Mark A. Douglas
President, Chief Executive Officer and Director at FMC
Thank you, Zack, and good morning, everyone. FMC delivered record third quarter results. We grew our revenue by 10%, EBITDA by 12%, EPS by 17% and importantly, expanded our EBITDA margins despite continuing cost pressures. Performance in the quarter was driven by broad based volume growth and price increases. New products introduced in the last 12 months continue to gain momentum, and we are now forecasting sales from these products to account for more than 1/3 of our revenue growth this year. In addition, FMC's Plant Health business had an excellent quarter with 40% year over year growth led by biologicals. Looking ahead, we continue to expect a strong finish to the year, driven by high margin volume gains and accelerated pricing actions as well as a robust global market backdrop. I'd like to take a moment to acknowledge our operations and procurement teams for their contribution to our third quarter performance. The supply chain and logistics challenges highlighted in our last earnings call continued to disrupt ag chem and other industries around the world. FMC was able to meet the strong grower demand for our products in a timely manner. Thanks to the work of these teams. Let me also briefly comment on COVID-19's impact on FMC. All our manufacturing facilities and distribution warehouses remain operational and properly staffed. Our research laboratories and greenhouses continue to be fully active, and we have resumed in office operation in many parts of the world. FMC continues to follow all guidance given by local authorities. Turning to our Q3 results on slide three.
We reported $1.2 billion in third quarter revenue, which reflects a 10% increase on a reported basis and a 9% increase organically. Growth was broad-based with 11 of our top 20 countries posting double digit growth in the quarter. We had strong growth in all product categories, led by greater than 20% growth in herbicides. This was partially offset by registration losses in EMEA and Latin America. Adjusted EBITDA was $293 million, an increase of 12% compared to the prior year period and $18 million above the midpoint of our guidance range. EBITDA margins were 24.6%, an increase of 40 basis points compared to the prior year, driven by mix improvement as well as operational discipline and price increases in all regions. Adjusted earnings were $1.43 per diluted share in the quarter, an increase of 17% versus Q3 2020. The year over year increase was primarily driven by an increase in EBITDA with the benefit of share repurchases and lower interest expenses, largely offset by other factors. Relative to our Q3 guidance, the $0.12 beat was driven almost entirely by EBITDA. Moving now to slide four. Sales in Asia increased 20% year over year and 19% organically, driven by strong diamide sales across the region as well as pricing actions. In Australia, we had a successful launch of Vantacor insect control, which is the new higher concentration formulation of Rynaxypyr active. Vantacor is applied to specialty crops such as chickpeas. The Australian market also benefited from positive grower sentiment, favorable weather conditions and strong insect pressure. India had another growth quarter despite an erratic monsoon, which resulted in drive spells in parts of the country. India's growth was driven by diamide sales in rice as well as continued expansion of the rest of our portfolio, leveraging our strong market presence. In Latin America, sales increased 11% year over year and 9% organically, driven by double digit growth of insecticides in Brazil and Argentina as well as pricing actions across the region. Corn, soy and cotton were the key crops driving growth in the quarter. This is a direct result of our strategy to improve market access and increase penetration of our technologies, particularly in the Brazilian soybean market. Chile is another good example of this as sales nearly doubled compared to this time last year as we leveraged our enhanced market presence.
Plant Health products grew approximately 50% in the region led by biologicals and seed treatment. Latin America was impacted partially by registration cancellations and rationalizations of products in the quarter. EMEA grew revenue 12% and 10% organically, driven by strong demand for our herbicides and diamides across the whole region despite headwinds from registration cancellations. Among others, Russia, France, Germany and the U.K. grew double digits in the quarter. Demand was especially strong for herbicide applications in cereals and oilsee rape. South Africa double digit sales in the period compared to the previous year, driven by the continued penetration of diamides, mainly on citrus and top roots. This is a great demonstration of the untapped potential in new markets for our diamides. Our U.S. and Canada branded business grew greater than 20%, driven by strong demand for our diamides and four herbicide applications as well as pricing actions. Vantacor had a successful introduction in the U.S., where it is used to target pest in a range of crops, including soybean, corn and cotton. The Vantacor launch was timely and welcomed by growers who are battling extended fall [Indecipherable] pressure from the southern markets up through the middle of the country.
