AMVAC sales up 4% in Q1 2016

Date:05-06-2016

American Vanguard's sales increased by 4.4% to $69.5 million in the first quarter of 2016. Net income reached $2.79 million compared with $0.05 million of the same period of 2015.

Eric Wintemute, Chairman & CEO of American Vanguard commented: "Net sales increased during the period, led by our expanding international business. We achieved significantly better earnings in the quarter as a result of increased sales and focused management discipline regarding manufacturing costs and operating expenses. Additionally, we were able to invest in a new biological technology platform while further reducing debt."

Mr. Wintemute continued: "While the Midwest corn market remained stable year-over-year, we benefited from our broad participation in other crops and global regions. In particular, the two herbicides that we acquired last year have helped expand our international business and allowed us to enter the U.S. soybean market for the first time. In addition, we recorded improved sales in the cotton market, driven by this year's rise in cotton acreage."

Mr. Wintemute concluded: "During the balance of this year, we expect our performance to be defined by demand for our corn herbicide Impact, sales of our Thimet insecticide in peanuts and sugar cane, post-harvest application of our soil fumigants, and continued expansion of our international business. We also expect to benefit from stronger fruit and vegetable sales resulting from the improvement in western U.S. drought conditions.

Dibrom mosquito adulticide sales will be weather dependent, but may get additional traction in light of recent public health concerns. We look forward to giving you more detail regarding first quarter results in our upcoming conference call."