FMC shares hit over two-decade low as inventory, pricing woes spur forecast cut

By Reuters News

Oct 15 (Reuters) - FMC FMC.N shares plunged 34% on Thursday to an over 23-year low after the agricultural chemicals maker slashed its third-quarter outlook and forecast up to $675 million in charges related to price cuts and changes to its US pricing model.

The company is grappling with weak distributor demand as falling market prices and increased generic competition make higher-priced products harder to sell, leaving customers reluctant to replenish inventories.

Here are more details:

  • FMC expects Q3 revenue, excluding India, of $65 million to$125 million, down from its earlier forecast of $840 million to $900 million

  • The company has forecast an adjusted EBITDA loss of $510 million to $565 million, versus its previous forecast of $120 million to $140 million in profit

  • Revised outlook includes $625 million to $675 million in charges from commercial actions affecting revenue and adjusted EBITDA

  • "We've never seen anything quite like this... the magnitude of reduction to FMC's updated outlook for 3Q26 is stunning optically and still poor even after looking through a large, distortionary charge," said Kevin McCarthy of Vertical Research Partners

  • FMC said the commercial actions include reducing prices on selected products held by distributors in Brazil, Argentina, the United States and Canada

  • It will also overhaul its US selling model, reducing the gap between gross list prices and net prices after rebates

  • FMC expects to remain in compliance with debt covenants at September 30, but plans talks with lenders on potential covenant changes over the next year

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