American Vanguard Corp. reported a sharp increase in sales and profit in the second quarter, despite higher costs for debt and its freight, delivery and warehouse operations.
Shares of the Newport Beach company, which sells chemicals, insecticides and fertilizers for farming and other uses, were down 7.3% to $13.50 on Monday.
American Vanguard said sales increased 14% to $42.7 million, versus a year earlier. Despite the higher costs, the company said its net income grew 21% to $3.3 million.
The company pointed to a couple of challenges ahead. Sales of American Vanguard’s corn soil insecticide could be negatively affected by the acceptance of genetically modified corn. And its cotton insecticide sales could be impacted by a lower-than-usual amount of insects in the third quarter.
American Vanguard said it was seeing better-than-expected results from its crop protection insecticide and mosquito adulticide, as well as its corn herbicide launched earlier this year.
