American Vanguard “Relatively Unaffected” by Midwest DroughtThursday, August 2, 2012
Newport Beach-based American Vanguard Corp. boosted profit by 46% in the second quarter to $8.7 million compared with the same period a year ago.
The specialty chemical maker saw a 6% increase in sales to $84.8 million.
Its shares were trading up 1.8% during morning hours at a market value of roughly $686.2 million.
The company reported double-digit increases in revenue and profit for the first half of the year. Net income rose 59% to $17.5 million on revenue of $172.1 million, which reflected an increase of 18% from the year-ago period.
“Many of our products are used at the time of planting or early in the growing season and have been relatively unaffected by the persistent drought that has affected the Midwest and Southwest United States,” Chief Executive Eric Wintemute said. “Despite dry weather during the 2012 corn growing season, we continue to see strong demand for our products in anticipation of the 2013 season.”
He said the company expects “continued demand” for post-harvest fumigants and cotton insecticides, as well as mosquito control chemicals in wet-weather regions, in the third quarter.