TORONTO (miningweekly.com) – US chemical manufacturer FMC Corp has reported a 15% year-on-year decline in the third-quarter revenue of its lithium business segment, as “encouraging” demand and pricing trends across the portfolio were negatively impacted by inflation in Argentina.
Subsidiary FMC Lithium reported revenue of $57-million for the quarter ended September, and third-quarter segment earnings of about $2-million, a decline of $3.5-million when compared with the third quarter of 2014.
Sales volumes declined owing to lower third-party carbonate supply and the timing of the maintenance outage for the lithium hydroxide unit in Bessemer City, North Carolina. Operating efficiencies partially offset Argentina inflation, currency impacts and manufacturing costs from previous periods.
FMC stated that demand for lithium remained strong and pricing trends continued to be favourable. The company had recently raised prices on its lithium products by 15%.
The company expected strategic third-party sourcing agreements for lithium carbonate and the completion of third-quarter maintenance shutdowns to deliver significantly higher sequential sales volumes in the fourth quarter.
Meanwhile, recently implemented cost savings projects would also begin to have a greater impact towards year-end.
FMC expected segment earnings to be between $4-million and $6-million for the fourth quarter and between $16-million and $18-million for the full year.
On a consolidated basis, FMC reported a net loss of $2.4-million, or a loss of $0.02 a diluted share, compared with net income of $56-million, or $0.42 a share, in the third quarter of 2014.
Excluding certain gains and charges related to exiting certain businesses and various restructuring charges, adjusted earnings were $0.42 a diluted share, as compared with the prior-year quarter adjusted earnings of $0.72 per diluted share. Adjusted earnings beat analyst expectations of $0.38 a share.
FMC’s NYSE-listed equity had lost almost 29% in value since the start of the year, but on Monday closed 1.15% higher at $41.18 apiece.