FMC Corp (NYSE:FMC) announced on Friday that it is conducting a strategic review of its non-core assets, which includes the potential sale of its non-crop product line, Global Specialty Solutions.
The crop protection products maker has seen its earnings for most of the year hurt by a slowdown in demand for herbicides and pesticides.
"We expect 2024 to be a year of substantial cash generation driven by improved earnings and a release of working capital," FMC Corp Andrew Sandifer chief financial officer said in a statement.
"Over the next 18 to 24 months we anticipate significant free cash flow and a return to more normal leverage levels with a new average net leverage target of approximately 2 times adjusted EBITDA (earnings before interest, taxes, depreciation and amortization)," he added.
The company also provided a preliminary 2024 outlook, with a revenue forecast of $4.65 billion to $4.85 billion, in line with the analyst consensus estimate of $4.7 billion, along with adjusted EBITDA of $1.025 billion to $1.125 billion.
In addition, FMC outlined its three-year rolling financial goals that target revenue of $5.5 billion to $6.0 billion and adjusted EBITDA of $1.3 billion to $1.5 billion by 2026.
Furthermore, it revealed its 10-year revenue aspiration that includes about $2 billion from its Plant Health business and approximately $2 billion from four new active ingredients in its research and development (R&D) pipeline.
Shares of FMC edged 0.3% higher to $53.58 in early Friday trading but have fallen 57% year to date.
Contact Sean at sean@proactiveinvestors.com