Stephen Simpson, CFA
Seeking Early Retirement
Thu, May 19, 11:48 AM
- A Monsanto (MON +4.9%) takeover by Bayer is considered "relatively unlikely" by Jefferies analyst Laurence Alexander, as he expects MON to object to the offer given its conviction in its R&D pipeline and longer-term competitive advantages.
- Alexander thinks shares of Syngenta (SYT -0.5%) and DuPont (DD -0.7%) could be pressured as regulatory scrutiny likely would intensify if MON gets acquired, and BASF (OTCQX:BASFY -1.4%) could fall on investor concerns of a potential counter-bid.
- But the analyst sees a potential MON takeover as positive for shares of Novozymes (OTCPK:NVZMY -0.1%) and FMC Corp. (FMC -0.7%), as "a further roll-up of 'specialty generic' agrichemical assets could entice capital, and FMC would be a plausible anchor for such an attempt."
- Jefferies rates MON as a Hold with a $95 price target.
- Now read Bayer investor "deeply concerned" about move for Monsanto
Nov. 16, 2015, 1:23 PM
- According to Bloomberg, Glenview's Larry Robbins - presenting at the Robin Hood conference - has pitched FMC Corp. (FMC +1.8%) as among his best ideas.
- The chemical maker is lower by nearly 37% since hitting its high for the year in early March.
- Previously from Robin Hood: Einhorn calls Consol Energy his "best idea," shares +4.3% (Nov. 16)
Oct. 13, 2015, 3:14 PM
- FMC Corp. (FMC -3.5%) shares maintain sizable losses after the chemicals company cut its full-year earnings forecast due to the sharp devaluation of the Brazilian real, which it says is cutting into the dollar value of its agricultural sales.
- FMC expects a weaker real to cut earnings at its Latin American business by $200M-$240M in H2 of this year.
- The "weak crop protection pricing environment in Brazil is a key additional risk for FMC that could be a source of more downside in coming quarters," Nomura analyst Aleksey Yefremov tells FT.
- WSJ's Justin Lahart says the news should not have come as a surprise after DuPont last week cut its outlook for the year, largely on troubles in its Brazilian business.
- However, Gabelli believes the share weakness creates a buying opportunity in FMC, saying the real appears to have stabilized, and management is taking aggressive actions to cut overall costs and resize the Brazil operation (Briefing.com).
Oct. 13, 2015, 9:16 AM
Oct. 12, 2015, 5:37 PM
Oct. 12, 2015, 5:20 PM
- FMC Corp. (NYSE:FMC) -11.3% AH after reducing the Q3 and FY 2015 outlook for its agricultural solutions segment, citing the rapid devaluation of the Brazilian real, which has depreciated more than 50% vs. the U.S. dollar in the past 12 months and more than 25% during Q3.
- FMC now sees Q3 adjusted EPS of $0.38 vs. $0.64 analyst consensus estimate, and full-year adjusted EPS of $2.35-$2.45 vs. $3.02 consensus.
- FMC also announces several steps to cut operating costs and reorganize operations in Brazil, including total headcount reductions of 800-850 positions, which the company expects to increase savings by mid-2017 to $140M-$160M vs. a prior target of $90M.
Sep. 18, 2015, 3:33 PM
- FMC Corp. (FMC -2.6%) is upgraded to Outperform from Market Perform with a $51 price target at Cowen, which sees better risk/reward at current valuations, and while ag markets remain, there is a “clear line of 20%-plus earnings growth” driven by synergies that will come with integrating its Cheminova acquisition.
- Cheminova is a major part of Cowen’s thesis, as the firm sees upside for synergies beyond the company’s $120M estimate; the integration remains well ahead of schedule, as management already has achieved 65% of planned headcount reductions and launched 25% of its procurement and 60% of its commercial revenue programs.
- FMC's specialty offerings combined with its increased scale and geographic diversity make it a Tier 1 provider, which allows it to better defend pricing and margins, the firm says.
Feb. 3, 2015, 9:41 AM
- Tronox (TROX +10.2%) is nearing a deal to buy the soda-ash business from rival chemical company FMC Corp. (FMC +1.8%) for more than $1.5B, with an announcement coming as soon as today, WSJ reports.
- FMC announced its intention to sell the alkali chemicals business in September when it agreed to acquire a pesticide business from Auriga Industries.
- TROX appears to have prevailed in the auction for the FMC unit over other chemical companies and P-E firms, according to the report.
Jun. 27, 2014, 8:16 AM
- DuPont (DD) -3.1% premarket after cutting its Q2 and FY 2014 earnings outlook, pointing to slower than expected sales growth in its agriculture and performance chemicals units.
- DD said in a conference call that it expects Q2 operating earnings in its agriculture business to fall in the low teens in percentage terms, with corn pricing in North America expected to be slightly lower than its previous estimate and returns of unused corn seeds in Brazil to be higher than anticipated.
- Dow Chemical (DOW) -0.7% premarket; chemical peers FMC, SYT, MON, LYB, CE and HUN also will be on watch today.
Jun. 23, 2014, 7:57 AM
- FMC Corp. (FMC) -2.3% premarket issues downside guidance for Q2 and FY 2014, as North American weather conditions that delayed Q1 sales persisted later into Q2 than expected, leading to reduced application of pre-emergent products.
- FMC sees adjusted EPS for the full year at $4.10-$4.30 vs. $4.35-$4.55 prior guidance and $4.44 analyst consensus estimate, and expects Q2 EPS of $0.95-$1.05 vs. $1.11 consensus.
- In addition to weather factors, FMC says drought conditions that dragged down sugarcane sales in Brazil continued through Q2, leading to growers cutting back in use of crop protection products such as herbicides and insecticides, and a fall in replanting rates.
Mar. 18, 2014, 9:15 AM
- FMC Corp. (FMC) -2.1% premarket after saying harsh winter weather in North America is leading to a later than usual demand pattern for its crop protection products, which will lower Q1 operating profit for its agricultural solutions segment by mid-20's % Y/Y.
- However, overall FY 2014 outlook for the segment remains unchanged, with expectations for a mid-10's percent growth in revenues and operating profits.
Mar. 11, 2014, 12:42 PM
- FMC Corp.'s (FMC -2.3%) decision to split its agriculture and pharmaceutical businesses from stodgier commodity minerals to create a more valuable company will make it harder for Dow Chemical (DOW -0.6%) CEO Andrew Liveris to resist activist pressure to do the same, DealBook's Kevin Allison writes.
- The story views some parallels between the two companies, despite the size difference: Both have specialty chemical businesses and trade below their best-performing peers.
- A crucial plank in DOW’s defense is that the company benefits from an integrated supply chain, with commodity petrochemicals often serving as building blocks for higher-margin specialty products; still, it’s tougher to argue against a breakup when a rival with similar growth businesses is doing the same, Allison believes.
Feb. 6, 2013, 4:38 PMFMC Corp (FMC): Q4 EPS of $0.81 in-line. Revenue of $1.0B (+10% Y/Y) misses by $0.01B. Shares -2.5% AH. (PR) | Feb. 6, 2013, 4:38 PM
Dec. 12, 2012, 5:37 PM
Dec. 12, 2012, 3:57 PM
FMC Corp. (FMC +4.8%) says it expects to exceed $5B in sales by 2015, exceeding its earlier revenue goal by at least 10% and representing more than twice the chemical company's 2009 revenue. KeyBanc believes FMC is an attractive mid-cap growth story; the firm raises its 2013 earnings forecasts based on those expectations and hikes its price target to $71 from $67. (also)| Dec. 12, 2012, 3:57 PM
Feb. 21, 2012, 2:20 PM