|By PR Newswire||
|December 11, 2012 04:48 PM EST||
PHILADELPHIA, Dec. 11, 2012 /PRNewswire/ -- FMC Corporation (NYSE:FMC) today announced the company is on track to meet or exceed aggressive performance targets as part of its Vision 2015 strategy to profitably double the company's size.
At its 2012 Investor Day conference in New York, Pierre Brondeau, FMC president, CEO and chairman, said that over the last three years, FMC has executed its growth plan and has capitalized on the unique strengths of the company to deliver strong performance against Vision 2015 targets announced in 2010.
"We developed an aggressive, but achievable, strategy to unlock the growth potential of FMC, leading to a larger, more profitable, faster growing specialty chemicals company," Brondeau said. "Halfway through our plan, we are well on our way to achieve or exceed our targets. We've delivered exceptional results over the last several years, despite continuing macroeconomic uncertainty."
Strong Progress to Deliver Vision 2015
The company provided an update on its expectations for Vision 2015 during the event:
- FMC expects to exceed its $5 billion 2015 sales target by at least 10 percent. This would represent more than doubling of company revenues since 2009.
- The company expects to meet or exceed its 2015 EBIT target of $1.2 billion, approximately 2.5 times its EBIT in 2009. EBIT is up 50 percent over the last three years.
- Return on Invested Capital (ROIC) will remain well above the Vision 2015 target of mid-teens or higher. The company has expanded total EBIT margins, up more than 120 basis points from 2009 through today, despite significant growth investments. The company expects EBIT margins to continue to expand an additional 230 basis points by 2015.
- FMC continues to maintain disciplined and balanced cash deployment, with more than $1.5 billion deployed in the last three years. Approximately 40 percent has been used for organic reinvestment, approximately 20 percent for external growth, and approximately 35 percent returned to shareholders in the form of dividends and share repurchases.
Updated Vision 2015 Expectations in Reportable Segments
FMC expects its Agricultural Products Group to deliver sales of approximately $2.8 billion and EBIT of approximately $675 million in 2015. Performance drivers include a rich organic growth pipeline with sustained premium margins and a unique manufacturing and R&D model that delivers results at lower cost.
The Specialty Chemicals Group is expected to deliver sales of approximately $1.2 billion and EBIT of approximately $275 million in 2015. Driving this performance are continued solid, steady performance from the BioPolymer business with the new natural colors and pectin product lines helping to accelerate growth. Lithium performance is anticipated to improve, driven by mix optimization and cost reduction initiatives.
The Industrial Chemicals Group is expected to deliver sales of approximately $1.4 billion, generating EBIT of approximately $250 million in 2015. This performance will be driven by the company's market leadership in soda ash, the continuing shift toward higher value specialties in Peroxygens and growing the new FMC Environmental Solutions business unit.
Cash Deployment Through 2015
FMC expects to have approximately $4 billion in cash to deploy over the plan horizon ending in 2015. Approximately $3 billion will be generated from cumulative cash flow from operations, with the remainder coming from the company's borrowing capacity. The company expects to invest more in organic growth opportunities than originally contemplated at the start of Vision 2015, and will continue to pursue strategic external investments. Large, complex or transformational acquisitions are not expected over the plan horizon.
The company earlier today announced that its Board of Directors approved a 50 percent increase in its dividend. In the future, FMC's dividend is expected to grow broadly in line with the rate of earnings growth. Furthermore, the company expects to continue share repurchases at a pace of $100 million to $150 million per year, with timing and size of repurchases opportunistic relative to other uses of cash.
Earnings Per Share Growth
FMC expects adjusted earnings per share (EPS) to grow at a rate of approximately 18 to 22 percent per year from 2012 through 2015, continuing the company's strong EPS performance. For 2013, while the company is not quite ready to provide formal guidance, the company does anticipate adjusted EPS growth in the mid-teens percent range versus 2012.
"Our management team is intently focused on delivering what we said we'd do," said Brondeau. "We're on the right trajectory to meet or exceed our Vision 2015 targets, and we're planting the right seeds today to ensure strong profitable growth well beyond 2015. We continue to evolve our portfolio, investing in current product lines and pursuing new ones. Over the next few years, we fully expect meaningful contributions from the new FMC Environmental Solutions business, from new natural colors and pectin product lines and from our expanding Agricultural Products portfolio," Brondeau added.
