AgroPages-AMVAC sales down 21% in Q2 2014-Agricultural news

American Vanguard's sales fell by 21.3% to $68.3 million in the second quarter of 2014. Net income dipped greatly by 98.3% from the same period last year to just $145,000.

For the first half of 2014, sales was down 28.3% to $149.4 million, while net income plunged by 90.9% to $2.3 million, compared to $25.3 million from the first half of 2013.

Amvac sales result ($ 000)
Q2 ended June 30	Q2 2014	Q2 2013	% changes	H1 2014	H2 2013	% changes
Net sales	68,313	86,761	-21.3	149,408	208,298	-28.3
Net income (loss)	145	8,386	-98.3	2,304	25,301	-90.9

Eric Wintemute, Chairman and CEO of American Vanguard, stated: “As we previously reported, surplus inventory of corn products in the agriculture distribution channel resulted in significantly lower re-stocking procurement from manufacturers this season. Additionally, as we indicated, reduced production of these products in our manufacturing facilities has resulted in increased unabsorbed fixed factory costs which have negatively impacted profitability for the quarter and year to date.”

Outlook

Mr. Wintemute said “We believe that channel inventories have been reduced significantly this spring and that more normal purchasing patterns are likely to resume for the 2015 season which should start later this year and into the pre-planting months of 2015. We are undertaking cost reduction programs to right-size our manufacturing function with the product demand that we are forecasting. We have trimmed our operating expenses and will remain disciplined in our capital expenditures. We look forward to providing additional color on business and financial conditions in our earnings call later today.”