FMC Cuts '09 Outlook, Shares Tumble 12%

Chemical maker FMC(FMC Quote) lowered its earnings guidance for the rest of the year, citing higher raw-materials costs and weakening sales volumes in its industrial chemicals business -- an outlook that weighed its shares down by as much as 12% Tuesday.

The company, in reporting first-quarter earnings that met Wall Street estimates Tuesday morning, said it now expects second-quarter earnings per share of $1.10 to $1.20 and full-year EPS of $4.40 to $4.80. That's below analysts' current targets of $1.36 and $4.86, respectively.

Specifically, the company said that it sees earnings in its industrial chemicals division coming in at 40% to 50% below year-ago levels. Higher selling prices, FMC said, will not be enough to offset lower volumes and higher raw-material and energy costs. ...