Last week, the FMC Corporation of the United States published fourth quarter and full-year figures for 1996.
FMC reported fourth quarter 1996 sales of US$ 1.4 billion from continuing operations, an …
Last week, the FMC Corporation of the United States published fourth quarter and full-year figures for 1996. FMC reported fourth quarter 1996 sales of US$ 1.4 billion from continuing operations, an increase of 15% from US$ 1.2 billion in the fourth quarter of 1995. After-tax income from continuing operations of US$ 45 million increased from US$ 25 million in the fourth quarter of 1995. Earnings per share from continuing operations increased to US$ 1.17 compared with US$ .66 in the fourth quarter of 1995. In 1996, total sales from continuing operations were US$ 5 billion, up 12% from US$ 4.5 billion in 1995. After-tax income of US$ 218 million from continuing operations increased from US$ 214 million before special income and expense items in 1995. Earnings from continuing operations were US$ 5.73 per share compared with the prior year“s earnings of US$ 5.68 per share from continuing operations before special income and expense items. According to FMC Chairman and Chief Executive Officer Robert N. Burt: “We achieved record sales and income from continuing operations in 1996 despite significant expenses in the start-up of our growth strategy investments. We expect further growth in 1997, but it will be moderated by weakness in the soda ash and hydrogen peroxide markets, and start-up expenses associated with our new herbicide and lithium plants.” In its quarterly review of operations, FMC reported that industrial chemicals sales of US$ 273 million were a 5% improvement on the fourth quarter of 1995. Earnings were US$ 65 million (net of minority interest), including a US$ 24 million gain (US$ 6.5 million after tax) from the sale of the company“s minority interest in a Japanese hydrogen peroxide venture. Earnings in the 1995 period were US$ 25 million, reflecting manufacturing disruptions that negatively affected earnings. In the 1996 quarter, soda ash prices and volumes were up from the 1995 period. Phosphorus sales and profits were ahead of 1995, reflecting higher prices. European chemical operations maintained strong performance based on higher prices and continuing cost improvements. The review also stated that performance chemicals sales in 1996 totalled US$ 270 million, an increase of 8% on the US$ 250 million of the same period in 1995, while earnings of US$ 12 million in 1996 had increased from US$ 6 million in the 1995 fourth quarter. Machinery and Equipment sales of US$ 556 million increased from US$ 414 million in the 1995 quarter, and profits of US$ 22 million increased 24% from US$ 17 million in the prior-year period. Sales of energy equipment were up while airline equipment sales improved significantly on the basis of market share gains in a strong market. Food machinery sales improved on the strength of acquisitions. At the end of 1996, the Machinery and Equipment backlog was US$ 923 million, up from US$ 545 million at the beginning of the year, reflecting acquisitions and increased energy equipment activity. For the full year, industrial chemicals sales of US$ 1 billion increased 7%, and profits (net of minority interest) of US$ 182 million increased 19% from 1995. Earnings in 1996 reflect the full-year minority interest impact of the July 1995 sale of a 20% interest in FMC“s soda ash business. 1996 machinery and equipment sales of US$ 1.7 billion increased 25%, and profits of US$ 76 million increased 54%. Increased sales resulted from acquisitions and strengthening market conditions in the energy, food machinery and airline equipment businesses. Corporate expenses declined US$ 8 million, reflecting the benefits of the company“s restructuring programme. Net interest expense of US$ 93 million increased 25%, reflecting increased capital spending, acquisitions and higher working capital requirements associated with sales growth. The FMC Corporation produces of chemicals and machinery for industry, government and agriculture. The Chicago-based company reported 1996 exports to more than 100 countries accounting for 48% of total annual revenues. FMC employs 22,000 people at 115 manufacturing facilities and mines in 24 countries. The company divides its businesses into four major segments: Industrial Chemicals, Performance Chemicals, Machinery and Equipment, and Defense Systems.