AMVAC sales up 32% in Q1

Positive conditions in the U.S. agricultural sector and the growing demand for granular soil insecticides boosted American Vanguard Corporation’s (AMVAC) first quarter sales to $87.3 million, up by 32.1% compared with the same period of last year. Gross profit margins rose to 43% as we achieved improved overall factory utilization rates. Operating expenses as a percentage of sales were held to 26%, despite higher regulatory expenses and freight costs that kept pace with company’s expanding export business. Stronger sales, improved gross margins and operating expense management enabled AMVAC to improve their bottom line significantly.

Eric Wintemute, Chairman and CEO of American Vanguard, stated, “We are seeing renewed demand for the use of granular soil insecticides in the U.S. corn market, as growers combat strong pest pressure from both primary and secondary insects. The use of our corn soil insecticides in conjunction with genetically modified seeds as part of an integrated pest management program provides the most comprehensive defense against the full range of soil insects and can enhance harvest yields. American Vanguard has the largest offering of corn soil insecticides along with the most advanced, closed delivery equipment for safely and efficiently dispensing these products.”

Mr. Wintemute concluded, “Our performance during the quarter serves to validate our long-standing belief that conventional chemistry is an essential part of integrated pest management. We are, of course, pleased with these results and look forward to giving additional color during our earnings call on the period.”

American Vanguard’s sales results ($000)
Q1 ended March 31, 2012	2012	2011	change%
Sales	87,255	66,033	+32.1
Operating income	14,402	9,187	+56.8
Net income	8,734	5,012	+74.3