MIRA
INFORM REPORT
|
Report Date : |
29th
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
FMC CORPORATION |
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Registered Office : |
1735
Market Street, Philadelphia Pennsylvania,
19103 United States |
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Country : |
United States |
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Date of Incorporation : |
10/08/1928 |
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Legal Form : |
Corporation - Public |
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Line of Business : |
Subject is a global chemical company providing
solutions, applications and products to a wide variety of end markets |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
IDENTIFICATION & EXECUTIVE SUMMARY
Company
Name: FMC CORPORATION
Address: 1735
Market Street
City: Philadelphia
State/Province: PENNSYLVANIA
Zip
Code: 19103
Country: UNITED
STATES
Telephone: 215
299-6000
Facsimile: 215
299-5998
Legal
Form: Corporation - Public
Website: www.fmc.com
Maj.
Shareholder: FMR Corp
@rating
Opinion:
In
KUSD As of: 31/12/2005
Sales
/ Revenue: 2,150,200
Net
Income: 116,600
Total
Equity: 959,300
Number
of Employees: 5,000
Business
Activity:
The
Subject is a global chemical company providing solutions, applications and
products to a wide variety of end markets.
NOTE TO CLIENT
REGARDING
A REQUEST FOR FMC CORPORATION LITHIUM DIVISION, PLEASE BE ADVISED THAT THIS IS
A DIVISION OF FMC CORPORATION, FOR WHICH A REPORT FOLLOWS.
The
following address was confirmed to be that of the Subjects Lithium Division:
Highway 161, Bessemer City, NC, 28016. The heading address is that of the
corporate headquarters.
LEGAL
Legal
Form: Corporation - Public
Since
(D/M/Y): 10/08/1928
State/Province
of Incorporation: DE
Status:
ACTIVE
Previous
Legal Form:
Company
is required to publish an annual financial report.
Delaware
registration:
File
Number: 0241301
Incorporation
Date / Formation Date: 08/10/1928
Entity
Name: FMC CORPORATION
Entity
Kind: CORPORATION Entity Type: GENERAL
Residency:
DOMESTIC State: DE
REGISTERED
AGENT INFORMATION
Name:
THE CORPORATION TRUST COMPANY
Address:
CORPORATION TRUST CENTER 1209 ORANGE STREET
City:
WILMINGTON County: NEW CASTLE
State:
DE Postal Code: 19801
Phone:
(302)658-7581
The
Subject is qualified in Pennsylvania under the following registration:
Entity
Type FOREIGN BUSINESS CORPORATION
Entity
Name FMC CORPORATION
Entity
No. 115799
Filing
Date 09/21/1948 Letter of Consent No
Address
C/O C T CORPORATION SYSTEM,1635 MARKET STREET
PHILADELPHIA Pennsylvania USA 19103
County
Philadelphia Jurisdiction DE
Purpose -
Limited
Authority No
The
Subject is qualified in North Carolina under the following registration:
Name Name Type
Fmc
Corporation Legal
Food
Machinery and Chemical Corporation Prev Legal
Business
Corporation Information
SOSID:
0049919
FID: 561995218
Status:
Current-Active
Date
Formed: 1/3/1955
Citizenship:
Foreign
State
of Inc.: DE
Duration: Perpetual
Registered
Agent
Agent
Name: C T Corporation System
Registered
Office Address: 225 Hillsborough Street
Raleigh
NC 27603
Registered
Mailing Address: 225 Hillsborough Street
Raleigh
NC 27603
Principal
Office Address: 1735 Market Street
Philadelphia
PA 19103
Principal
Mailing Address: No Address
Stock
Class Shares No Par Value Par
Value
99
SEE CERT 0 0
The
Subject is publicly traded on the New York Stock Exchange under the symbol FMC.
The recent trading price of the stock is $ 62.12 with a 52 week range between $
48.19 and $ 66.69. There are approximately 39,106,000 shares outstanding.
Managers/Key Personnel
Mr.
William G. Walter Chairman,
President & CEO
Mr.
W. Kim Foster Chief Financial Officer
Mr.
Graham R. Wood Controller
Ms.
Andrea E. Utecht Vice President
Mr.
