FMC Corporation Raises Full-Year 2020 Guidance Following a Solid Second Quarter Result

*

Guidance refers to EPS guidance presented on May 5, 2020 of $1.58 to $1.74

**

Contributing factors do not sum to 6 cents, due to rounding

Full Year Outlook

 Q4 2020 Outlook

Revenue

$4.68 to $4.82 billion

$1.045 to $1.105 billion

$1.23 to $1.31 billion

Organic Growth

9%

12%

11%

Estimated FX Impact

(6%)

(5%)

Growth at midpoint vs.
2019

3%

6%

6%

Adjusted EBITDA

$1.265 to $1.325 billion

$233 to $257 million

$335 to $371 million

Growth at midpoint vs.
2019

6%

12%

10%

Adjusted EPS^

$6.28 to $6.62

$1.03 to $1.17

$1.71 to $1.91

Growth at midpoint vs.
2019

6%

17%

3%*

^

EPS estimates assume 131 million diluted shares.

*

Q4 2019 adjusted EPS benefited from a large tax adjustment.

1.

Organic revenue growth (non-GAAP) excludes the impact of foreign currency changes.

2.

Although we provide forecasts for adjusted earnings per share and adjusted EBITDA (non-

GAAP financial measures), we are not able to forecast the most directly comparable measures

calculated and presented in accordance with GAAP. Certain elements of the composition of

the GAAP amounts are not predictable, making it impractical for us to forecast. Such elements

include, but are not limited to, restructuring, acquisition charges, and discontinued operations.

As a result, no GAAP outlook is provided.

FMC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited, in millions, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Revenue

$

1,155.3

$

1,206.1

$

2,405.3

$

2,398.2

Costs of sales and services

632.6

655.6

1,321.1

1,303.0

Gross margin

$

522.7

$

550.5

$

1,084.2

$

1,095.2

Selling, general and administrative expenses

171.0

196.9

360.4

380.8

Research and development expenses

64.3

73.1

131.6

144.3

Restructuring and other charges (income)

19.5

12.7

32.9

20.5

Total costs and expenses

$

887.4

$

938.3

$

1,846.0

$

1,848.6

Income from continuing operations before non-operating
pension and postretirement charges (income), interest
expense, net and income taxes

$

267.9

$

267.8

$

559.3

$

549.6

Non-operating pension and postretirement charges (income)

2.2

3.3

4.4

6.7

Interest expense, net

40.7

39.5

81.5

74.0

Income (loss) from continuing operations before income
taxes

$

225.0

$

225.0

$

473.4

$

468.9

Provision (benefit) for income taxes

29.2

30.6

63.9

66.9

Income (loss) from continuing operations

$

195.8

$

194.4

$

409.5

$

402.0

Discontinued operations, net of income taxes

(10.8)

(18.1)

(18.3)

(8.5)

Net income (loss)

$

185.0

$

176.3

$

391.2

$

393.5

Less: Net income (loss) attributable to noncontrolling
interests

0.6

1.8

0.6

3.3

Net income (loss) attributable to FMC stockholders

$

184.4

$

174.5

$

390.6

$

390.2

Amounts attributable to FMC stockholders:

  Income (loss) from continuing operations

$

195.2

$

192.6

$

408.9

$

398.7

  Discontinued operations, net of tax

(10.8)

(18.1)

(18.3)

(8.5)

  Net income (loss)

$

184.4

$

174.5

$

390.6

$

390.2

Basic earnings (loss) per common share attributable to
FMC stockholders:

  Continuing operations

$

1.50

$

1.46

$

3.15

$

3.02

  Discontinued operations

(0.08)

(0.14)

(0.14)

(0.06)

  Basic earnings per common share

$

1.42

$

1.32

$

3.01

$

2.96

Average number of shares outstanding used in basic
earnings per share computations

129.7

131.1

129.6

131.4

Diluted earnings (loss) per common share attributable to
FMC stockholders:

Continuing operations

$

1.49

$

1.46

$

3.13

$

3.00

    Discontinued operations

(0.08)

(0.14)

(0.14)

(0.06)

  Diluted earnings per common share

$

1.41

$

1.32

$

2.99

$

2.94

Average number of shares outstanding used in diluted
earnings per share computations

130.6

132.3

130.5

132.7

Other Data:

Capital additions and other investing activities

$

19.2

$

15.6

$

43.8

$

36.4

Depreciation and amortization expense

40.1

37.2

79.2

74.5

FMC CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP) TO
ADJUSTED AFTER-TAX EARNINGS FROM CONTINUING OPERATIONS, ATTRIBUTABLE TO FMC
STOCKHOLDERS (NON-GAAP)
(Unaudited, in millions, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Net income (loss) attributable to FMC stockholders (GAAP)

$

184.4

$

174.5

$

390.6

$

390.2

Corporate special charges (income):

Restructuring and other charges (income) ^(a)

19.5

12.7

32.9

20.5

Non-operating pension and postretirement charges (income) ^(b)

2.2

3.3

4.4

6.7

Transaction-related charges ^(c)

13.0

20.1

26.0

36.6

Income tax expense (benefit) on Corporate special charges (income) ^(d)

(5.9)

(7.1)

(10.8)

(12.8)

Discontinued operations attributable to FMC stockholders, net of
income taxes ^(e)

10.8

18.1

18.3

8.5

Tax adjustment ^(f)

?

