FMC CEO Addresses Winning ‘Differentiator Strategy’ at Credit Suisse Ag Conference
Unique Business Strategy Propels FMC Agricultural Products to Eight Consecutive Years of Record Earnings
PHILADELPHIA, March 7, 2012 – FMC Corporation (NYSE:FMC) president, CEO and chairman, Pierre Brondeau, this week discussed a unique ‘differentiator strategy’ that has helped FMC Agricultural Products lead the industry in profitability and deliver eight consecutive years of record earnings. Brondeau made his remarks at the Credit Suisse 17th Annual Global Ag Productivity Conference in London.
“We have a winning differentiator strategy that broke an industry paradigm,” said Brondeau. “The conventional paradigm is – if you want to be successful in the agricultural industry, you either have to invent new active molecules or biotech products, or you need to be a generic company and compete on cost.
“We believed we could do both – that we could do innovation our way and be globally cost competitive with anybody in the industry. And we have,” said Brondeau. “This low-cost innovation strategy has worked very well for us.”
In 2011, FMC Agricultural Products sales grew 18 percent to $1.46 billion and earnings grew 13 percent to $348 million with an earnings margin of 24 percent. Approximately 25 percent of sales were generated from product and market innovations introduced over the previous five years, said Brondeau.