Segment earnings in Specialty Chemicals of $27 million increased 9% versus a year ago, driven by the strong commercial performance of both lithium and Biopolymer particularly in the company’s food ingredients business mitigated somewhat by higher raw material and energy costs.

Industrial Chemical Segment

The revenue of $246 million increased 16% versus a year ago, as sales gains were achieved across soda ash, peroxygens and Foret. Higher selling prices for soda ash and hydrogen peroxide were the primary drivers, where solid demand growth and tight supply conditions in key markets continue to provide the benefit.

Segment earnings of $21.3 million increased 18% versus the year ago quarter, driven by the higher selling prices. The company’s strong commercial performance was partially offset by higher energy and raw material costs and the absence of profits from Astaris, which was divested in November 2005.

The higher energy cost particularly impacted FMC’s Spanish operations. This was compounded in the current quarter by lower electrical selling prices for the co-generated power the firm sells in the Spanish grid. The industrial segments earnings as a result were slightly lower than the firm’s prior guidance due to the weaker than forecast performance of Foret. The management remains optimistic that the Spanish administration will soon move to restore order to the electrical market in Spain and that the firm will be able to recover the increased cost resulting from the deregulation of natural gas.

Fiscal Year to Date Financial Highlights

Net income was $119.1 million, up 30% from $91.3 million in the year-earlier period.

Net income in the current period included restructuring and other income and charges of $48.8 million after-tax, versus restructuring and other income and charges of $38 million after-tax in the prior-year period. Excluding these charges, the company earned $167.9 million in the first nine months of 2006, an increase of 30% versus $129.3 million in the first nine months of 2005.

- Agricultural Products segment earnings were $127.7 million, an increase of 22% from the first nine months of 2005, due to higher sales, an improved product mix and continued supply chain productivity improvements, which more than offset the unfavorable impacts of generic competition and higher raw material costs.
- Specialty Chemicals segment earnings of $94.3 million increased 11% versus the year-earlier period due to the strong commercial performance in lithium and BioPolymer, which more than offset increased energy and raw material costs.
- Industrial Chemical segment earnings of $75.5 million increased 18% versus the year-earlier period as a result of significantly higher selling prices, offset in part by higher raw material and energy costs, particularly in Spain, and the absence of profits from Astaris, which was divested in November 2005.

Revenue was $1,758.6 million, an increase of 8% compared with $1,628 million in the prior-year period.

- Revenue in Agricultural Products was $571.4 million, an increase of 3% versus the prior-year period. Sales growth in Latin America, Asia and North America was partially offset by the impact of generic price competition in North America.
- Revenue in Specialty Chemicals was $446.8 million, an increase of 6% versus the prior-year period, driven by volume growth and higher selling prices for lithium, particularly in upstream primary compounds, and BioPolymer products.
- Revenue in Industrial Chemicals was $743.2 million, an increase of 14% versus the prior-year period, driven by higher selling prices for soda ash and hydrogen peroxide.

- Corporate expense was $33.8 million as compared to $33.4 million in the year-earlier period.
- Interest expense, net, was $25.1 million, down from $47.3 million in the prior-year period due to lower interest rates and debt levels.
- For the period, depreciation and amortization was $98 million and capital expenditures were $80.5 million.

Fourth Quarter Fiscal 2006 Outlook

For the fourth quarter of 2006, the firm expects earnings before restructuring and other income and charges of $1.12 to $1.22 per share.

- In Agricultural Products, segment earnings are expected to be down 10% to 15% due to the shift of some export sales into the third quarter, less favorable market conditions in Brazil than experienced a year ago, and continued higher spending associated with the firm’s growth and innovation initiatives.
- In Specialty Chemicals, the company expects fourth quarter earnings growth in the mid single-digits as a result of continued good performance in both Biopolymer and Lithium. - In Industrial Chemicals, the firm expects earnings growth of approximately 40% to 45% due to the higher selling prices for soda ash, and improved volumes, but partially offset by higher input costs, particularly energy in Spain.

Fiscal 2006 Guidance

- The outlook for full-year 2006 earnings before restructuring and other income and charges is $5.35 to $5.45 per share. At the midpoint, earnings would then be up 23% year-over-year.
- The firm still expects free cash flow for 2006 to be approximately $150 million.

Key questions from the third quarter fiscal 2006 earnings call conducted by FMC Corp. on November 2, 2006.

In your earnings outlook for the full year, the firm has reduced the high-end of the range by about a dime. Is the reduction in outlook due to the current environment in Brazil or is it due to Agricultural products?

The firm has lowered the top-end of its earnings guidance range by 10 cents a share. It’s for two reasons; one for Agriculture and Brazil, the firm has taken a conservative outlook for the fourth quarter down there. The second is the energy issue in Spain. The Spanish authorities deregulated gas effective July 1. There has been a dislocation in the electrical power pricing market as a result of a move by a single Spanish electrical power generator. The net of all of which has led the firm to a lower outlook for industrial, and therefore a lower high-end of the range for the corporation in the fourth quarter.