Chairman's - FMC Corporation

Segment Results
Agricultural Products
Year Ended Increase/
December 31, (Decrease)
2008 2007 $ %
(in Millions)
Revenue .................................... $1,058.7 $889.7 $169.0 19%
Operating Profit .............................. 245.2 207.0 38.2 18
Revenue of $1,058.7 million increased 19 percent versus the prior year period. North America revenues
grew by nine percent, Europe, Middle East and Africa by 33 percent, Asia by 12 percent and Latin America by
22 percent. Revenue benefited from favorable global agrochemical market conditions, increased planted acres in
key crops, new product introductions and selective price increases to offset higher input costs.
Segment operating profit of $245.2 million was 18 percent higher than the prior year. The earnings from the
higher revenue coupled with supply chain productivity improvements from the shutdown of the Baltimore
manufacturing facility were partially offset by higher raw materials costs. To a lesser extent, higher selling costs
to support the higher revenues also impacted operating profit in 2008.
Specialty Chemicals
Year Ended Increase/
December 31, (Decrease)
2008 2007 $ %
(in Millions)
Revenue ..................................... $764.5 $659.5 $105.0 16%
Operating Profit ............................... 152.0 142.7 9.3 7
Revenue of $764.5 million increased 16 percent versus the prior year period of which four percent was the
result of revenue from the two acquisitions that closed in the third quarter of 2008. Excluding the effects of these
acquisitions, BioPolymer revenues increased 14 percent on volume growth, particularly in food and personal care
and price increases to partially offset rising input costs. Lithium revenues increased eight percent versus the prior
period where volumes, particularly in primary compounds and specialty organics, have increased.
Segment operating profit of $152.0 million was seven percent higher than the prior year. Price increases
were offset by rising raw material and energy costs particularly for seaweed and wood pulp during the period of
$41.3 million. To a lesser extent, the introduction of export taxes in Argentina in 2008 also reduced operating
profits.
Industrial Chemicals
Year Ended Increase/
December 31, (Decrease)
2008 2007
(in Millions)
$ %
Revenue ................................. $1,296.9 $1,087.1 $209.8 19%
Operating Profit ........................... 201.4 92.5 108.9 118
Revenue of $1,296.9 million increased 19 percent versus the prior year period. Alkali revenues increased 16
percent period-over-period primarily due to higher pricing. Soda ash volumes were up marginally. Peroxygen
revenues period-over-period were higher by six percent with higher pricing being partially offset by volume
declines in the fourth quarter due to the economic downturn. Foret revenues period-over-period were higher by
37