FMC Reports 1999 Third Quarter Results

CHICAGO (PROTEXT) - FMC Corporation today reported thirdquarter sales from continuing operations of $1 billion, comparedwith $1.1 billion in the 1998 quarter. Net income per share on adiluted basis was $1.98, including one-time gains from the salesof FMC's process additives and bioproducts operations, andcharges for restructuring costs and impairments. Excluding one-time items, after-tax income from continuing operations was $43.1million, and after-tax income per share from continuingoperations was $1.33, down from $1.60 in the 1998 third quarter. According to FMC Chairman and Chief Executive Officer RobertN. Burt: "The continuing recovery of our Industrial Chemicalsbusiness highlights our third quarter performance. The momentumin this market, and favorable conditions in most other markets,should allow us to meet or exceed our 1999 earnings growth targetof 10 percent -- despite the significant setback in AgriculturalProducts due to the extremely low pest pressure in cotton andcorn. This same momentum also should allow us to meet our 10percent earnings growth goal in 2000." Review of Operations Energy Systems sales were $251 million, down from $330 millionin the 1998 quarter. Earnings were $23 million, down from $27million in last year's quarter. The decrease in sales reflectedthe continuing impact of lower oil prices earlier in the year,primarily affecting land-based wellheads and fluid controlequipment. Despite a still substantial backlog in subsea systems,sales were somewhat lower based primarily on timing ofdeliveries. Higher margins reflected continued cost reductions.Energy Systems backlog was at a more traditional level of $618million at the end of the third quarter, down from the peakreached in mid-1998. FMC should benefit from the current strengthof oil prices as oil companies are expected to increase theiryear 2000 exploration and production budgets. Food and Transportation Systems sales of $220 million declinedslightly from last year's quarter. Earnings of $18 million weredown from $22 million in the 1998 third quarter. Sales andearnings for FMC FoodTech were up slightly from last year, butwere offset by lower sales and earnings in airport products --down from 1998 record levels. Food and Transportation Systemsbacklog was $250 million, down slightly from the 1999 secondquarter. Agricultural Products sales of $177 million were down slightlyfrom last year's quarter. Earnings of $10 million declined from$29 million last year, reflecting significantly lower pestpressure in North America, as previously announced. As a result,the business reported lower sales to the rescue markets in anumber of areas, including corn in Texas and cotton in thesouthern and western United States. Specialty Chemicals sales of $139 million were down from $147million in last year's quarter, reflecting the divestitures ofthe process additives and bioproducts operations. Excluding thegains on these transactions, earnings were $17 million, up from$15 million in the 1998 third quarter. Sales and profits for bothFMC BioPolymer (the combined food ingredients and pharmaceuticalbusiness) and lithium increased from last year's quarter. Higherearnings reflected increased sales volumes, as well as theacquisition of Pronova during the quarter. Norway-based Pronovais a major producer of alginates, made from cold-water seaweedand used in both food and pharmaceutical applications. Industrial Chemicals sales of $252 million were up 5 percentfrom last year's quarter, and profits of $30 million were up 28percent. Soda ash sales and profits were up on higher volumes,reflecting the acquisition of Tg Soda Ash on June 30, 1999.During the quarter, FMC announced a $4-per-ton price increase insoda ash, although domestic pricing for the year 2000 will not befinalized until contract negotiations are completed at the end ofthis year. Hydrogen peroxide sales were up, and earnings rosesignificantly on higher prices and lower costs. Given the 1999price increases, average prices in hydrogen peroxide continue toimprove as multi-year contracts are renegotiated. During the 1999second quarter, FMC announced plans for a joint venture withSolutia Inc. combining the phosphorus businesses of bothcompanies. The joint venture will provide complementary marketstrengths and significant synergies, and is expected to becompleted in the fourth quarter of 1999. Net interest expense was $27 million, down from $29 million inlast year's quarter. During the third quarter, FMC alsorepurchased $69 million of common stock. Corporate expenses were$20 million, up slightly from the third quarter last year. Net income for the 1999 third quarter was $64 million or $1.98per share. Net income includes the gains on the sales of theprocess additives and bioproducts operations of $35 million and$12 million, respectively, after tax. Net income also includedimpairments of certain U.S. lithium and Industrial Chemicalsfacilities of $18 million after tax, and restructuring charges of$9 million after tax. Nine Month Results For the first nine months of 1999, sales were $3.1 billion,down from $3.3 billion for the 1998 period. Net income of $181million included one-time gains from property sales and businessdivestitures as well as charges for the impairment of facilitiesand restructuring programs. Excluding one-time items, year-to-date after-tax income from continuing operations was $4.35 pershare, up from $4.24. Energy Systems sales of $835 million declined, while profitsremained approximately flat, reflecting lower costs. Food andTransportation Equipment sales of $619 million and profits of $48million were down on lower results in the airport productsoperation. Agricultural Products sales of $499 million declinedfrom $531 million, and profits of $61 million were down from $79million, primarily reflecting lower pest pressure in the thirdquarter. Specialty Chemicals sales of $441 million and earningsof $57 million declined from last year's quarter, primarilyreflecting lower lithium earnings during the first half of theyear. Industrial Chemicals sales of $703 million were down from$717 million, but earnings of $102 million increased from $88million in the prior-year period. Results reflect lower costs andimproved pricing in hydrogen peroxide, as well as the Tg Soda Ashacquisition. Corporate expenses were $3 million lower, and netinterest expense was flat compared with the same period lastyear. 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 FMC's Form 10-K report and otherSEC filings. Such information contained herein representsmanagement's best judgment as of the date hereof based oninformation currently available. FMC does not intend to updatethis information and disclaims any legal obligation to thecontrary.

FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited and in millions, except per shareamounts)

Three Months

Nine Months

Ended September 30

Ended September30

1999

1998

1999 1998 Sales

$1,034.3

$ 1,110.7

$ 3,079.4

$3,262.5 Operating costs and expenses

947.6

1,004.9

2,802.6 2,974.7 (Gains) on sales of businesses

(55.5)

-

(55.5) - Asset impairments

29.1

-

29.1 - Restructuring and other charges

14.7

-

14.7 - Total costs and expenses

935.9

1,004.9

2,790.9 2,974.7

98.4

105.8

288.5 287.8 Minority interests

1.9

2.5

3.8 4.3 Net interest expense 26.8

28.5

81.5 81.3 Income from continuing operations before income taxes and cumulative effect of change in accounting principle

69.7

74.8

203.2 202.2 Provision for income taxes

5.6

19.3

40.0 52.4 Income from continuing operations before cumulative effect of change in accounting principle 64.1

55.5

163.2 149.8 Discontinued operation, net of income taxes

-

-

18.0 - Income before cumulative effect of change in accounting principle 64.1

55.5

181.2 149.8 Cumulative effect of change in accounting principle, net of income taxes*

-

-

- (36.1) Net income

$64.1

$ 55.5

$ 181.2 $113.7 Basic earnings per common share: Continuing operations $2.04

$ 1.64

$ 5.13 $4.36 Discontinued operation

-

-

0.57 - Cumulative effect of change in accounting principle* -

-

- (1.05) Net income per common share

$2.04

$ 1.64

$ 5.70 $3.31 Average number of shares used in basic earnings per share computations 31.4

33.8

31.8 34.4 Diluted earnings per common share: Continuing operations $1.98

$ 1.60

$ 4.99 $4.24 Discontinued operation -

-

0.55 - Cumulative effect of change in accounting principle* -

-

- (1.02) Net income per common share

$1.98

$ 1.60

$ 5.54 $3.22 Average number of shares used in diluted earnings per share computations 32.3

34.7

32.7 35.3 * 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

CONDENSED CONSOLIDATED STATEMENTS OF INCOME FROM CONTINUINGOPERATIONS

EXCLUDES SPECIAL EXPENSE ITEMS* AND GAINS ON SALES OFBUSINESSES**

(Unaudited and in millions, except per share amounts)

