FMC Reports 1999 First Quarter Results

Chicago (PROTEXT) - FMC Corporation (NYSE: FMC) today reported first quarter earnings per share from continuing operations on a diluted basis of $0.92 per share, an increase of 23 percent from $0.75 per share in the 1998 period. After-tax income from continuing operations was $30 million, up from $27 million in the 1998 quarter. The company's return on investment increased 0.7 percent from last year's quarter. According to FMC Chairman and Chief Executive Officer Robert N. Burt: "First quarter results are on track with the plan to increase our return on investment and EPS growth. Based on these results, we have increasing confidence that we will exceed our EPS growth target of 10 percent in 1999." Review of Operations Energy Systems sales of $290 million were up slightly from $288 million in the 1998 first quarter. Earnings of $17 million were up 14 percent from the prior-year period. The improved results reflect higher subsea sales and continuing cost controls, partially offset by lower sales of land-based systems due to lower oil prices. Backlog of $781 million was down $97 million from the record year-end backlog in 1998. Food and Transportation Systems sales of $182 million were up slightly from $179 million in last year's quarter. Earnings of $11 million were up nearly 30 percent from the 1998 first quarter. Higher sales and margins primarily reflected strong performance at Frigoscandia, resulting from increased freezer plant expansions in North America, as well as the increasing success of FMC FoodTech's after-market service expansion. Food and Transportation Systems backlog was $278 million at the end of the quarter, up $22 million from year-end 1998. Agricultural Products sales were $147 million, down from $172 million in last year's quarter due to lower stocking levels in the distribution channel. Earnings were $15 million, approximately level with last year. The timing impact associated with the lower sales level was completely offset by improved manufacturing performance, improved product margins and the continuing impact of 1998 and 1999 cost reductions. Specialty Chemicals sales were $148 million, down from $154 million in the prior-year period. Earnings of $19 million were down from $20 million in 1998. Improved results in the food and pharmaceutical ingredients business were offset by lower sales and earnings in lithium, reflecting continued price competition in the commodity side of the business. Industrial Chemicals first quarter sales were $213 million, down 10 percent from last year's quarter. Despite the sales decline, earnings improved $2 million to $34 million. Sales and earnings for soda ash were down on price and volume declines, even though the Asian impact appears to have bottomed. Hydrogen peroxide profits increased on continued lower costs and improved volumes. The outlook for hydrogen peroxide price continues to improve. Corporate expenses were $20 million, down from $23 million in the first quarter of 1998, reflecting continued cost reductions. Net interest expense was $28 million, up from $25 million in last year's quarter, due to higher debt levels. There was an average of 33 million shares outstanding in the 1999 first quarter, compared with 35.8 million shares in last year's first quarter, reflecting the company's ongoing share repurchase program. FMC is one of the world's leading producers of chemicals and machinery for industry and agriculture. FMC employs approximately 16,000 people at more than 100 manufacturing facilities and mines in 25 countries. The company divides its businesses into five segments: Energy Systems, Food and Transportation Systems, Agricultural Products, Specialty Chemicals, and Industrial Chemicals. Safe Harbor Statement under the Private Securities Litigation Act of 1995: Statements in this news release that are forward- looking statements are subject to various risks and uncertainties concerning specific factors in the corporation's Form 10-K report and other SEC filings. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The corporation does not intend to update this information and disclaims any legal obligation to the contrary. FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited and in millions, except per share amounts) Three Months Ended March 31 1999 1998 Sales $974.7 $1,022.4 Total costs and expenses 905.4 960.7 TOTAL 69.3 61.7 Minority interests 0.6 0.9 Net interest expense 27.9 24.6 Income before income taxes and cumulative effect of change in accounting principle 40.8 36.2 Provision for income taxes 10.5 9.4 Income before cumulative effect of change in accounting principle 30.3 26.8 Cumulative effect of change in accounting principle, net of income taxes* 0.00 (36.1) Net income (loss) $30.3 $(9.3) Basic earnings (loss) per common share: Income before accounting change $0.94 $0.77 Cumulative effect of change in accounting principle* 0.00 (1.04) Net income (loss) per common share $0.94 $(0.27) Average number of shares used in basic earnings per share computations 32.3 34.8 Diluted earnings (loss) per common share: Income before accounting change $0.92 $0.75 Cumulative effect of change in accounting principle* 0.00 (1.01) Net income (loss) per common share $0.92 $(0.26) Average number of shares used in diluted earnings per share computations 33.0 35.8 - Reflects the required write-off in 1998 of $46.5 million of capitalized start-up costs under an accounting pronouncement issued in March 1998. FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES INDUSTRY SEGMENT DATA (Unaudited and in millions) Three Months Ended March 31 1999 1998 Sales Energy Systems $290.2 $287.8 Food and Transportation Systems 181.5 179.1 Agricultural Products 146.6 172.0 Specialty Chemicals 148.5 154.5 Industrial Chemicals 213.4 237.1 Eliminations (5.5) (8.1) Total $974.7 $1,022.4 Income before income taxes and cumulative effect of change in accounting principle Energy Systems $16.8 $14.7 Food and Transportation Systems 10.5 8.2 Agricultural Products 14.7 14.8 Specialty Chemicals 18.8 19.6 Industrial Chemicals 34.5 32.5 Operating profit from continuing operations 95.3 89.8 Corporate (20.1) (23.3) Other income and (expense), net (6.5) (5.7) Net interest expense (27.9) (24.6) Income before income taxes and cumulative effect of change in accounting principle $40.8 $36.2 Note: Effective December 31, 1998, FMC adopted Statement of Financial Accounting Standards No. 131 with respect to segment reporting. As a result, FMC has changed the number and composition of ist segments. The prior period has been restated and is presented on a comparable basis. ots Original Text Service: FMC Corporation Internet: http://www.newsaktuell.de Contact: Media, Pat Brozowski, (USA) 312-861-6104, or Tom Kline, (USA) 312-861-6100, or Investors, Randy Woods, (USA) 312- 861-6160, all of FMC Corporation Company News On-Call: http://www.prnewswire.com/comp/121861.html or Fax, (USA) 800- 758-5804, ext. 121861 Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents.