6407cce44cb4753f8ac3f152431df82249b85f609794278fffd4c506ae38d928

The significant negative provision of **$(1,197.0) million** in Q4 2023 was primarily driven by two major one-time tax benefits. **Swiss tax incentives** played a key role, as FMC's Swiss subsidiaries received ten-year tax incentives (also effective retroactively for 2021 and 2022), resulting in deferred tax benefits of **$1,149 million** that were partially offset by valuation allowances of **$318 million**, leading to a net future tax reduction of **$831 million**. In addition, the **Brazil valuation allowance release**—a response to new tax laws and transfer pricing adjustments in Brazil—delivered a tax benefit of approximately **$223 million**. These factors combined resulted in the notably large tax benefit reported in Q4 2023.  **[0000037785-24-000033_fmc-20231231.htm:52]** **[0000037785-24-000017_fmcex991123123ng.htm:12]** 

Why was Provision (benefit) for income taxes so negative in Q4 2023?

The drop to **$18.10 million** in Q4 2023 was mainly driven by a **sharp revenue decline** (from **$1,622.0 million** to **$1,146.1 million**), a significant increase in **restructuring and other charges** (rising to **$164.3 million** compared to a gain in the prior year), a **decrease in gross margin** (falling from **$685.6 million** to **$435.7 million**), and **higher interest expenses** (increasing to **$56.7 million**) in Q4 2023.  **[0000037785-24-000017_fmcex991123123ng.htm:7]** **[0000037785-24-000033_fmc-20231231.htm:157]** 

Why did income from continuing operations before income taxes drop to 18.10 in Q4 2023?

The dramatic surge in Q4 2023 income from continuing operations was primarily driven by **one-time tax benefits**. These tax benefits arose from new tax incentives for the company’s Swiss subsidiaries, alongside the release of the FMC Brazil valuation allowance following new tax laws, which substantially increased income. This positive impact outweighed the negative effects from **currency-related charges** of **$101.0 million** incurred due to actions by the Argentine Government, as well as the **severance and restructuring costs** associated with Project Focus and a decline in volumes from channel destocking and adverse weather conditions in Brazil.  **[0000037785-24-000033_fmc-20231231.htm:42]** **[0000037785-24-000033_fmc-20231231.htm:157]** **[0000037785-24-000017_fmcex991123123ng.htm:1]** **[0000037785-24-000033_fmc-20231231.htm:114]** 

What caused the dramatic surge in income from continuing operations in Q4 2023?

FMC's net income turned negative in Q1 2024 due to a combination of factors. The company experienced a **32% revenue decline**, driven by a **27% drop in volume** from channel destocking, a **4% price decrease**, and a **1% decline from foreign currency headwinds**.  **[0000037785-24-000064_fmcex991033124.htm:1]** **[0000037785-24-000066_fmc-20240331.htm:2]** **[20240506PH06526:0]**  In addition, **restructuring and other charges surged to $40.9 million** (up from $12.5 million year-over-year), which significantly impacted profitability.  **[0000037785-24-000066_fmc-20240331.htm:2]** **[20240506PH06526:4]**  The lower **gross margin**, **increased interest expense** (rising to $61.7 million from $51.4 million), and worsening losses in **discontinued operations** further compounded the issues, collectively leading to a negative net income in Q1 2024.  **[0000037785-24-000066_fmc-20240331.htm:2]** **[20240506PH06526:4]** 

Why did net income turn negative in Q1 2024?

FMC’s Q1 2024 revenue declined due to multiple factors: a **27% volume decline** driven by widespread channel destocking, **4% pricing pressure** particularly in regions like Latin America, and **1% foreign currency headwinds**. Additionally, regional issues such as a **48% revenue drop in North America**, **20% fall in Latin America**, **20% decline in EMEA**, and **29% drop in Asia** further contributed to the overall decrease in revenue.  **[0000037785-24-000064_fmcex991033124.htm:1]** **[0000037785-24-000066_fmc-20240331.htm:38]** 

What factors contributed to the lower revenue in Q1 2024?

25bbdc3c889ea23fb17ffd78ef221963aa9f7d3b0c6f1456ef2de9a9a932a8af

The drop in cash to **$302.4 million** in Q4 2023 can primarily be attributed to several factors. **Negative cash flow from operating activities** played a major role—with FMC reporting a **negative $300.3 million** in operating cash flow for 2023, a dramatic shift from a positive performance in the previous year.  **[0000037785-24-000017_fmcex991123123ng.htm:15]**  In addition, the company experienced **negative free cash flow** of **$524 million**, reflecting weaker operating cash flow and increased working capital needs.  **[0000037785-24-000017_fmcex991123123ng.htm:0]**  **Currency-related charges** of **$101.0 million** due to actions by governments further impacted the cash position.  **[0000037785-24-000033_fmc-20231231.htm:114]**  Moreover, seasonal working capital requirements contributed to the overall cash outflow.  **[0000037785-24-000033_fmc-20231231.htm:56]** 

Why did cash drop to 302.4 in Q4 2023?

