FMC Corporation

This is our first report on FMC Corporation, a major agricultural sciences company in the U.S. FMC achieved significant results in the quarter because of high volume growth and aggressive pricing and it managed to deliver an all-around beat. Its new product sales are growing quickly, nearly doubling year over year, accounting for 11% of overall sales in the quarter. The company invested in increasing its market access in important countries like the United States and Brazil. Agricultural markets remain strong with high commodity prices, expanding cropland, and optimistic grower sentiment. Sales in North America climbed 35% year over year, driven by an optimistic grower and distribution partner attitude for the coming growing season. Certain maize fungicides, soybean herbicides, and other herbicides all saw significant growth in the quarter. Biologicals experienced double-digit growth in their Plant Health division, demonstrating the robustness of their portfolio. Besides, the company launched 17 new biological products and 2 new micronutrient items in the plant health business. In 2022, FMC also acquired BioPhero. Their unique mobile Arc Farm Intelligence technology continues to be improved in Precision Ag. For the first quarter of the year, they expect sales to be between $1.41 billion and $1.45 billion, representing a midpoint growth of 6% over the same period in 2022. We initiate coverage on the stock of FMC Corporation with a ‘Hold’ rating.