American Vanguard net income drops 98 percent in first quarter

American Vanguard reported yesterday its first-quarter sales and net income dropped dramatically from a year earlier.

First-quarter sales of $66.6 million were down nearly 18 percent and net income fell nearly 98 percent, from $2.2 million to just $50,000 in 2015. Earnings per diluted share were zero compared with 7 cents in the first quarter of 2014.

Chairman and CEO Eric Wintemute said the sales decline was largely due to poor conditions in the corn market and lower international sales, although he is optimistic about the future. “With reduced inventory levels in the distribution channel and a just-in-time procurement approach by growers and retailers, we stand ready to meet our customers’ needs as the 2015 corn season continues to unfold,” Wintermute said.

In the short- and mid-term, the company plans to concentrate its business on other crops and regions. It recently completed two acquisitions to help expand internationally – the Nemacur product line from Adama and the Bromacil product line from DuPont.

“We believe that these acquisitions will expand our annual international sales by over 25 percent and give us an increased presence in Europe, Asia and Latin American,” Wintermute said.

Wintermute said during the rest of 2015, the company’s performance will depend on sales into potatoes, cotton, peanuts, vegetables, as well as corn, and non-crop markets, such as public health. The company also is trying to acquire new active ingredients, to expand market access of its natural oil product line, and to acquire license rights to biological and other crop protection products.

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American Vanguard Corporation

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