(1.4)

2.2

(0.2)

Adjusted after-tax earnings from continuing operations
attributable to FMC stockholders (Non-GAAP) ⁽¹⁾

$

224.0

$

220.2

$

463.6

$

449.5

Diluted earnings per common share (GAAP)

$

1.41

$

1.32

$

2.99

$

2.94

Corporate special charges (income) per diluted share, before tax:

Restructuring and other charges (income)

0.15

0.10

0.25

0.16

Non-operating pension and postretirement charges (income)

0.02

0.02

0.03

0.05

Transaction-related charges

0.10

0.15

0.20

0.28

Income tax expense (benefit) on Corporate special charges (income), per diluted share

(0.04)

(0.06)

(0.08)

(0.10)

Discontinued operations attributable to FMC stockholders, net of
income taxes per diluted share

0.08

0.14

0.14

0.06

Tax adjustments per diluted share

?

(0.01)

0.02

?

Diluted adjusted after-tax earnings from continuing
operations per share, attributable to FMC stockholders (Non-GAAP)

$

1.72

$

1.66

$

3.55

$

3.39

Average number of shares outstanding used in diluted adjusted
after-tax earnings from continuing operations per share
computations

130.6

132.3

130.5

132.7

____________________

(1)

The Company believes that the Non-GAAP financial measure "Adjusted after-tax earnings from continuing operations attributable
to FMC stockholders" and its presentation on a per share basis provides useful information about the Company's operating results
to management, investors, and securities analysts. Adjusted earnings excludes the effects of corporate special charges, tax-related
adjustments and the results of our discontinued operations. The Company also believes that excluding the effects of these items from
operating results allows management and investors to compare more easily the financial performance of its underlying business from
period to period.

(a)

Three Months Ended June 30, 2020:

Restructuring and other charges (income) is comprised of charges associated with the integration of the DuPont Crop Protection Business.
These charges include severance, accelerated depreciation on certain fixed assets, and other costs of $16.2 million. The remaining restructuring
and other charges (income) includes charges of environmental sites of $3.3 million.

Three Months Ended June 30, 2019:

Restructuring and other charges (income) is primarily comprised of charges associated with the integration of the DuPont Crop Protection
Business. These charges include severance, accelerated depreciation on certain fixed assets, and other costs (benefits) of $4.1 million.
Additionally, restructuring and other charges (income) includes charges of continuing environmental sites treated as a Corporate charge of
$5.6 million and other miscellaneous restructuring charges totaling $3.0 million.

Six Months Ended June 30, 2020:

Restructuring and other charges (income) is primarily comprised of charges associated with the integration of the DuPont Crop Protection
Business. These charges include severance, accelerated depreciation on certain fixed assets, and other costs of $23.2 million. The remaining
restructuring and other charges (income) primarily includes charges of environmental sites of $9.7 million.

Six Months Ended June 30, 2019:

Restructuring and other charges (income) is primarily comprised of charges associated with the integration of the DuPont Crop Protection
Business. These charges include severance, accelerated depreciation on certain fixed assets, and other costs (benefits) of $8.0 million.
Additionally, restructuring and other charges (income) includes charges of environmental sites of $8.2 million and other miscellaneous
restructuring charges totaling $4.3 million.

(b)

Our non-operating pension and postretirement charges (income) are defined as those costs (benefits) related to interest, expected return
on plan assets, amortized actuarial gains and losses and the impacts of any plan curtailments or settlements. These are excluded from our
Adjusted Earnings and are primarily related to changes in pension plan assets and liabilities which are tied to financial market performance
and we consider these costs to be outside our operational performance. We continue to include the service cost and amortization of prior service
cost in our Adjusted Earnings results noted above. These elements reflect the current year operating costs to our businesses for the employment
benefits provided to active employees.

(c)

Charges related to legal and professional fees associated with acquisition activities. Except for the completion of certain in-flight initiatives, primarily
associated with the finalization of our worldwide ERP system, we have completed the integration of the DuPont Crop Protection Business as of
June 30, 2020. The transition services agreement is now terminated and we have completed a significant portion of the implementation of the new
ERP system. The last phase of the ERP system transition is expected to take place on November 1, 2020 with a stabilization period that will go into
the first quarter of 2021. We anticipate remaining expense of approximately $30 million to $35 million for the completion of these defined in-flight initiatives
during the remaining time period.

