This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

American Vanguard Expects Channel Inventory To Affect Fourth Quarter And Full Year 2013 Performance

American Vanguard Corporation (NYSE:AVD) today announced that elevated channel inventories, arising primarily from prolonged wet weather last spring in the midwestern United States, will affect its fourth quarter and full year 2013 financial performance. Net sales for the fourth quarter of 2013 will be approximately 30% below those of the comparable period in 2012, and we anticipate reporting net earnings that are break-even plus or minus a few cents per share for the quarter. In comparison to full-year 2012 results, net sales for 2013 are expected to be up about 5%, and net income will likely be flat to down 15%.

As was reported by the Company last June, persistent wet weather affected both the corn and cotton markets during the 2013 planting season. Following two years of strong growth, distributors and retailers increased purchases in anticipation of another strong growth season. However, a shortened planting period coupled with a reduction in planted acres, particularly in high pest-pressure acreage, resulted in reduced use of many products and surplus inventory in the distribution channel. Despite these challenges, on-the-ground use of our SmartBox soil insecticides increased 38% year-over-year. In light of inventory levels in the channel, some of our customers are curtailing their normal fourth quarter purchases. The company expects that demand will pick up strongly next quarter as inventories move through the channel.

Eric Wintemute, Chairman and CEO of American Vanguard, stated, “Our corn products have been key drivers for our growth over the past three years. Consequently, a shift in demand in this market tends to have a disproportionate effect upon our overall financial performance. At present, everyone in our sector is experiencing a hardening of the market for a range of corn inputs arising from surplus inventories that were accumulated after the inclement planting season earlier this year. Ironically, many of the products in their inventory had been in such high demand at the start of the 2013 season, that they were placed on allocation by their suppliers. Now that supply has caught up with current demand, distribution has found it necessary to manage its inventory levels much more closely in the short term. Based upon discussions with our customers, we expect continued growth for our corn products. We therefore consider this to be a temporary market condition. We remain in close contact with our channel partners and stand ready to address the needs of the market as the new planting season unfolds. We will be answering questions on this matter during our investor call set for later today.”

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%
YHOO $36.60 0.03%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs