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FMC Corp. (NYSE:FMC) -6.9% pre-market Monday after cutting revenue guidance for Q2 and FY 2023, citing substantially lower than expected volumes due to an abrupt and significant reduction in inventory by channel partners.
FMC (FMC) said the reduction became evident near the end of May and continued through the remainder of the quarter in North America, Latin America and EMEA.
For Q2, FMC (FMC) cut revenue guidance to $1B-$1.03B from $1.42B-$1.48B previously and below $1.45B analyst consensus estimate, and sees Q2 adjusted EBITDA of $185M-$190M.
Based on current channel dynamics, the company revised its full-year outlook with revenues now expected at $5.2B-$5.4B, compared with its previous outlook of $6.08B-$6.22B and $6.1B consensus, an sees FY 2023 adjusted EBITDA of $1.3B-$1.4B.
“Even as we manage through this market contraction and significant inventory reduction by our channel partners, on-the-ground consumption of our products remains strong and at similar levels to last year,” President and CEO Mark Douglas said.
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