Three Months Ended June 30,

Six Months Ended June 30,

(in Millions)

2020

2019

2020

2019

DuPont Crop Protection Business Acquisition

Legal and professional fees ⁽¹⁾

$

13.0

$

20.1

$

26.0

$

36.6

Total Transaction-related charges

$

13.0

$

20.1

$

26.0

$

36.6

____________________

(1)

Represents transaction costs, costs for transitional employees, other acquired employees related costs, and transactional-
related costs such as legal and professional third-party fees. These charges are recorded as a component of "Selling,
general and administrative expense" on the condensed consolidated statements of income (loss).

(d)

The income tax expense (benefit) on Corporate special charges (income) is determined using the applicable rates in the
taxing jurisdictions in which the corporate special charge or income occurred and includes both current and deferred income
tax expense (benefit) based on the nature of the non-GAAP performance measure.

(e)

Three and Six Months Ended June 30, 2020 and 2019

Discontinued operations, net of income taxes include, in periods up to its separation on March 1, 2019, the results of FMC
Lithium, including separation-related costs, as well as provisions, net of recoveries, for environmental liabilities and legal
reserves and expenses related to previously discontinued operations. During the six months ended June 30, 2019, we finalized
the sale of the first of two parcels of land of our discontinued site in Newark, California. The gain on sale was approximately
$21 million, net of tax, and was partially offset by the results of our FMC Lithium business, which was a net loss due to
separation-related costs. These events did not recur in the current period.

(f)

 We exclude the GAAP tax provision, including discrete items, from the Non-GAAP measure of income, and include a
Non-GAAP tax provision based upon the projected annual Non-GAAP effective tax rate. The GAAP tax provision includes
certain discrete tax items including, but are not limited to: income tax expenses or benefits that are not related to continuing
operating results in the current year; tax adjustments associated with fluctuations in foreign currency remeasurement of certain
foreign operations; certain changes in estimates of tax matters related to prior fiscal years; certain changes in the realizability of
deferred tax assets and related interim accounting impacts; and changes in tax law. Management believes excluding these
discrete tax items assists investors and securities analysts in understanding the tax provision and the effective tax rate related to
continuing operating results thereby providing investors with useful supplemental information about FMC's operational performance.

Three Months Ended June 30,

Six Months Ended June 30,

(in Millions)

2020

2019

2020

2019

Non-GAAP tax adjustments

Revisions to valuation allowances of historical deferred
tax assets

?

0.2

$

(0.4)

$

0.6

Foreign currency remeasurement and other discrete items

?

(1.6)

2.6

(0.8)

Total Non-GAAP tax adjustments

$

?

$

(1.4)

$

2.2

$

(0.2)

RECONCILIATION OF NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM CONTINUING
OPERATIONS, BEFORE INTEREST, INCOME TAXES, DEPRECIATION AND AMORTIZATION, AND
NONCONTROLLING INTERESTS (NON-GAAP)
(Unaudited, in millions)

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Net income (loss) (GAAP)

$

185.0

$

176.3

$

391.2

$

393.5

Restructuring and other charges (income)

19.5

12.7

32.9

20.5

Non-operating pension and postretirement charges (income)

2.2

3.3

4.4

6.7

Transaction-related charges

13.0

20.1

26.0

36.6

Discontinued operations, net of income taxes

10.8

18.1

18.3

8.5

Interest expense, net

40.7

39.5

81.5

74.0

Depreciation and amortization

40.1

37.2

79.2

74.5

Provision (benefit) for income taxes

29.2

30.6

63.9

66.9

Adjusted earnings from continuing operations, before interest,
income taxes, depreciation and amortization, and
noncontrolling interests (Non-GAAP) ⁽¹⁾

$

340.5

$

337.8

$

697.4

$

681.2

___________________

(1)

Referred to as Adjusted EBITDA. Defined as operating profit excluding corporate special charges (income) and depreciation and
amortization expense.

RECONCILIATION OF CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES OF
CONTINUING OPERATIONS (GAAP) TO FREE CASH FLOW (NON-GAAP)
(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(In Millions)

2020

2019

2020

2019

Cash provided (required) by operating activities of continuing
operations (GAAP)⁽¹⁾

$

260.5

$

66.1

$

(48.4)

$

(216.8)

Transaction and integration costs

17.0

23.2

39.5

43.1

Adjusted cash from operations ⁽²⁾

$

277.5

$

89.3

$

(8.9)

$

(173.7)

Capital expenditures

(7.7)

(16.4)

(23.2)

(35.5)

Other investing activities

(11.5)

0.8

(20.6)

(0.9)

Capital additions and other investing activities

$

(19.2)

$

(15.6)

$

(43.8)

$

(36.4)

Cash provided (required) by operating activities of discontinued
operations

(25.9)

(14.4)

(45.3)

(8.7)

Cash provided (required) by investing activities of discontinued
operations

1.1

?

