FMC Corporation (NYSE:FMC) Q4 2023 Earnings Call Transcript

In terms of your question on covenant leverage, yes, we are assuming the covenant leverage at less than 3.5x. That is assuming that we close a divestiture of the GSS business at some point in the second half. That process is just getting launched. As Mark noted, we finished preparations, we’re getting prepared to go to market formally with that property. We had a lot of expression of interest in it. So we’ll run through that process and continue to update as we move forward to get under the 3.5x covenant leverage, we do need to have proceeds from the GSS divestiture.

Operator: Our next question comes from Richard Garchitorena from Wells Fargo.

Richard Garchitorena: Great. Just wanted to touch on the new measures that you’ve implemented to increase visibility into the channel inventories. I was just wondering if you got some early lessons from that, so far, are you seeing any change in how distributors manage their own inventories? And have you had any thoughts in terms of how you manage your own inventories and then your own supply chain going forward?

Mark Douglas: Yes. Thanks, Richard. Yes, we have seen already some insights into how distribution is thinking of managing its own supply chain. And clearly, distribution is lower its inventory levels. you would expect that to happen. The good news is some of the insights we already have in certain parts of the world like the U.S. which we think is probably the furthest advanced at the grower level and at the retailer level. inventory is probably at or maybe even below normal levels. So it’s going to be interesting as we really roll into the U.S. season starting in a month or so time [ph], how that really unfolds. The rest of the pieces have been put in place. I do expect Europe to have a much better view. The survey we’ve put in place is pretty comprehensive.

And we’re really entering the European seasons Q1 and Q2 are the big growth areas for Europe. So I’m very interested once we get through to the end of Q2, what does that survey tell us when we get to the end of the season. As I said, it’s very comprehensive. It’s hundreds of different retailers and more importantly, growers throughout Europe. So we’ll get a good view there.

Operator: We currently have no further questions. And that concludes today’s FMC Corporation conference call. Ladies and gentlemen, thank you for joining. You may now disconnect your lines. Thank you.