American Vanguard's sales increased by 9% in Q2 2016

American Vanguard's sales increased by 9% to $72.7 million in the second quarter of 2016. Net income increased to $3.2 million from $0.8 million in this quarter.

For the first half year of 2016, American Vanguard's sales increased 7% to $142.2 million from $133.1 million,and net income increased to $6.0 million from $0.8 million.

Eric Wintemute, Chairman and CEO of American Vanguard, stated: "Our improved second quarter and mid-year performance reflects both external sales initiatives and internal management discipline. While the Ag Industry continues to experience strong headwinds, we are pleased with our ability to deliver revenue growth of 9% quarter-over-quarter and significantly increased net income. Top line improvement was driven by sales of our corn soil insecticides and Impact post-emergent corn herbicide as well as higher sales of our non-crop products. Earnings rose as a result of higher gross profit margins attributable to improved manufacturing efficiency and favorable product mix."


Mr. Wintemute added: "We continue to strengthen our balance sheet by focusing on carefully managing inventories and other working capital factors. Our strong cash generation has allowed us to reduce debt, enhancing our ability to grow through acquisition and pursue international initiatives, such as our recently announced Hong Kong based technology joint-venture."

Mr. Wintemute concluded: "The balance of 2016 looks favorable with expected demand for our cotton products amidst this year's 17% increase in domestic cotton acreage, our historically stable fumigant market and weather-dependent demand for our mosquito adulticide Dibrom. All-in-all, we had a solid quarter and will continue to build on that foundation over the course of the year."