Agri chemicals maker FMC looking to sell non-core assets

(Reuters) – Crop protection products maker FMC Corp has launched a strategic review of its non-core assets, including a potential sale of its non-crop business.

A slowdown in demand for herbicide and pesticides as well as excess inventories had resulted in large destocking in South America, denting the U.S.-based company’s earnings for much of the year.

The company also provided its preliminary 2024 revenue forecast on Thursday. FMC expects revenue in the range of $4.65 billion to $4.85 billion, compared with analysts’ estimate of $4.70 billion, according to LSEG data.

FMC expects 2026 revenue between $5.5 billion and $6 billion.

“As the company launches and ramps up new products, we see a clear path for adjusted EBITDA margins to recover to the mid-20% level, after falling to the low-20% level this year,” Morningstar analyst Seth Goldstein had said in a note.

(Reporting by Sourasis Bose in Bengaluru; Editing by Sriraj Kalluvila)