Kenneth R. Garrett Vice President
OWNERS
FMR
Corp
14.80% Shareholder
FMC
Corporation Savings and Investm
6.70 Shareholder
Name
of Subsidiary State or Country
of Incorporation
----------------------------------------------------------------------
Electro
Quimica Mexicana, S.A. de C.V.
Mexico
FMC
A/S
Denmark
FMC
Agricultural Products International, AG
Switzerland
FMC
Agroquimica de Mexico S.A. de C.V.
Mexico
FMC
Asia Pacific Inc.
Delaware
FMC
BioPolymer AS
Norway
FMC
BioPolymer Germany G.m.b.H.
Germany
FMC
BioPolymer France SAS
France
FMC
Chemicals Netherlands BV
Netherlands
FMC
Chemical International, AG
Ireland
FMC
Chemical International, AG
Switzerland
FMC
Chemicals (Malaysia) Sdn. Bhd.
Malaysia
FMC
(Chemicals) Pty. Ltd.
Australia
FMC
Chemicals (Thailand) Limited
Thailand
FMC
Chemicals Italy srl.
Italy
FMC
Chemicals KK
Japan
FMC
Chemicals Limited United Kingdom
FMC
Chemical S.p.r.l.
Belgium
FMC
de Mexico, S.A. de C.V.
Mexico
FMC
Defense Corporation
Wyoming
FMC
Finance B.V. Netherlands
FMC
Foret, S.A.
Spain
FMC
France SAS
France
FMC
Funding Corporation
Delaware
FMC
Germany G.m.b.H.
Germany
FMC
Korea Ltd.
Korea
FMC
of Canada Limited
Canada
FMC
Overseas, Ltd.
Delaware
FMC
Quimica do Brasil Limitada
Brazil
FMC
Singapore Pte, Ltd. Singapore
FMC
United (Private) Ltd.
Pakistan
FMC
WFC I, Inc.
Wyoming
FMC
WFC II, Inc.
Wyoming
FMC
Wyoming Corporation
Wyoming
Foraneto,
S.L. Spain
Forel,
S.L.
Spain
Forsean,
S.L. Spain
Intermountain
Research and
Development
Corporation Wyoming
Minas
El Castellar S.L.
Spain
Minera
Del Altiplano S.A.
Argentina
P.T
Bina Guna Kimia
Indonesia
BANKS
Bank
of America
Chicago IL
Telephone:
Facsimile:
Account
Number:
Account
Manager:
The
Subject reports a $400.0 million revolving credit facility , a $100 million
term loan, and a $100 million
stand-alone letter of credit facility
PAYMENT HISTORY
BUSINESS DATE LAST PAYMENT CREDIT BALANCE CUR 1- 31- 61-
CATEGORY REPTD SALE TERMS $
$ % 30
60 90 91+ COMMENTS
---------- ----- ----- ------- --------
-------- --- --- --- --- --- --------
AIR TRANS 05-09 05-09 NET 30
4000 0 0
0 0 0 0
AIR TRANS 05-09 00-00 UNK
4300 0 0
0 0 0 0 CUST 16 YR
COMMUN EQP 05-11 00-00 VARIED 0
0 0 0
0 0 0
COMMUN SVC 05-11 05-11 NET 30 5100
300 100 0 0
0 0
COMPUTERS 05-11 05-07 UNK
2700 0 0
0 0 0 0
FACTOR 05-08 00-00 NET 30
0 0 0
0 0 0 0
FREIGHT 05-10 05-06 VARIED
200 0 0
0 0 0 0
FRGHT FWRD 05-11 04-09 NET 30 0
0 0 0
0 0 0
INDUS SUPL 05-11 05-10 NET 30 800
800 26 25 15
34 0 CUST 19 YR
MEAT PROD 05-09 00-00 NET 30
3500 0 0
0 0 0 0 CUST
2 YR
OFFC SUPPL 05-10 05-10 NET 1700
0 0 0
0 0 0 CUST 21 YR
OFFC SUPPL 05-09 05-01 CREDIT 200
0 0 0
0 0 0 CUST 13 YR
PACKAGING 05-11 00-00 NET 30 0 0 0 0 0
0 0 CUST 12 YR
PERSNLSVCS 05-11 05-07 ROI 24900
0 0 0
0 0 0
PRNTG& PUBL 05-11 00-00 VARIED 6400
0 0 0
0 0 0
SAFTY PROD 05-09 00-00 NET 30 1100
0 0 0
0 0 0
TRUCK DLR 05-11 00-00 CONTRCT 5300
400 0 0
0 0 100
ADVERTISNG 03-04 00-00 NET 10 0
0 0 0
0 0 0
AGRI SUPPL 04-03 00-00 VARIED 0
0 0 0
0 0 0 CUST 17 YR
AIR TRANS 03-06 00-00 NET 7 0 0 0 0 0
0 0
BLDG MATRL 03-04 02-01 NET 30 0
0 0 0
0 0 0
BUS SERVCS 04-01 03-12 NET 30 0
0 0 0
0 0 0
CELLUL/PAG 03-01 00-00 NET 90 100
0 0 0
0 0 0 CUST 8 YR
CHEMICALS 04-10 04-09 NET 30
18000 2300 100 0
0 0 0
COMPUTERS 05-05 00-00 CREDIT 0 0 0 0 0
0 0 CUST 37 YR
COMPUTERS 04-02 00-00 NET 30 0 0 0 0 0
0 0
CRED CARD 05-09 00-00 NET 0 0 0 0 0
0 0
ELEC MFG 04-03 03-12 NET 30
1100 100 100 0
0 0 0
EQUIPMENT 03-11 00-00 CONTRCT 0
0 0 0
0 0 0 CUST 4 YR
FACTOR 04-07 00-00 NET 30
0 0 0
0 0 0 0 CUST 29 YR
FACTOR 05-04 98-06 VARIED
0 0 0
0 0 0 0
FACTOR 04-08 97-10 NET
0 0 0
0 0 0 0 CUST
7 YR
FREIGHT 05-06 00-00 NET30
300 300 0
100 0 0 0
CUST 4 YR
FREIGHT 03-09 03-05 NET 30
1100 1100 0
0 0 100 0
FREIGHT 04-12 02-07 VARIED
0 0 0
0 0 0 0
FRGHT FWRD 04-09 00-00 NET 30 27400
100 0 0
0 0 100
FRGHT FWRD 04-11 04-10 VARIED 100
100 0 100 0
0 0
FRGHT FWRD 03-04 00-00 NET 30 0
0 0 0
0 0 0
FRGHT FWRD 03-03 03-02 CONTRCT 3100 3100
100 0 0 0
0
GENERAL 05-02 01-01 NET 30
0 0 0
0 0 0 0 CUST 28 YR
INDUS MACH 04-02 04-01 NET-30 20400
2700 20 80
0 0 0 CUST 95 YR
LEASING 05-11 00-00 CONTRCT 9700
9100 100 0 0
0 0
MANUFCTRNG 03-01 02-08 1/10N30 0 0 0 0 0
0 0
MATRL HNDL 03-10 00-00 NET 15 0
0 0 0
0 0 0
OFFC SUPPL 05-01 98-03 CREDIT 0
0 0 0
0 0 0 CUST 13 YR
OFFC EQUIP 03-04 03-03 NET 30 6200
6200 51 27 0 0
22 CUST 5 YR
OFFC EQUIP 03-06 03-03 N30 2800
2500 0 0
0 100 0 CUST
3 YR
PACKAGING 03-03 02-04 NET 30 0 0 0 0 0
0 0
PRNTG& PUBL 05-06 05-05 CONTRCT
37200 10200 0 100 0 0
0 CUST 13 YR
PROP MGMT 04-01 00-00 NET 30
2500 300 100 0
0 0 0
TELECOM 05-10 00-10 NET 30
400 0 0
0 0 0 0
CUST 29 YR
TELECOM 05-10 05-03 NET 30
1700 0 0
0 0 0 0 WRITE-OFF
TELECOM 05-10 05-10 NET 30
700 0 0
0 0 0 0 CUST 33 YR
TRANSPORTN 04-11 00-00 VARIED 200
0 0 0
0 0 0
ADMIN 05-05 00-00 CREDIT
0 0 0
0 0 0 0 CUST 37 YR
CURRENT QUARTER 60200 1500
35 13 8 18 26
Payment Trends
INDUSTRY BUSINESS
BALANCE CUR 1- 31- 61-
DATE CUR DBT DBT $ %
30 60 90 91+
-------- --- --- --- -------- --- --- --- --- ---
20051100 0 6 44 10300 3 64
1 0 32
20051000 0 7 35 11500 5 62
1 29 3
20050900 0 7 25
11300 8
60 29 0 3
20050800 0 7 22 13900 51 26
0 20 3
20050700 0 7 21 18100 5 78
15 0 2
20050600 0 7 8 5700 49 51
0 0 0
Payment History - Quarterly Averages
BALANCE
CUR 1- 31- 61-
QUARTER
YEAR DBT $ % 30 60
90 91+
-------- ------ --- -------- --- --- --- --- ---
Third
2005 26 12200 24 48 9
16 3
Second
2005 16 9500 24 65 9
1 1
First
2005 18 8000 57 29 1
2 11
Fourth
2004 21 5100 63 15 3
7 12
Third
2004 9 11600 52 44 1
3 0
FINANCIAL INFORMATION
FINANCIAL FIGURES
Year-End (D/M/Y): 31/03/2006 31/12/2005 31/12/2004
