FMC Corp. appointed a dedicated executive to oversee restructuring efforts as the fertilizer and chemical maker expects charges of up to $215 million related to its transformation plan.
The Pennsylvania-based firm on Thursday appointed Barry Crawford, vice president of operations, to a newly created executive role leading FMC’s transformation, effective March 1. The company also promoted three people to executive vice president roles.
The changes come following a year of major setbacks for the global crop protection industry. Companies navigated through significant weather and demand challenges that adversely affected earnings. FMC reported consecutive quarterly profit declines in 2023 over 2022 driven by lower sales in Latin America and widespread destocking issues.
To get the company back on track, FMC notified shareholders of its “Project Focus” plan to deliver between $50 million and $75 million in contributions to adjusted EBITDA in 2024. This involves trimming costs and expenses, divesting unessential assets and reducing its workforce by 8%.
FMC estimated program savings will surpass $150 million by the end of 2025 once fully implemented. The company plans to reduce its spending, assess its global location strategy and potentially sell its non-crop assets to make itself leaner and more agile.
As part of the transformation costs, FMC expects to spend between $180 million and $215 million to restructure the business. That includes up to $100 million in severance and up to $90 million for the possible relocation of certain manufacturing and other operations.
Crawford will be responsible for ensuring FMC delivers cost savings beyond 2024 and designing a new company model that drives greater efficiency and profitability, according to a news release. He will continue to report to Mark Douglas, president and CEO.
“An executive of Barry's caliber is critical in leading FMC's transformation — to adapt our operating model in ways that are more appropriate for our future success, and update how we are organized, where we operate and the way we work," Douglas said in a statement.
In addition to Crawford, FMC made other changes to its c-suite. The company promoted Thaisa Hugenneyer to executive vice president of operations, supply chain and procurement; Brian Angeli to executive vice president and chief marketing officer; and Seva Rostovtsev to executive vice president and chief technology officer. They all previously were on the executive leadership team and will continue to report to Douglas.
The executive changes for the most part took effect March 1. Angeli will take over once Diane Allemang, executive vice president and CMO, retires on May 1.