Three Months

NineMonths

Ended September 30

EndedSeptember 30

1999

1998

1999 1998 Sales

$ 1,034.3

$ 1,110.7

$ 3,079.4

$3,262.5 Operating costs and expenses

947.6

1,004.9

2,802.6 2,974.7

86.7

105.8

276.8 287.8 Minority interests

1.9

2.5

3.8 4.3 Net interest expense 26.8

28.5

81.5 81.3 Income from continuing operations before income taxes, excluding special expense items* and gains on sales of businesses**

58.0

74.8

191.5 202.2 Provision for income taxes

14.9

19.3

49.2 52.4 After-tax income from continuing operations, excluding special expense items* and gains on sales of businesses** $43.1

$ 55.5

$ 142.3 $149.8 Basic after-tax continuing income per share, excluding special expense items* and gains on sales of businesses**

$1.37

$ 1.64

$ 4.47 $4.36 Average number of common shares used in basic per share computations

31.4

33.8

31.8 34.4 Diluted after-tax continuing income per share, excluding special expense items* and gains on sales of businesses**

$1.33

$ 1.60

$ 4.35 $4.24 Average number of common shares used in diluted per share computations 32.3

34.7

32.7 35.3 * Special expense items consist of asset impairments andrestructuring and other charges in 1999. ** Gains on sales of businesses consist of the sales ofProcess Additives and BioProducts operations in 1999.

FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES

INDUSTRY SEGMENT DATA

(Unaudited and in millions)

Three Months

Nine Months

Ended September 30

Ended September30

1999

1998

1999

1998 Sales Energy Systems

$251.1

$330.5

$835.4 $936.3 Food and Transportation Systems

220.0

223.8

618.8 644.4 Agricultural Products177.2

178.5

498.9 531.4 Specialty Chemicals 139.2

147.4

440.9 457.6 Industrial Chemicals 251.7

238.9

703.1 717.2 Eliminations

(4.9)

(8.4)

(17.7) (24.4)

$1,034.3

$1,110.7

$3,079.4$3,262.5 Income from continuing operations before income taxes and cumulative effect of change in accounting principle Energy Systems

$22.9

$27.0

$64.3 $64.2 Food and Transportation Systems

18.5

22.5

48.0 50.5 Agricultural Products 9.9

29.0

61.5 79.3 Specialty Chemicals

17.2

14.9

57.5 59.8 Industrial Chemicals 30.2

23.6

101.5 88.4 Operating profit from continuing operations 98.7

117.0

332.8 342.2 Asset impairments (A) (29.1)

-

(29.1) - Restructuring and other charges

(14.7)

-

(14.7) - Gains on sales of businesses (B)

55.5

-

55.5 - Corporate

(19.7)

(19.0)

(58.9) (62.3) Other income and (expense), net

5.8

5.3

(0.9) 3.6 Net interest expense (26.8)

(28.5)

(81.5) (81.3) Income from continuing operations before income taxes and cumulative effect of change in accounting principle

$69.7

$74.8

$203.2 $202.2 Note: Effective December 31, 1998, FMC adopted Statement ofFinancial Accounting Standards No. 131 with respect to segmentreporting. As a result, FMC has changed the number andcomposition of its segments. The prior periods have been restatedand are presented on a comparable basis. (A) Asset impairments relate to Specialty Chemicals ($20.7million) and Industrial Chemicals ($8.4 million). (B) Gains on sales of businesses relate to Process Additives($35.4 million) and BioProducts ($20.1million) operationsattributable to Specialty Chemicals. ots Original Text Service:FMC Corporation Internet: http://www.newsaktuell.de Contact:Media, Tom Kline, 312-861-6100, Investor Relations, Randy Woods,312-861-6160, Pat Brozowski, 312-861-6104 all of FMC CorporationCompany News On-Call: http://www.prnewswire.com/comp/121861.htmlor fax, 800-758-5804, ext. 121861

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