Quarterly Consolidated Consolidated
Sales / Revenues 594,100 2,150,200 2,051,200
Interest Income -8,400 16,100 -13,300
Gross Margin 193,700 644,700
577,000
Operating Income (Loss) 73,100 239,500
225,300
Interest on Loans 2,000 62,300 80,900
Other Expenses -55,400 -46,100
32,700
Extraordinary Item -600 5,600 -15,400
RESULTS
Income before Taxes 63,300
193,300 131,100
Income Tax 25,000 82,300
-44,500
Net Income 37,700 116,600
160,200
ASSETS
Cash and Equivalents 184,100 206,400 222,100
Inventory 209,500 215,700
217,500
Accounts Receivables 619,700 526,200 504,300
Other Current Assets 105,300 119,000 128,800
Total Current Assets 1,118,600 1,067,300 1,072,700
Property Plant & Equip 1,002,900
1,012,000 1,111,900
Other Fixed Assets 480,800 486,800 588,800
Total Fixed Assets 1,660,000
1,672,700 1,905,700
Intangibles 150,700 148,600
169,800
Total Assets 2,778,600 2,740,000
2,978,400
LIABILITIES
Trade Creditors 524,800 548,500
649,000
Other Current Liab - 30,400 70,100
Total Current Liab 677,900 659,300 820,100
Long Term Debt 603,500 639,800
822,200
Other Long Term Liab 489,300 481,600 459,900
Total Long Term Liab 1,092,800 1,121,400 1,282,100
Total Liabilities 1,770,700 1,780,700 2,102,200
EQUITY
Retained Earnings 1,092,800 1,062,200 945,600
Total Equity 1,007,900 959,300
876,200
FINANCIAL ANALYSIS
Actual Previous Percentage of total assets
31/03/2006 31/12/2005 31/03/2006 31/12/2005
Cash and Equivalents 184,100 206,400
6.63 7.53
Inventory 209,500
215,700 7.54 7.87
Other Current Assets 105,300 119,000
3.79 4.34
Total Current Assets 1,118,600 1,067,300
40.26 38.95
Intangibles 150,700
148,600 5.42 5.42
Total Assets 2,778,600
2,740,000 100.00 100.00
Total Current Liab 677,900 659,300 24.40 24.06
Long Term Debt 603,500
639,800 21.72 23.35
Other Long Term Liab 489,300 481,600
17.61 17.58
Total Liabilities 1,770,700 1,780,700
63.73 64.99
Total Equity 1,007,900
959,300 36.27 35.01
The
Subject is publicly traded on the New York Stock Exchange. Financial details
appear above in thousands of US Dollars.
CURRENT OPERATIONS
NAICS
Code: 325 Chemical Manufacturing
NAICS
Code: 4226 Chemical and Allied Products Wholesalers
Number
of Employees: 5,000
Business
Activity:
The
Subject is a global chemical company providing solutions, applications and
products to a wide variety of end markets. The Company operates in three
distinct business segments: Agricultural Products,
Specialty
Chemicals and Industrial Chemicals.
Agricultural
Products’ focus is on insecticides, which are used in agriculture to enhance
crop yield and quality by controlling a broad spectrum of pests and for pest control for non-agricultural
applications, and on herbicides, which are used to reduce the need for manual
or mechanical weeding by inhibiting or
preventing
weed growth.
