Analyst Note| Seth Goldstein, CFA |
FMC's first-quarter results showed a tough start to the year as adjusted EBITDA was down 14% year on year due to lower volumes in the Latin America and EMEA regions. In Latin America, the declines were driven by management's decision to reduce sales volumes to distributors in light of the delayed planting season due to weather. Similarly, lower sales volumes in EMEA were weather-driven as well. We expect the company will be able to make up much of the lower volumes throughout the rest of the year. Having updated our model to incorporate first-quarter results, we maintain our $110 per share fair value estimate for FMC. Our narrow-moat rating is also unchanged.