content_image/175177.jpg content_image/175178.jpg
was unwarranted and contrary to French administrative law, and we are challenging the decision. Through these efforts, we are seeking to minimize the interruption in existing and future bifenthrin sales in the European market. 

We intend to defend vigorously all our products in the U.S., EU and other countries’ regulatory processes where FMC’s pesticide products will be reviewed in the ordinary course of regulatory programs during 2011 as part of the ongoing cycle of re-registration in countries around the world. The Brazilian health surveillance agency has informed us 

## Specialty Chemicals 

that they intend to review carbofuran along with 13 other major pesticides, but has yet to issue any required formal announcement that identifies their specific concerns or preliminary position on re- registration. FMC is cooperating and defending our product in this process. Under the Brazilian regulatory process, any recommendation would require public notice and comment as well as concurrence from the Brazilian environmental and agricultural ministries before any regulatory change is effective. Thus, we do not expect a potential sales impact in Brazil in 2011. 

<img src='content_image/175177.jpg'>

Revenue in Specialty Chemicals was $824.5 million, an increase of approximately nine percent versus the prior-year period. The increase was driven primarily by a robust demand recovery in lithium primaries and strong commercial performance in BioPolymer. 

BioPolymer revenues of $611.5 million increased six percent from the prior-year period. This increase was primarily due to higher volumes which increased revenue by five percent. BioPolymer experienced broad-based volume gains across both food and pharmaceutical markets. Additionally, improved pricing and mix increased revenue, driven primarily by higher pricing in food ingredients. 

Lithium revenues of $213.0 million increased 22 percent from the prior-year period primarily due to higher volumes driven by improving economic conditions slightly offset by lower pricing. Higher volumes 

## Industrial Chemicals 

increased revenue by 29 percent while the lower pricing impacted revenues downward by seven percent. The improving economic conditions in lithium are driven primarily by growth in battery and metals markets in Asia. 

Segment operating profit of $185.0 million increased 16 percent versus the year ago period, as volume gains in lithium primaries, favorable commercial performance in BioPolymer and the benefits of productivity initiatives were partially offset by higher raw material costs. 

In 2011, we expect full-year revenue growth in the mid-single digits, driven by favorable commercial performance in BioPolymer and higher selling prices and favorable mix in lithium. Full-year segment operating profit growth is expected in the low teens reflecting higher sales across all businesses and continued productivity improvements. 

<img src='content_image/175178.jpg'>

Revenue in Industrial Chemicals was $1,054.8 million, an increase of approximately three percent versus the prior-year period. An increase in volumes across the segment increased revenues by eight percent which was offset by a seven percent decline in pricing. Soda ash revenues were up due to increased volumes, particularly in the export market, partially offset by lower prices. The segment experienced volume increases in peroxygens and phosphates offset by reduced selling prices for these products. The higher volumes in the segment also resulted in increased freight billings which increased revenue by three percent. The segment was also negatively impacted by $12 million or one percent decrease due to lower electricity sales due to the divestiture of a Spanish co- generation facility in the third quarter of 2009. In Spain, we operate electricity co-generation facilities and sell excess electricity into the Spanish electrical grid. 

Segment operating profit of $122.9 million increased approximately 37 percent versus the year ago period, driven by the strong demand recovery and lower raw material, particularly phosphate rock, and energy costs which more than offset lower selling prices across the segment. 

In 2011, we expect full-year revenue to be approximately 5 percent lower as growth in soda ash and peroxygens will be offset by the absence of revenue from the exited phosphate business, which occurred at the end of 2010. Full-year operating profit growth is expected in the mid- twenties driven by higher selling prices and volume growth augmented by the benefit of cost reduction initiatives. 

Recent events in Venezuela, such as hyperinflation, devaluation of currency, government price controls, parallel exchange rates, and political issues have created significant risks and uncertainties for the Venezuelan operations of U.S.-based companies. Our Spanish subsidiary, FMC Foret, holds a noncontrolling interest in a Venezuelan joint-venture named Tripoliven. The value of this investment on our consolidated balance sheet at December 31, 2010 is approximately $9 million. While the receipts of collecting dividends from this entity have slowed, we continued to receive dividends from the entity during 2010. We do not believe there is any impairment of the entity at December 31, 2010 and, in light of the facts and circumstances noted above, will continue to monitor this situation. The risks associated with this entity would have an immaterial impact on our liquidity or consolidated financial position but could result in an impact to our results of operations in any one period in the form of an impairment charge. 

