Chairman's - FMC Corporation

from acquisitions made in 2008. Lithium
performance was adversely impacted by
reduced demand in industrial and energy
markets.
Our Industrial Chemicals business, which
serves end markets that are sensitive to
economic downturns, was impacted more
than our other businesses by the global
recession. Signifcant volume declines
contributed to sales that were 21 percent
lower than the prior year and earnings that
fell 55 percent. Lower volumes across
the entire segment and selling prices in
phosphates more than offset higher selling
prices in most of our other businesses.
Financial Strength
Despite these challenging economic
conditions, we fnished 2009 in a stronger
fnancial position than we entered the
year. Our balance sheet is solid and our
debt levels are low compared to our cash
generating capabilities. Net debt at the
end of 2009 was $567 million, less than the
EBITDA we generated in 2009. Standard
& Poor’s and Moody’s recognized our
fnancial strength with upgrades in October
and November 2009 to the highest ratings
attained since 1986. In addition, Standard &
Poor’s returned FMC to the benchmark S&P
500 Index.
Following the upgrades, we completed a
$300 million 10-year senior notes offering
at a coupon rate of 5.2 percent. We believe
our bond pricing had the tightest spread of
any BBB chemicals issuer for any maturity
during the year, contributing to the favorable
rate. Proceeds from the offering paid down
outstanding borrowings on our credit facilities.
This refnancing gave us the ability to further
improve our liquidity profle. As 2009 closed,
we had available funds under committed
credit facilities of $762 million and cash on
hand of $77 million. Debt maturing in the
next fve years is less than $200 million.
Free cash fow for 2009 was approximately
$100 million and is projected to reach
approximately $200 million in 2010. This
strong free cash fow and disciplined
approach to investing has allowed us to
return cash to shareholders while retaining
the fnancial fexibility that is essential to
execute on our strategic objectives.
Strategic Flexibility, Agility in Dynamic
Global Markets
FMC is well positioned among chemical
companies because a major part of our
portfolio is not subject to broad economic
cycles. We participate in attractive
and growing markets such as food,
pharmaceuticals, agriculture and energy.
Our fnancial strength gives us the fexibility
to pursue growth on our terms. We will
strive to be a bigger company but without
compromising this strong fnancial position.
While we will manage our Industrial
Chemicals for cash, we have a well-defned
strategy for proftable growth in Agricultural
Products and Specialty Chemicals. We
will aggressively drive internally sourced
growth by delivering on our technology road
map, and by taking full advantage of the
growth opportunities in the world’s rapidly
developing economies. In addition, mergers
and acquisitions will be an integral part of
our strategy in these two growth businesses.
Outlook
The future looks very promising for FMC.
In 2010, we expect to deliver strong
performance. We will strengthen our
leadership positions in core markets and
pursue opportunities in emerging industries
such as environmental remediation, air
quality, food safety, electric and hybrid
automobiles, and replacements for
petroleum derivatives.
Thanks to the diversifcation of our strong
portfolio and the extraordinary efforts of our
4,800 employees worldwide, 2010 will be
another very good year for our company.
FMC’s tradition of providing quality products
and outstanding service to its customers
combined with its passion for innovation will
continue to deliver value to its shareholders.
5
4
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2
1
25
20
15
10
5
50
40
30
20
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0
-10
-20
EARNINGS PER SHARE*
$3.09
$4.63
$4.15
2007 2008 2009
*Earnings before restructuring and other income
and charges
RETURN ON INVESTED CAPITAL
16.3%
23.8%
19.9%
2007 2008 2009
TOTAL SHAREHOLDER RETURN
43.6%
(17.1)%
25.8%
2007 2008 2009
FMC Corporation | 2009 Annual Report | A Message to Our Shareholders 3