FMC Reports 1999 Second Quarter Results

Chicago (PROTEXT) - FMC Corporation (NYSE: FMC) today reportedsecond quarter earnings per share on a diluted basis fromcontinuing operations of $2.10, up 11 percent from $1.89 in the1998 second quarter, on sales of $1.1 billion. After-tax incomefrom continuing operations of $69 million increased from $68million in the 1998 second quarter. According to FMC Chairman and Chief Executive Officer RobertN. Burt, "During the quarter we made significant progress on allthe businesses we needed to fix or exit and aggressively investedin growth platforms. We announced plans to divest our processadditives operation and to form a joint venture with Solutia inphosphorus chemicals. We also saw profitability in hydrogenperoxide improve and executed a supply agreement that willimprove our cost position in commodity lithium chemicals. Inaddition, we acquired Tg Soda Ash and a Norwegian alginateproducer. Our financial performance continued to track our long-term goals. EPS was up 11 percent, ROI continues to improve, andwe met or exceeded Wall Street expectations for the sixthstraight quarter." Review of Operations Energy Systems sales were $294 million, down $24 million fromthe prior- year quarter; however, earnings of $25 million were up9 percent from the 1998 second quarter. The decrease in salesreflected the impact of lower oil prices on land wellheads andfluid control equipment. Increased earnings reflected costreductions, as well as higher subsea sales to major integratedoil companies. Sofec also had increased sales, which included thePetroCanada Terra Nova project received last year. Energy Systemsbacklog was $692 million, and is still declining from its peak ofmore than $1 billion in mid-1998, but currently is close toaverage historic levels. Food and Transportation Systems sales of $217 million weredown from $242 million in last year's quarter. Profits of $19million were down $1 million from the 1998 second quarter. Lowersales and earnings primarily reflected lower sales of airlinecargo loaders in Asia and North America, and lower volumes ofpassenger boarding bridges due to delays in airport projects.Earnings were up in FMC FoodTech, reflecting higher sales oftomato processing systems in a number of countries and offreezing systems in Europe. Food and Transportation Systemsbacklog was $269 million, down slightly from the end of the firstquarter. Agricultural Products sales of $175 million were down 3percent from the prior-year quarter, but profits of $37 millionwere up 4 percent from the 1998 second quarter. Lower saleslargely reflected the impact of lower crop prices and lowerCommand herbicide sales due to the wet planting season. Early-season sales in Brazil also were down, due to the continuingeffects of that country's economic issues. Increased earningsreflected continued cost reductions as well as an improved salesmix. During the period, product repositioning and labelexpansions increased sales of Capture, a premium pyrethroid. Inaddition, FMC's new herbicide, carfentrazone-ethyl, wasintroduced on corn and rice in North America. Specialty Chemicals sales of $153 million were down slightly,and earnings of $22 million were down approximately $4 million.Sales and profits of the lithium business decreased ascompetitive pressure continued. During the quarter, FMC announcedan agreement to source lithium carbonate from SQM, and took asmall restructuring charge to suspend lithium carbonateproduction in Argentina until market conditions improve.Pharmaceutical and Food Ingredients experienced some productionissues in the second quarter, slightly reducing profitability.During the second quarter, FMC completed the purchase of thealginate business from Norsk Hydro and announced the sale of itsprocess additives and bioproducts divisions. The bioproductstransaction closed in early July, and process additives isexpected to close at the end of this month. Industrial Chemicals sales of $238 million were down slightly,but profits of $37 million were up 14 percent from the prior-yearperiod. Hydrogen peroxide earnings improved, reflecting increasedprices and lower costs. Soda ash prices and volumes were down duelargely to weakness in Asia, which was partially offset bycontinued cost reductions. As previously announced, on June 30,FMC completed the acquisition of Tg Soda Ash from Elf AtochemNorth America, which adds 1.3 million tons of nameplateproduction capacity. During the quarter FMC also announced plansfor a joint venture of the phosphorus businesses of FMC andSolutia. The venture will provide complementary market strengthsand significant synergies, and is expected to be completed in thefourth quarter of 1999. In addition, during the second quarter, afederal judge set aside a $38 million jury verdict and ordered anew trial in a chemical release case in West Virginia, due toincorrect testimony by a major plaintiff witness. Corporate expenses were $19 million, down from $20 million inthe prior- year period, reflecting continued cost control. Netinterest expense was $27 million, down $1 million from the 1998second quarter. Net income for the 1999 second quarter was $86.9 million,which includes the sale of a discontinued defense property inCalifornia for $34 million, with a gain of $18 million after tax. Six Month Results For the first six months of 1999, sales were $2 billion, downslightly from the first half of 1998. After-tax income fromcontinuing operations was $99 million, up 5 percent from theprior-year period. Earnings per share from continuing operationswere $3.01, up 14 percent from the 1998 first half. EnergySystems sales were down, reflecting lower oil prices for much of1999, but profits were up approximately $4 million in the 1999period, reflecting continued cost cutting and strong subseashipments. Food and Transportation Systems sales were down,largely reflecting lower sales of airport products. Earnings wereup, reflecting improved profits in freezer systems and tomatoprocessing systems. Agricultural Products sales were down, butprofits were up, reflecting cost-cutting measures and improvedproduct mix. Specialty Chemicals sales and profits were down,primarily reflecting lower lithium results from continued pricecompetition. Industrial Chemicals sales were down, primarily dueto lower soda ash prices and volumes, but earnings were up,reflecting overall lower costs and improved hydrogen peroxideperformance. Corporate expenses in the 1999 first half were $4million lower than in the prior-year period. FMC Corporation is one of the world's leading producers ofchemicals and machinery for industry and agriculture. FMC employsapproximately 16,000 people at more than 100 manufacturingfacilities and mines in 25 countries. The company divides itsbusinesses into five segments: Energy Systems, Food andTransportation Systems, Agricultural Products, SpecialtyChemicals, and Industrial Chemicals. Safe Harbor Statement under the Private Securities Act of1995: Statements in this news release that are forward-lookingstatements are subject to various risks and uncertaintiesconcerning specific factors in the corporation's Form 10-K reportand other SEC filings. Such information contained hereinrepresents management's best judgment as of the date hereof basedon information currently available. The corporation does notintend to update this information and disclaims any legalobligation to the contrary.

FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited and in millions, except per share amounts)

Three Months

Six Months

Ended June 30

Ended June 30

1999

1998

1999

1998 Sales

$1,070.4

$1,129.4

$2,045.1 $2,151.8 Total costs and expenses 949.7 1,009.1

1,855.1 1,969.8

120.7

120.3

190.0 182.0 Minority interests

1.2

0.9

1.8 1.8 Net interest expense

26.8

28.2

54.7 52.8 Income from continuing operations before income taxes and cumulative effect of change in accounting principle

92.7

91.2

133.5 127.4 Provision for income taxes

23.8

23.6

34.3 33.0 Income from continuing operations before cumulative effect of change in accounting principle

68.9

67.6

99.2 94.4 Discontinued operation, net of income taxes

18.0

--

18.0 -- Income before cumulative effect of change in accounting principle

86.9

67.6

117.2 94.4 Cumulative effect of change in accounting principle, net of income taxes*

--

--

-- (36.1) Net income

$86.9

$67.6

$117.2 $58.3 Basic earnings per common share:

Continuing operations $2.17

$1.95

$3.09 $2.72

Discontinued operation 0.56

--

0.56

--

Cumulative effect of

change in accounting

principle*

--

--

-- (1.04) Net income per common share

$2.73

$1.95

$3.65 $1.68 Average number of shares used in basic earnings per share computations

31.8

34.6

32.1 34.7 Diluted earnings per common share:

Continuing operations $2.10

$1.89

$3.01 $2.64

Discontinued operation 0.55

--

0.55 --

Cumulative effect of

change in accounting

principle*

--

--

-- (1.01) Net income per common share

$2.65

$1.89

$3.56 $1.63 Average number of shares used in diluted earnings per share computations

32.8

35.7

32.9 35.7 * Reflects the required write-off in 1998 of $46.5 million ofcapitalized start-up costs under an accounting pronouncementissued in March 1998.

FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES

INDUSTRY SEGMENT DATA

(Unaudited and in millions)

Three Months

Six Months

Ended June 30

Ended June30

1999

1998

1999 1998 Sales Energy Systems

$294.1

$318.0

$584.3 $605.8 Food and Transportation Systems

217.3

241.5

398.8 420.6 Agricultural Products

175.1

180.9

321.7 352.9 Specialty Chemicals

153.2

155.7

301.7 310.2 Industrial Chemicals

238.0

241.2

451.4 478.3 Eliminations

(7.3)

(7.9)

(12.8) (16.0)

Total

$1,070.4

$1,129.4

$2,045.1$2,151.8 Income from continuing operations before income taxes and cumulative effect of change in accounting principle Energy Systems

$24.6

$22.5

$41.4 $37.2 Food and Transportation Systems

19.0

19.8

29.5 28.0 Agricultural Products

36.9

35.5

51.6 50.3 Specialty Chemicals

21.5

25.3

40.3 44.9 Industrial Chemicals

36.8

32.3

71.3 64.8 Operating profit from continuing operations

138.8

135.4

234.1 225.2 Corporate

(19.1)

(20.0)

(39.2)(43.3) Other income and (expense), net

(0.2)

4.0

(6.7) (1.7) Net interest expense

(26.8)

(28.2)

(54.7)(52.8) Income from continuing operations before income taxes and cumulative effect of change in accounting principle

$92.7

$91.2

$133.5$127.4 ots Original Text Service: FMC Corporation Internet:http://www.newsaktuell.de Contact: Investor Relations, RandyWoods, (in the USA) 312-861-6160, or Media, Tom Kline, 312-861-6100, or Pat Brozowski, 312-861-6104, all of FMC CorporationCompany News On-Call: http://www.prnewswire.com/comp/121861.htmlor fax, (in the USA) 800-758-5804, ext. 121861

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