FMC Corp FMC initiated a global restructuring plan known as "Project Focus" amid an unprecedented global crop protection market downturn that resulted in severe channel destocking.
Related: Agricultural Science Company FMC Pressured From Worst Supply Chain Correction: Analyst
The program aims to streamline the cost base and optimize the footprint and organizational structure, focusing on driving significant cost improvement and productivity.
Through Project Focus, the company expects to deliver contributions of $50 million-$75 million to adjusted EBITDA in 2024.
Once fully implemented, the company is targeting an annual run-rate savings of $150 million or more from the program by the end of 2025.
The company expects to incur pre-tax restructuring charges as well as consulting and other professional service fees.
FMC launched a voluntary separation program in select jurisdictions and disclosed workforce reduction in its Brazilian business.
The company estimates severance charges and other costs for initial actions already underway through Project Focus to be $20 million to $40 million.
Last month, FMC announced a strategic review of non-core assets, which includes the potential sale of its non-crop product line, Global Specialty Solutions.
Also Read: Agricultural Science Company FMC Outlines Strategic Growth Plan & Financial Targets: Here's Details
Price Action: FMC shares closed lower by 1.04% at $58.89 on Monday.
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