FMC Corporation (NYSE:FMC) Q2 2023 Earnings Call Transcript

Mark Douglas: Good question. Listen, there is always a commercial package to be put together. And rebates in some parts of the world are a meaningful way that we go to market, like everybody else, the U.S. being one of those markets, but rebates are not used all over the world. So, we consider all the tools we have to make sure that we’re delivering value to the growers and that we’re getting the appropriate value to FMC. So, if there are rebate changes to be made, they’ll be made, but it will be done in the context of the value we’re bringing.

Unidentified Analyst: Okay. And then, just coming back to Q4, in terms of costs, are they essentially all locked in now, and how much of Q4 volume and price expectations are at risk, would you say?

Mark Douglas: Andrew, do you want to…

Andrew Sandifer: I’ll chime on at least the first part of that question. I think the costs for Q4 are largely locked. There are items that move more quickly through our cost structure, particularly packaging items and logistics that we can continue to move as we move into fourth quarter. The final mix actually does matter because the cost reductions we’re seeing are not uniform across every input or every product that we have. So, I do think we have a high confidence in the level of cost tailwind we’re expecting in Q4 and a vast preponderance of that is pretty much locked in, but not quite all of it just yet. I think, in terms of — Mark, maybe you want to speak to price and volume in the fourth quarter in terms of visibility there.

Mark Douglas: Yes. I mean, listen, price and volume will be, as we’ve said, it will be within the quarter or very close to the quarter. A little early to say at this point, but as we get there, we’ll know exactly how we’re playing and how the market is moving. Our expectation, as I’ve said numerous times, is we expect orders to be coming very close to the planting season, and that’s what we’re gearing up for.

Operator: Thank you. Due to time constraint, I will now pass back to Mr. Zack Zaki for closing remarks.

Zack Zaki: All right. No, that’s it. Glenn, thank you very much. That’s all the time that we have for the call today. Thank you, and have a good day.

Operator: Thank you. This concludes the FMC Corporation conference call. Thank you for attending. You may now disconnect.