Specialty
Chemicals consists of our BioPolymer and lithium businesses and focuses on food
ingredients that are used to enhance texture, structure and physical stability,
pharmaceutical additives for binding and disintegrant use and lithium
specialties for pharmaceutical synthesis and energy storage.
The
Industrial Chemicals segment manufactures a wide range of inorganic materials,
including soda ash, hydrogen peroxide, specialty peroxygens and phosphorus
chemicals. FMC leases executive offices in Philadelphia, Pennsylvania and
operates 33 manufacturing facilities and mines in 18 countries. Their major
research and development facility is in Princeton, New Jersey.
During
2005, they closed their plants in Opelousas, Louisiana and Copenhagen, Denmark,
their blending operations in Bezons, France and abandoned their hydrogen
peroxide production plant in Spring Hill, West Virginia.
Trona
ore, used for soda ash production in Green River, Wyoming, is mined primarily
from property held under long-term leases. They own the mineral rig to the
Salar del Hombre Muerto lithium reserves in Argentina. A number of their
chemical plants require the basic raw materials, which are provided by these
mines,
without which other sources would have to be obtained. With regard to their
mining properties operated under long-term leases, no single lease or related
group of leases is material to their businesses or to their company a whole.
They
believe their facilities meet present requirements and are in good operating
condition. The number and location of their production properties for
continuing operations are:
Latin
United America and
Western Asia-
States Canada
Europe Pacific Total
Agricultural
Products 4
1 — 3 8
Specialty
Chemicals 3
1 4 4 12
Industrial
Chemicals 4
2 7 — 13
Total 11 4 11 7 33
PUBLIC RECORD
Legal
Proceedings (quoted from SEC filing 10-K):
Like
hundreds of other industrial companies, we have been named as one of many
defendants in asbestos-related personal injury litigation. These cases (most
cases involve between 25 and 200 defendants) allege personal injury or death
resulting from exposure to asbestos in premises of FMC or to
asbestos-containing components installed in machinery or equipment manufactured
or sold by discontinued operations. The machinery and equipment businesses we
owned or operated did not fabricate the asbestos-containing component parts at
issue in the litigation, and to this day, neither the U.S. Occupational Safety
and Health Administration nor the EPA has banned the use of these components.
Further, the asbestos-containing materials were housed inside of machinery and
equipment and accessible only at the time of infrequent repair and maintenance.
Therefore, we believe that, overall, the claims against FMC are without merit
and consider ourselves to be a peripheral defendant in these matters. Indeed,
the bulk of the claims against us to date have been dismissed without payment.
As
of December 31, 2005, there were approximately 34,000 premises and product
asbestos claims pending against FMC in several jurisdictions. To date, we have
had discharged, all before trial, approximately 65,000 asbestos claims against
FMC, the overwhelming majority of which have been dismissed without any payment
to the plaintiff. Settlements by us with claimants to date have totaled
approximately
$7 million.
We
intend to continue managing these cases in accordance with our historical
experience. We have established a reserve for this litigation and believe that
the outcome of these cases will not have a material adverse effect on our
consolidated financial position, results of operations or liquidity.
In
late June 2004, we were served in a lawsuit captioned “Lewis et al v FMC
Corporation” which was filed in United States District Court for the Western
District of New York. The suit was brought by thirteen residents of Middleport,
New York who allege that we violated certain state and federal environmental
laws
and seeks injunctive relief and monetary damages for personal injuries and
property damage in connection with such alleged violations. We believe this
suit is without merit.
We
have certain other contingent liabilities arising from litigation, claims,
performance guarantees and other commitments incident to the ordinary course of
business. Based on information currently available and established reserves the
ultimate resolution of our known contingencies, including the matters described
in Note 17, is not expected to have a material adverse effect on our consolidated
financial position or liquidity. However, there can be no assurance that the
outcome of these contingencies will be favorable, and adverse results in
certain of these contingencies could have a material adverse effect on our
consolidated financial position, results of operations or liquidity.
A
search of bankruptcy courts revealed no record of a Company by this name filing
for bankruptcy.
GENERAL COMMENTS
The
Subject was incorporated in 1928. The payment history shows some slowness but
is generally satisfactory as compared to industry average. No notable legal
filings were found. The Subject is considered responsible for normal business
transactions.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |