as on Sep. 30, 2016, down from 1.01 as on Sep. 30, 2015.
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