"Our growth through 2015 and beyond also will be driven by technology investments that support commercial success, continued expansion in fast-growing rapidly developing economies and our ongoing rebalancing of FMC's centralized/decentralized organizational model that leverages our size without compromising strong business accountability," Brondeau said.
Today's Investor Day event was webcast live over the internet. A replay of the webcast and a copy of today's presentations are available on the Investor Relations section of the company's website at www.fmc.com.
FMC Corporation is a diversified chemical company serving agricultural, industrial, environmental, and consumer markets globally for more than a century with innovative solutions, applications and quality products. In 2011, FMC had annual sales of approximately $3.4 billion. The company employs approximately 5,500 people throughout the world, and operates its businesses in three segments: Agricultural Products, Specialty Chemicals and Industrial Chemicals. For more information, visit www.FMC.com.
Safe Harbor Statement under the Private Securities Act of 1995: Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning specific factors described in FMC Corporation's 2011 Form 10-K and other SEC filings. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. FMC Corporation does not intend to update this information and disclaims any legal obligation to the contrary. Historical information is not necessarily indicative of future performance.
SOURCE FMC Corporation
In his session at DevOps Summit, Andrei Yurkevich, CTO at Altoros, provided an overview of all the benefits and opportunities, as well as drawbacks of deploying Cloud Foundry PaaS with Juju and compared it to BOSH. Discover the features that overlap, and understand what Juju Charm is, what it is not, where you use one or the other or where you use both BOSH and Juju Charms together. Andrei Yurkevich is Cloud Foundry protagonist and CTO at Altoros. Under his supervision, the Altoros engineering ...
May. 28, 2015 12:00 AM EDT Reads: 4,502
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
May. 27, 2015 11:00 PM EDT Reads: 5,997
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
May. 27, 2015 10:00 PM EDT Reads: 5,376
For better or worse, DevOps has gone mainstream. All doubt was removed when IBM and HP threw up their respective DevOps microsites. Where are we on the hype cycle? It's hard to say for sure but there's a feeling we're heading for the "Peak of Inflated Expectations." What does this mean for the enterprise? Should they avoid DevOps? Definitely not. Should they be cautious though? Absolutely. The truth is that DevOps and the enterprise are at best strange bedfellows. The movement has its roots in t...
May. 27, 2015 10:00 PM EDT Reads: 6,284
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of...
May. 27, 2015 09:00 PM EDT Reads: 6,390
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
May. 27, 2015 09:00 PM EDT Reads: 4,886
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device exp...
May. 27, 2015 09:00 PM EDT Reads: 5,995
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
May. 27, 2015 08:45 PM EDT Reads: 1,475
Some developers believe that monitoring is a function of the operations team. Some operations teams firmly believe that monitoring the systems they maintain is sufficient to run the business successfully. Most of them are wrong. The complexity of today's applications have gone far and beyond the capabilities of "traditional" system-level monitoring tools and approaches and requires much broader knowledge of business and applications as a whole. The goal of DevOps is to connect all aspects of app...
May. 27, 2015 08:00 PM EDT Reads: 4,790
DevOps is the hottest moving target when it comes to software development methodologies. Many people fear that this fast-paced, barrier-breaking movement will leave information security best practices in the dust. Analysts provide recommendations to security professionals using bingo-laden terms like "moving security to the left" or "get a seat at the table." What we need are real-world examples and tactics for security practitioners to be part of DevOps. In his session at DevOps Summit, Andrew...
May. 27, 2015 08:00 PM EDT Reads: 5,511
Containers Expo Blog covers the world of containers, as this lightweight alternative to virtual machines enables developers to work with identical dev environments and stacks. Containers Expo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Bookmark Containers Expo Blog ▸ Here Follow new article posts on Twitter at @ContainersExpo
May. 27, 2015 08:00 PM EDT Reads: 1,088
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
May. 27, 2015 07:00 PM EDT Reads: 4,593
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
May. 27, 2015 07:00 PM EDT Reads: 5,947
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
May. 27, 2015 06:45 PM EDT Reads: 1,314
Want to enable self-service provisioning of application environments in minutes that mirror production? Can you automatically provide rich data with code-level detail back to the developers when issues occur in production? In his session at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how to accomplish this and more utilizing technologies such as Microsoft Azure, Visual Studio online, and Application Insights in this demo-heavy session.
May. 27, 2015 06:00 PM EDT Reads: 5,335