Specialty chemical provider FMC declares Q2 results
08 Aug '05
6 min read
Revenue in Industrial Chemicals was $439.9, an increase of 10 percent versus the prior-year period. The soda ash business accounted for the majority of the increase due to significant improvements in both domestic and export soda ash selling prices. Foret also benefited from higher selling prices, as well as favorable foreign currency translation. Segment earnings of $46.1 million increased substantially versus $17.7 million in the year- earlier period, driven by significantly higher domestic and export soda ash selling prices, offset in part by higher raw material, transportation and energy costs.
Corporate expense of $22.3 million was up from $19.1 million in the year- earlier period. Interest expense, net, was $34.0 million, down from $41.0 million in the prior-year period due to lower interest rates and debt levels. For the period, depreciation and amortization was $70.1 million, and capital expenditures were $36.6 million.
Outlook
Regarding outlook and guidance for 2005, Walter said: "With their strong first half performance, they have raised full-year outlook for earnings, before restructuring and other income and charges, to $4.30-$4.40 per diluted share. This implies an outlook for the remainder of 2005 that is largely unchanged from previous outlook."
Walter added: "For the third quarter of 2005, they expect earnings before restructuring and other income and charges of between $0.80 and $0.90 per diluted share. The primary drivers of earnings are expected to be higher domestic and export soda ash selling prices and the benefit of reduced interest expense, partially offset by costs associated with the startup of their Granger, Wyo., soda ash facility and planned maintenance shutdowns at Specialty Chemicals and Industrial Chemicals facilities."
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