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FMC Corporation (FMC) is an agricultural sciences company that provides innovative solutions to growers around the world. With a diverse product portfolio, the company is focused on crop protection, plant health and professional pest & turf management.
The company has a diverse geographic footprint with roughly equal revenue coming from North America, Asia, Latin America and Europe. Not surprisingly, the fastest growth rates came from Asia with 16% growth compared to just 8% in North America. The company anticipates that India, in particular, will be a significant growth market given its land mass and low input usage.
On a financial level, the company has successfully implemented cost reductions to drive improvements in its adjusted EBITDA margins. These margins rose by 20% to reach 24.2% of revenue during the third quarter of 2020, improving free cash flow conversion.
FMC Corporation reported third-quarter revenue that rose by 6.9% to $1.08 billion, beating consensus estimates by $10 million, along with non-GAAP earnings of $1.22 per share, beating consensus estimates by 11 cents per share. In addition, the company raised its 2020 revenue guidance to a range of $4.72-$4.78 billion and adjusted EPS guidance to $6.45-6.57 per share.
The company raised its dividend by 9.1% to 48 cents per share following these strong results, which represents a 1.62% forward yield. The dividend is payable on January 21, 2021, to shareholders on record as of December 31, 2020.
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