FMC Corp.'s (FMC) second-quarter profit grew 63% on higher sales for agricultural products and specialty chemicals, as the chemicals company Monday reported demand was particularly strong in rapidly developing economies.
But a weak outlook for the current quarter sent shares down 2.1% to $86.47 after-hours.
The company, which makes such products as insecticide and hydrogen peroxide, also raised the lower end of its full-year outlook by 10 cents, now seeing a profit of $5.60 to $5.80. FMC also predicted third-quarter earnings of $1.25 to $1.40 a share, compared with the $1.41 profit forecast by analysts surveyed by Thomson Reuters.
FMC's adjusted earnings have beaten expectations lately on broad growth. FMC also outperformed rivals during the recession because of its relatively low exposure to the industrial-chemicals sector, a market that struggles when the economy is pressured.
The company reported earnings of $107.2 million, or $1.49 a share, up from $65.7 million, or 90 cents a share, a year earlier. Excluding restructuring and other impacts, earnings climbed to $1.53 from $1.30. In May, the company projected a profit of $1.40 to $1.55.
Revenue grew 4.6% to $812.2 million. Analysts most recently expected $811 million.
Gross margin widened to 36.8% from 34.1%.
Pretax profit from continuing operations at FMC's largest business, agricultural products, increased 18% on a 12% jump in sales. Industrial chemicals profit was up 21%, while the figure improved 8.7% for specialty chemicals.
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