1.1

9.2

Transaction and integration costs

(17.0)

(23.2)

(39.5)

(43.1)

Investment in Enterprise Resource Planning system

(12.0)

(14.1)

(30.6)

(26.7)

Legacy and transformation

$

(53.8)

$

(51.7)

$

(114.3)

$

(69.3)

Free cash flow (Non-GAAP) ⁽³⁾

$

204.5

$

22.0

$

(167.0)

$

(279.4)

___________________

(1)

The cash provided (required) by operating activities for the three months ended June 30, 2020 and 2019 is the calculation of the six
months ended June 30, 2020 and 2019 less the previously reported three months ended March 31, 2020 and 2019, respectively.

(2)

 Adjusted cash from operations is defined as cash provided (required) by operating activities of continuing operations excluding
the effects of transaction-related cash flows.

(3)

Free cash flow is defined as Adjusted cash from operations reduced by spending for capital additions and other investing activities
as well as legacy and transformation spending. We believe that this Non-GAAP financial measure provides a useful basis for investors
and securities analysts about the cash generated by routine business operations, including capital expenditures, in addition to assessing
our ability to repay debt, fund acquisitions and return capital to shareholders through share repurchases and dividends. Our use of free cash
flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results under U.S. GAAP.

RECONCILIATION OF REVENUE CHANGE (GAAP) TO
ORGANIC REVENUE CHANGE (NON-GAAP) ⁽¹⁾
(Unaudited)

Three Months Ended
June 30, 2020 vs. 2019

Six Months Ended
June 30, 2020 vs. 2019

Total Revenue Change (GAAP)

(4)

%

?

%

Less: Foreign Currency Impact

(7)

%

(6)

%

Organic Revenue Change (Non-GAAP)

3

%

6

%

Full Year Outlook

Q3 2020 Outlook

Q4 2020 Outlook

Projected Total Revenue Change at Midpoint (GAAP)

3

%

6

%

6

%

Less: Estimated Foreign Currency Impact

(6)

%

(6)

%

(5)

%

Projected Organic Revenue Change (Non-GAAP)

9

%

12

%

11

%

___________________

(1)

We believe organic revenue growth (non-GAAP) provides management and investors with useful supplemental information
regarding our ongoing revenue performance and trends by presenting revenue growth excluding the impact of fluctuations in
foreign exchange rates.

FMC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in millions)

June 30, 2020

December 31, 2019

Cash and cash equivalents

$

342.7

$

339.1

Trade receivables, net of allowance of $24.8 in 2020 and $26.3 in 2019

2,342.4

2,231.2

Inventories

1,138.5

1,017.0

Prepaid and other current assets

464.6

487.5

Total current assets

$

4,288.2

$

4,074.8

Property, plant and equipment, net

733.8

758.0

Goodwill

1,460.7

1,467.5

Other intangibles, net

2,603.9

2,629.0

Deferred income taxes

249.6

257.4

Other long-term assets

657.5

686.0

Total assets

$

9,993.7

$

9,872.7

Short-term debt and current portion of long-term debt

$

505.9

$

227.7

Accounts payable, trade and other

842.2

900.1

Advanced payments from customers

7.0

492.7

Accrued and other liabilities

632.2

680.6

Accrued customer rebates

489.5

280.6

Guarantees of vendor financing

108.6

75.7

Accrued pensions and other postretirement benefits, current

4.3

4.3

Income taxes

93.2

62.2

Total current liabilities

$

2,682.9

$

2,723.9

Long-term debt, less current portion

$

3,027.5

$

3,031.1

Long-term liabilities

1,432.4

1,556.3

Equity

2,850.9

2,561.4

Total liabilities and equity

$

9,993.7

$

9,872.7

FMC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)

Six Months Ended June 30,

2020

2019

Cash provided (required) by operating activities of continuing operations

$

(48.4)

$

(216.8)

Cash provided (required) by operating activities of discontinued operations

(45.3)

(8.7)

Cash provided (required) by investing activities of continuing operations

(74.4)

(63.1)

Cash provided (required) by investing activities of discontinued operations

1.1

9.2

Cash provided (required) by financing activities of continuing operations

174.9

239.1

Cash provided (required) by financing activities of discontinued operations

?

(37.2)

Effect of exchange rate changes on cash

(4.3)

(0.8)

Increase (decrease) in cash and cash equivalents

$

3.6

$

(78.3)

Cash and cash equivalents of continuing operations, beginning of period

$

339.1

$

134.4

Cash and cash equivalents of discontinued operations

?

27.3

Cash and cash equivalents, beginning of period

$

339.1

$

161.7

Cash and cash equivalents, end of period

$

342.7

$

83.4