Agricultural Science Company FMC's 'Project Focus' Aims To Harvest ~$150M Savings In Global Restructuring & More

Zinger Key Points
  • FMC launches global restructuring plan to address challenges in the crop protection market downturn.
  • The company aims for $150M or more annual savings by 2025, with a $50M-$75M boost to adjusted EBITDA in 2024.

FMC Corp FMC initiated a global restructuring plan known as "Project Focus" amid an unprecedented global crop protection market downturn that resulted in severe channel destocking.

RelatedAgricultural Science Company FMC Pressured From Worst Supply Chain Correction: Analyst

The program aims to streamline the cost base and optimize the footprint and organizational structure, focusing on driving significant cost improvement and productivity. 

Through Project Focus, the company expects to deliver contributions of $50 million-$75 million to adjusted EBITDA in 2024. 

Once fully implemented, the company is targeting an annual run-rate savings of $150 million or more from the program by the end of 2025.

The company expects to incur pre-tax restructuring charges as well as consulting and other professional service fees.  

FMC launched a voluntary separation program in select jurisdictions and disclosed workforce reduction in its Brazilian business. 

The company estimates severance charges and other costs for initial actions already underway through Project Focus to be $20 million to $40 million.

Last month, FMC announced a strategic review of non-core assets, which includes the potential sale of its non-crop product line, Global Specialty Solutions.

Also ReadAgricultural Science Company FMC Outlines Strategic Growth Plan & Financial Targets: Here's Details

Price Action: FMC shares closed lower by 1.04% at $58.89 on Monday.

Photo via Company

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EquitiesLarge CapNewsGuidanceMarketsBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!