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Farm Chemcial Maker American Vanguard Warns on Q1

Newport Beach-based farm chemical maker American Vanguard Corp. said Tuesday that bad Midwest weather could cause first-quarter results to fall short of last year’s levels.

The company, which counts yearly sales of about $225 million, didn’t offer a specific forecast for quarterly results, which are due in early May.

Sales are expected to be near what they were a year earlier, while earnings could come in lower because of weather and costs related to growth initiatives, the company said.

In 2007’s first quarter, American Vanguard saw sales of $40.9 million, an operating profit of $5.4 million and a net income of $2.1 million.

Analysts had been expecting first-quarter sales of nearly $55 million and a profit of $2.6 million.

Shares of American Vanguard finished down about 10% with a market value of about $395 million.

A planting season delayed by rain and cold weather has delayed orders for American Vanguard chemicals that protect corn crops, the company said.

“We are confident that as corn planting occurs throughout the spring, much of our granular corn soil insecticide sales will be recognized in the second quarter,” Chief Executive Eric Wintemute said.

American Vanguard sells more than 30 insecticides, fungicides, herbicides and other products. The company buys chemicals from big companies that don’t want to focus on what they see as smaller product lines.

Since 2000, American Vanguard has bought 13 brands and seven licenses, mostly from larger companies that shed the products after buying other companies.

American Vanguard has been riding a bull market for corn.

Since 2005, the crop price of corn,the company’s main market,has risen more than 100%. Ethanol, which is made from corn, is fueling some of the higher prices.

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