FMC Corporation aims to be a global leader in agricultural, health and nutrition sectors. It is already a major supplier in synthetic chemicals (for health & nutrition) and crop protection products (focused on plant nutrition and seed treatment). FMC has taken major steps over past five years. Some of them are:
1. Creating a focused portfolio: Rationalized through series of mergers and acquisitions
2. Going towards Demand Centers: More than half of FMC sales are from rapidly developing economies
3. Product Innovation: 20 technology-focused acquisitions/alliances
75% of FMC revenues are from Agricultural solutions (54%) and Health & Nutrition products (21%). We see that this ratio will be further skewed towards Agricultural solutions (76%) …show more content…
It is expected to grow at the rate of 3.2% from 2015 – 2020 to reach the market size of $250.5 Bn. Herbicides, Insecticides and Fungicides represent 40%, 20% & 20% of global industry revenue respectively. These key product lines also form FMC’s Agricultural solutions portfolio. 88% of FMC’s agricultural business comes from the Americas. The business dynamics of Agricultural Solutions are influenced by FMC’s customers (Growers) - their requirements and pain points. Weather significantly impacts growers and agrochemical sales. There are few noticeable observations, influencing Agricultural solutions business. In 2014, Extreme cold during traditional planting time in North America reduced insecticide usage while Brazil and India faced a drought. In Thailand, the government’s removal of rice subsidies caused a drop in plantings. Agrichemical sales can be hugely impacted by draught in Latin America and Indian sub-continent scenario (revenue split by Geos - …show more content…
It is probable due to an obsolete technology or higher depreciation values from older machines. This again loops back to the need to invest more in operations. It is a crucial to break-free from the above loop. Over the past 2 years, RoA for FMC Corp has declined to 6% while it was consistent at 10% for the years before. FMC can better itself and reach back the benchmark that it had set. FMC has grown with many acquisitions and acquired multiple assets that need to be harmonized in generating profits. It can benefit through the initiative of OEE – Overall Equipment
1. Creating a focused portfolio: Rationalized through series of mergers and acquisitions
2. Going towards Demand Centers: More than half of FMC sales are from rapidly developing economies
3. Product Innovation: 20 technology-focused acquisitions/alliances
75% of FMC revenues are from Agricultural solutions (54%) and Health & Nutrition products (21%). We see that this ratio will be further skewed towards Agricultural solutions (76%) …show more content…
It is expected to grow at the rate of 3.2% from 2015 – 2020 to reach the market size of $250.5 Bn. Herbicides, Insecticides and Fungicides represent 40%, 20% & 20% of global industry revenue respectively. These key product lines also form FMC’s Agricultural solutions portfolio. 88% of FMC’s agricultural business comes from the Americas. The business dynamics of Agricultural Solutions are influenced by FMC’s customers (Growers) - their requirements and pain points. Weather significantly impacts growers and agrochemical sales. There are few noticeable observations, influencing Agricultural solutions business. In 2014, Extreme cold during traditional planting time in North America reduced insecticide usage while Brazil and India faced a drought. In Thailand, the government’s removal of rice subsidies caused a drop in plantings. Agrichemical sales can be hugely impacted by draught in Latin America and Indian sub-continent scenario (revenue split by Geos - …show more content…
It is probable due to an obsolete technology or higher depreciation values from older machines. This again loops back to the need to invest more in operations. It is a crucial to break-free from the above loop. Over the past 2 years, RoA for FMC Corp has declined to 6% while it was consistent at 10% for the years before. FMC can better itself and reach back the benchmark that it had set. FMC has grown with many acquisitions and acquired multiple assets that need to be harmonized in generating profits. It can benefit through the initiative of OEE – Overall Equipment