American Vanguard Corporation (NYSE:AVD) today announced that it expects
the recent wet weather in the Midwest and Southeast United States to
affect its second quarter financial performance. Accordingly, the
Company anticipates that results for the second quarter of 2013 will not
meet the consensus revenue or earnings expectations published by
research analysts covering the Company. The Company believes that while
net sales for the quarter will likely exceed those of second quarter
2012, it is too early to quantify the impact on net earnings for the
period.
Because of the delay in planting caused by rain, quarterly sales of the
Company’s post-emergent herbicide, Impact, while considerably higher
than those of the comparable quarter of 2012, are below its forecasted
levels. The Company expects to see some demand for Impact shift from
second quarter to third quarter 2013, when weeds become more evident and
the product is in use. Further, wet conditions have caused a reduction
in the number of cotton acres planted in the U.S.; some analysts
estimate a reduction of 25% from 2012. Consequently, second quarter
sales of the Company’s Bidrin insecticide and Folex harvest defoliant
will be below forecasted levels. Demand for these products in subsequent
quarters will become much clearer in the coming months, and the Company
will report on their status during that period.
Eric Wintemute, Chairman and CEO of American Vanguard, stated, “At every
level of the supply chain, the crop protection industry is feeling the
effects of unfavorable spring planting weather. It is unfortunate that
adverse weather conditions are coming at a time when our products are
receiving such broad acceptance. However, we view this as a brief
downturn in our industry and expect that the strong, global demand for
food, animal feed, natural fiber and bio-fuels will continue to increase
the demand for greater agricultural productivity and yield enhancement.
This is our business, and we are well-positioned to serve this growing
market.”
American Vanguard
American Vanguard Corporation is a diversified specialty and
agricultural products company that develops and markets products for
crop protection and management, turf and ornamentals management and
public and animal health. American Vanguard is included on the Russell
2000® & Russell 3000® Indexes and the Standard & Poors Small Cap 600
Index. To learn more about American Vanguard, please reference the
Company’s web site at www.american-vanguard.com.
The Company, from time to time, may discuss forward-looking information.
All forward-looking statements are estimates by the Company’s management
and are subject to various risks and uncertainties that may cause
results to differ from management’s current expectations. Such factors
include weather conditions, changes in regulatory policy and other risks
as detailed in the Company’s SEC reports and filings. Any
forward-looking statements in this release represent the Company’s best
judgment as of the date of this release.
Copyright Business Wire 2013