Chairman's - FMC Corporation

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Industrial CHEMICALS Industrial Chemicals, which serves end markets that are sensitive to economic downturns, was impacted by the global recession more than our other businesses in 2009. Sales of $1,026.7 million declined 21 percent, the result of reduced global demand, particularly in fat glass, detergent and pulp and paper markets, and lower selling prices in phosphates, which more than offset higher selling prices in most other businesses. Earnings of $89.7 million were 55 percent lower than the prior year, driven by the sales decline. In response to these market conditions, several actions were taken in 2009 to realign operating assets and reduce costs — we shut down a peroxygens manufacturing facility in Santa Clara, Mexico; curtailed soda 8 ash operations at our Granger, Wyoming, facility; and initiated the exit from Foret’s operations in Barcelona, Spain. In 2010, we will derive meaningful cost benefts from these actions. Global Soda Ash Demand Recovery Under Way As we begin 2010, global soda ash demand recovery is under way. Though challenging economic conditions persist, we expect global demand for soda ash to grow by approximately 4 percent in 2010. This outlook returns global demand to its 2008 level. Recovery in the fat glass market for soda ash is expected to be the primary driver as a result of the global uptick in automobile production, housing and commercial construction. Non-glass applications, such A major use for FMC soda ash is production of fat glass for housing and commercial construction, automobiles, and solar panels. From left, at PPG Industries’ glass plant in Carlisle, Pennsylvania, PPG facilitator Ben Gilbert and FMC glass industry manager Jim McClernon view fat glass production. FMC is a major supplier to PPG, a leader in technological and environmental advances in the glass industry. Industrial Chemicals was impacted more than our other businesses by the global recession. As we enter 2010, we are experiencing increased demand across our businesses and earnings are expected to improve. FMC is the leading producer of natural soda ash in North America. At Green River, Wyoming, we mine trona, the raw material for soda ash. We believe the use of proprietary, low-cost mining technologies, such as longwall (pictured) and solution mining, gives us the lowest cost position. as chemicals and detergents, are also expected to improve. Given this demand recovery, coupled with our low-cost position, we anticipate the economic benefts of operating at or near 100 percent utilization in 2010. Our soda ash business will also beneft from lower energy costs. As a result, our soda ash business will once again deliver signifcant earnings growth for the company. Diversifying Peroxygens Markets The largest component of our Peroxygens business is hydrogen peroxide. While hydrogen peroxide is consumed in a wide variety of applications, the single largest use is as a bleaching agent for pulp and paper. Peroxide demand in the pulp and paper market is expected to increase by approximately 4 percent in 2010, led by a recovery in market pulp and bleached paperboard. Increased demand for hydrogen peroxide will be augmented by continued growth in specialty applications. Our program to diversify our market exposure in Peroxygens remains on track. Overall,
SEGMENT REVENUE AND OPERATING EARNINGS Outlook 1500 1200 900 600 300 0 since inception of the strategy three years ago, specialty applications have grown to account for more than 40 percent of Peroxygens’ sales. We continue to invest in promising growth initiatives in specialty peroxygens and expect further success in 2010. Persulfate growth initiatives are focused on the continued globalization of our branded Klozur ® persulfate for environmental soil remediation and oil feld product portfolio expansion. Peracetic acid (PAA) sales to the food safety industry are expected to grow in excess of 40 percent in 2010 as FMC’s Spectrum ® As we enter 2010, we are experiencing increased demand across our businesses, 1,296.9 a continuation of the sequential demand recovery that we experienced in the second 1,087.1 1,026.7 Segment Revenue half of last year. Volume gains are particularly evident in the export market for soda ash and in our North American peroxygens business — in both hydrogen peroxide 92.5 201.4 89.7 Operating Earnings and in specialty peroxygens serving environmental, food and aseptic packaging applications. In addition, we are benefting 2007 2008 2009 from actions taken in 2009 to realign our operating assets and lower raw material and energy costs. We expect earnings to improve by 5 to 15 percent in 2010 as compared to the prior year, as lower selling Foret to Beneft From Lower Costs prices are more than offset by improved Foret will be the biggest benefciary of volumes and lower raw material and reduced operating costs in 2010, particularly energy costs. for phosphate rock, caustic soda and energy. Foret participates in both phosphorus chemicals and hydrogen peroxide. Its phosphorus chemicals products are used in a range of applications including detergent, feed and industrial uses where demand growth in these applications tends to mirror GDP growth. Though volumes across its businesses are forecast to be relatively level to prior year, lower raw material and energy FMC Peroxygens Division has program captures additional share costs are expected to be the primary drivers developed a portfolio of specialty of the U.S. poultry market. Other developing of Foret’s overall improved proftability sanitizers and sterilants used with adjacent growth initiatives for PAA in packaging and waste water markets are also in 2010. the latest generation of aseptic flling equipment such as the GEA expected to deliver signifcant growth. Procomac SpA Ecospin. FMC chemistry is used to protect food and beverages, such as orange juice, FMC Foret has jointly developed with the Institute of Chemical Technology (Valencia, Spain) and ceramic tile maker Ceracasa S.A. an exterior building tile that reduces nitrogen oxide concentration in the air. Adjacent to a busy Barcelona street, Ramón Artigas, FMC Foret business development subdirector (left) and Fran Raya, Ceracasa marketing and product director, hold a BIONICTILE for processing companies globally. ® that uses FMC OFFNOX ® technology to convert nitrogen oxide into nitrates. FMC is investigating OFFNOX uses for paints, cars and other applications to improve air quality. Dollars in Millions FMC Corporation | 2009 Annual Report | Industrial Chemicals 9
Page 3 and 4: Chairman’s LETTER Eight years ago
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On January 19, 2009, the European C
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Environmental obligations. We provi
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Sensitivity analysis related to key
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Our debt portfolio, at December 31,
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FMC CORPORATION CONSOLIDATED STATEM
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FMC CORPORATION NOTES TO CONSOLIDAT
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NOTE 3: ACQUISITIONS 2009 Acquisiti
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MANAGEMENT’S ANNUAL REPORT ON INT
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FMC CORPORATION SCHEDULE II—VALUA
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ITEM 13. CERTAIN RELATIONSHIPS AND
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Exhibit No. Exhibit Description *10
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Exhibit No. Exhibit Description 23.
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Signature Title Date /S/ ROBERT C.
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COMPUTATION OF RATIO OF EARNINGS TO
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The Board of Directors FMC Corporat
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I, W. Kim Foster, certify that: CHI
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CFO CERTIFICATION OF ANNUAL REPORT
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Chairman's - FMC Corporation

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