FMC Corporation expecting pre-tax restructuring charges of $180M-$215M

In a regulatory filing, FMC Corporation said that, “The company expects to incur pre-tax restructuring charges in the range of approximately $180M-$215M, which is subject to future changes, in connection with Project Focus. The company estimates total severance charges and related benefit costs for actions associated with Project Focus to be in the range of $85M-$100M. This includes charges associated with our previously announced voluntary separation program in select jurisdictions and workforce reduction actions in its Brazil business. Additionally, this estimate now includes charges for global involuntary workforce reductions resulting from changes to our operating model known at this time. In total, actions under Project Focus known at this time will result in a global workforce reduction of approximately 8%. In addition to workforce reductions, we will reduce indirect spend, assess our global location strategy, and divest from non-core assets, which includes the possible sale of our non-crop Global Specialty Solutions business. Included within the estimated charges below as well as the severance charges described above are costs needed to transition various activities to Switzerland in order to realize the benefits associated with the recently awarded tax incentives of approximately $1.4B granted to the company’s Swiss subsidiaries. We expect asset write-off charges in the range of $80M-$90M in connection with Project Focus activities primarily related to the possible relocation of certain manufacturing and other operations. The company expects to incur consulting and other professional service fees totaling approximately $5M-$15M to help execute these actions as well as for the design and implementation of the future structures and processes. Additionally, we may incur up to $10M in other charges. We may incur additional asset write-off charges, inventory and other working capital charges, primarily associated with the liquidation of excess inventory in select markets, relocation charges, and contract termination charges in connection with Project Focus and will provide an estimate of charges when known. The company has not fully defined all of the specific actions that may be required to deliver the target benefits. The company still expects Project Focus is to deliver $50M-$75M in contributions to adjusted EBITDA in 2024. The targeted annual run-rate savings remains unchanged at $150M or more by the end of 2025 from the program once fully implemented.”