American Vanguard Corp. (NYSE: AVD), a Newport Beach provider of agricultural products, plummeted 29% after second-quarter results that it called unacceptable.
The company reported a loss of 42 cents a share as sales fell 3.2% to $128.2 million. The two analysts covering the company expected a 4 cents a share loss on sales of $133.6 million.
“The company does not find these results to be acceptable and is focused on changing direction with urgency,” Acting Chief Executive Timothy Donnelly said in a statement. “We have taken immediate steps to enhance liquidity and improve our cost structure.”
The company slashed its annual forecast to sales of $565 million to $580 million, while the two analysts expected $597 million.
The company said it entered today into an amended credit facility with its lenders to relax its covenants and improve its borrowing capacity. The company reported $17.9 million in cash as of June 30.
It also cut its 845-employee workforce by 4% and set out to improve its cash position and reduce its inventory.
After the announcement, shares dropped 29% to $5.80. During regular hours, they had risen 4.1% to $8.19 and a $229.2 million market cap.
