Newport Beach-based American Vanguard Corp., a maker of insecticides, reported higher fourth-quarter profits and also said it bought a factory in Idaho.
Stronger sales of chemicals used by farmers for genetically modified crops were a boost in the fourth quarter, the company said.
“We are optimistic that corn growers will increasingly choose to embrace a ‘dual’ insect management approach by using our solution in concert with their genetically modified seed,” Chief Executive Eric Wintemute said in a statement.
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.
The company reported earnings of $7.6 million for the quarter, up 41% from a year earlier. Profits met Wall Street expectations.
Sales were up 26% to $69.1 million, just shy of analysts’ expectations of $70 million.
The Idaho factory, bought from Gustafson Corp. and Crompton Corp., will allow American Vanguard it to better serve farmers in the region, Wintemute said.
The price of the purchase was not disclosed.
American Vanguard will supply Germany’s Bayer AG for several years with some of the Bayer products already produced at the site.
American Vanguard also has facilities in Alabama and Missouri.
The company’s stock was up more than 3% in midday New York trading with a market value of about $400 million.
