American Vanguard Expects Weather to Affect Second Quarter Performance
NEWPORT BEACH, Calif. -- June 24, 2013
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 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
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.
American Vanguard Corporation
William A. Kuser, 949-260-1200
Director of Investor Relations
The Equity Group Inc.
Lena Cati 212-836-9611
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