US chemical company FMC Corp. said it expects to meet or exceed third-quarter and full-year earnings expectations despite rising energy prices and sagging European currencies.
Analysts“ consensus es…
US chemical company FMC Corp. said it expects to meet or exceed third-quarter and full-year earnings expectations despite rising energy prices and sagging European currencies. Analysts“ consensus estimate for FMC“s third-quarter operating earnings is US$ 1.75 a share, according to research by First Call/Thomson Financial, compared with 1999 third-quarter earnings of US$ 1.33 a share before one-time items. For the full year, the analysts“ current consensus estimate is US$ 6.64 a share. “We anticipate strong year-over-year third-quarter comparisons for our agricultural products business and good results in our speciality chemicals business,” said Robert Burt, FMC chairman and chief executive officer, in a statement. “We“ve not yet seen a turnaround in orders for our energy systems business but we are beginning to see some progress.” Like many companies, Burt said, FMC is being hurt by rising energy prices and translation effects of lower European currencies but he said that strength of the company“s businesses and cost control efforts should help overcome the weakness. FMC said that Norsk Hydro A/S awarded FMC Energy Systems a three-year frame contract for subsea equipment, systems and installation services. FMC said it expects to receive a substantial portion of Norsk Hydro“s subsea systems business, estimated at more than US$ 100 million over the initial contract period. The agreement also includes options for two three-year extensions, for a total of nine years, the company said. FMC also said it has received a US$ 110 million distribution from Astaris LLC, its joint phospherous chemicals venture with Solutia Inc.. About US$ 21 million of that US$ 110 million was repayment of interim funding provided to Astaris by FMC, the company said. FMC said it would use the proceeds to pay down debt.