FMC Corporation’s total assets increased to **$12,218.7 million in Q3 2024** primarily due to several key factors. The company experienced growth in its **cash and cash equivalents** (rising from **$302.4 million** to **$416.7 million**), an increase in **trade receivables** (up from **$2,703.2 million** to **$2,890.5 million**), and a notable rise in **prepaid and other current assets** (increasing from **$398.9 million** to **$616.2 million**). Additionally, a significant increase in **deferred income taxes** (from **$1,336.6 million** to **$1,621.1 million**) further contributed to the asset growth. These positive shifts offset the declines in inventories and intangible assets, resulting in the net increase observed in total assets.  **[20241029PH43124:8]** **[0000037785-24-000119_fmc-20240930.htm:4]** **[0000037785-24-000119_fmc-20240930.htm:36]** 

What factors contributed to Total Assets rising to 12,218.7 in Q3 2024?

The documents indicate that FMC’s short‐term debt and current portion of long‐term debt was **1,878.6** million in Q1 2023 and **1,311.1** million in Q1 2024.  **[0000037785-23-000099_fmc-20230331.htm:4]** **[0000037785-24-000066_fmc-20240331.htm:4]**  However, the explanations provided only describe the change from **$934.0 million** as of December 31, 2023, to **$1,311.1 million** as of March 31, 2024 – an increase driven by factors such as higher commercial paper borrowings and a rise in short-term foreign debt.  **[0000037785-24-000066_fmc-20240331.htm:4]** **[0000037785-24-000066_fmc-20240331.htm:17]** **[0000037785-24-000066_fmc-20240331.htm:42]**  There is no direct explanation in the documents for why the Q1 2024 value is lower compared to Q1 2023.  


Why is short-term debt lower at 1,311.1 in Q1 2024?

The increase in long-term debt, less the current portion, to **$3,024.6 million** in Q1 2024 represents a **minimal change of $1 million** over the previous period, and the documents do not provide specific reasons for this slight shift. However, it is noted that the overall increase in total debt was driven by a rise in short-term borrowings, particularly through commercial paper, which increased significantly from **$739.5 million** at December 31, 2023 to **$1,109.2 million** at March 31, 2024.  **[0000037785-24-000066_fmc-20240331.htm:4]** **[0000037785-24-000066_fmc-20240331.htm:17]** **[0000037785-24-000066_fmc-20240331.htm:42]** 

What drove the increase in long-term debt to 3,024.6 in Q1 2024?

a664e9d4a0f7f63e90fc4d0e2a12ba11e6484a44b83c5947e8d1c41e8ac4359e

Revenue (USD, millions)

Costs of sales and services (USD, millions)

Gross margin (USD, millions)

Selling, general and administrative expenses (USD, millions)

Research and development expenses (USD, millions)

Restructuring and other charges (income) (USD, millions)

Total costs and expenses (USD, millions)

Income from continuing operations before non-operating pension and postretirement charges (income), interest expense, net and income taxes (USD, millions)

Non-operating pension and postretirement charges (income) (USD, millions)

Interest expense, net (USD, millions)

Income (loss) from continuing operations before income taxes (USD, millions)

Provision (benefit) for income taxes (USD, millions)

Income (loss) from continuing operations (USD, millions)

Discontinued operations, net of income taxes (USD, millions)

Net income (loss) (USD, millions)

Net income (loss) attributable to noncontrolling interests (USD, millions)

Net income (loss) attributable to FMC stockholders (USD, millions)

307238b872f455ef3941066fc1aa42066fa6a7b54e330f36b30ae9bcb4b7a0c7

1e6da490688d329357f480112dff4f3918b980f4fa70ca70bbe9c1042a7cc146

b9510b094beb94836bba36cad7f874263c232699b1d63da33bb2a213f082761f

011de5cf1d7d50695ae0a784df20acee34f220d4135c67d2c9f6e3318bd3786a

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

55706749dcdae24047eacd1c789035f0b4d63b58de67e59ed28c9d493fefa508

Volume change year-over-year (percent)

Price change year-over-year (percent)

715317a53e8c6a7d39995595d2a07ec8fb9091d8756b219c5187dbe1fd21b32c

0c1a661522469388c9c39ab9308e796252a39b6fee89af6fad86895f03da57ef

North America

Latin America

EMEA

Asia

Asia Pacific

- United States

- Brazil

Total Revenue

bfa54d1e0e6d51100b8211154d2496e401ba453a33fe40cda9e5164f32d3e53a

FMC (FMC)

Financials