Overall, North America sales decreased 6% year over year and 6% organically due to the continued shift of diamide global partner sales in the quarter from North America to other regions as we have described in previous calls. Moving to slide five. Despite continuing supply issues across the industry, FMC's third quarter revenue increased by 10% versus prior year, driven by a 9% contribution from volume. Gross prices increased 1% in the quarter as our most recent pricing actions went into effect. EBITDA in the third quarter was up 12% year over year, primarily due to broad based volume gains. We also had a $12 million contribution in the quarter from price increases as invoiced to customers. The benefit of our pricing action was masked in the quarter by some favorable rebate and other adjustments in the prior year period that did not repeat this quarter. Costs continue to be a headwind. However, the total amount incurred in the third quarter was less pronounced than previously projected, mainly due to timing. We still expect second half cost to be consistent with previous guidance and FX was a $10 million tailwind in the quarter. Turning to slide six. Before I review FMC's full year 2021 and Q4 earnings outlook, let me share our view of the overall market conditions. We continue to expect the global crop protection market will be up mid single digits this year on a U.S. dollar basis. Breaking this down by region, we continue to anticipate high single digit growth in the Latin American market, mid single digit growth in the EMEA market, low to mid single digit growth in the Asian market and low single digit growth in the North American market.
We are raising FMC's full year 2021 earnings guidance to the range of $6.59 to $6.99 per diluted share, a year over year increase of 10% at the midpoint, reflecting the impact of share repurchases completed year to date. Our 2021 revenue forecast remains in the range of $4.9 billion to $5.1 billion, an increase of 8% at the midpoint versus 2020. EBITDA remains in the range of $1.29 billion to $1.35 billion, representing 6% year over year growth at the midpoint. Guidance for Q4 implies year over year revenue growth of 19% at the midpoint on a reported basis with no FX impact anticipated. We forecast EBITDA growth of 29% at the midpoint versus Q4 2020 and EPS is forecasted to be up 41% year over year. Approximately 3/4 of the EBITDA growth is driven by the return of business missed in Q4 2020 due to supply chain disruptions in North America and weather impact in Latin America. Turning to Slide seven and full year EBITDA and revenue drivers. Revenue is expected to benefit from 6% volume growth, a 1% price contribution from higher prices and a 1% benefit from FX. We anticipate continued strong volume growth led by Latin America, North America and Asia. We have increased our forecast again for revenue from products launched in 2021. These sales are now expected to contribute $140 million in year over year growth, up from our last forecast of $130 million and our initial view of $100 million. Pricing actions in Q3 will continue to accelerate in Q4.
We will continue to raise prices across all regions going into next year. Despite the shift of costs from Q3 to Q4, estimates of full year cost headwinds have not changed since our detailed comments on the last call. This is why our full year outlook remains unchanged. Moving to slide eight and our fourth quarter drivers. Revenue is expected to benefit from strong volume gains. In Brazil, the strength of soft commodity prices, projected increases in planted areas as well as good weather conditions are all leading to a good cadence of incoming orders and give us confidence in our expectations for a strong fourth quarter. In the U.S., channel inventories are normal for this time of year. our new product launches are gaining significant traction and market sentiment supports our expectations for a robust fourth quarter. As I noted earlier, we've also moved on price increases with higher prices already in effect in the Brazilian and U.S. markets. Similar actions are underway in other countries across the globe, such as Australia, Russia, France, Mexico and Argentina, and you should expect us to continue raising prices through the year end and well into next year. Cost increases are consistent with our guidance for the second half. We continue to pursue cost improvement opportunities and remain vigilant with our cost controls, all without impacting our R&D pipeline or growth trajectory. I'll now turn the call over to Andrew.