Yahoo Finance FMC Partners Syngenta to Transform Rice Weed Control in Asia
FMC Corporation FMC and Syngenta Crop Protection recently announced an agreement to introduce a breakthrough weed control technology in Asia. FMC discovered and produced a new active component, tetflupyrolimet, with Syngenta's assistance for rice development. It is the first significant herbicide with an innovative method of action (DHODH - HRAC Group 28) in more than three decades, bringing relief to farmers struggling with increasing weed resistance to conventional herbicides.
FMC and Syngenta will bring tetflupyrolimet-based products to key rice markets in Asia under the terms of the agreement. FMC will register and offer tetflupyrolimet, as well as a variety of tetflupyrolimet formulations for rice throughout Asia. FMC will focus on mixtures in China. Syngenta will register and commercialize the compound and a range of products in China for the rice market while supplying mixes for use on rice in India, Vietnam, Indonesia, Japan and South Korea. Syngenta will also market the chemical for rice in Bangladesh.
In addition, FMC will register and commercialize tetflupyrolimet and a full portfolio of tetflupyrolimet formulations in rice and other crop markets worldwide. Tetflupyrolimet has no known cross-resistance due to its novel way of action and will provide a key weed management tool to millions of producers worldwide. It provides excellent residual control at very low dosage rates and has a good sustainability profile.
Shares of FMC have lost 10.7% over the past year compared with industry’s decline of 7.7%.
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FMC expects revenues in the $6.08-$6.22 billion range for 2023, representing a 6% increase from 2022 levels at the midpoint. The company updated its adjusted EBITDA estimate from $1.48-$1.56 billion to $1.50-$1.56 billion, reflecting a 9% year-over-year increase at the midpoint.
FMC now forecasts adjusted earnings per share for 2023 in the $7.34-$7.94 range, implying a 3% increase from the 2022 level at the midpoint. The free cash flow for 2023 is expected to be between $530 million and $720 million. The company also forecasts second-quarter 2023 revenues in the $1.42-$1.48 billion range, flat at the midpoint compared with the prior-year quarter.
Adjusted second-quarter earnings per share are expected to be in the $1.66-$1.86 range, a 9% decrease from the prior-year quarter's levels at the midpoint. FMC also anticipates adjusted EBITDA in the range of $350-$370 million for the quarter, flat at the midpoint compared with the prior-year quarter.
FMC Corporation Price and Consensus
FMC Corporation price-consensus-chart | FMC Corporation Quote
Zacks Rank & Key Picks
FMC currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks to consider in the basic materials space include Steel Dynamics Inc. STLD, Nucor Corporation NUE and PPG Industries Inc. PPG. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Steel Dynamics currently has a Zacks Rank #2 (Buy). STLD’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 10.7% on average. STLD has rallied around 29.1% in a year.
Nucor currently sports a Zacks Rank #1. NUE’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 10.8% on average. NUE has rallied around 16.2% in a year.
PPG currently carries a Zacks Rank #2. PPG’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 6.8% on average. PPG has rallied around 16.2% in a year.
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