Amvac sales up 23% in Q3

Sales of American Vanguard (Amvac) increased by 23% to $90.8 million in the third quarter of 2011 ended September 30th. Net income was improved by 75% to $8.1 million. For the first nine months, sales rose by 20% to $262.8 million and net income was boosted by 75% to $25.6 million. The good performance reflected continued strong demand for the company’s products and excellent profitability of business. This quarter’s results were driven by participation in cotton and seasonal sales of soil fumigants for post-harvest applications. Sales also included initial shipments of granular soil insecticides in response to grower demand ahead of the 2013 planting season, comments Eric Wintemute, Chairman and CEO of American Vanguard.

The continuing trend of profitability improvement, as a higher-valued product mix, selective price increases and solid manufacturing performance all contribute to higher gross profit margins. The company’s finished goods inventory and accounts receivable levels have both risen, in response to the production associated with the pre-season sales build-up for the upcoming corn planting season. “Notwithstanding the current strong growth the Company is experiencing, we continue to have sufficient cash and credit available for capital expenditures and/or potential product acquisitions that we may undertake in the coming quarters.” said Eric Wintemute.

Mr. Wintemute concluded: “Our business segments continue to perform well. Looking forward, we believe that much of our growth will be driven by the continuing adoption of our Best-of-Both-Worlds approach for soil insect control and by the success of our Impact® herbicide co-marketing program with Monsanto’s Roundup brands. Our marketing programs will be emphasizing AMVAC’s Yield Enhancement Solutions (YES®) not only for U.S. corn growers but for all of our customers in all of the crop markets that we serve. As critical components of advanced Integrated Pest Management (IPM) systems, our proven crop protection portfolio should support American Vanguard’s continued top-line growth, its strong profitability and the sustainable use of our products in keeping with modern agricultural practices.”