American Vanguard (AVD) Misses Q2 EPS by 2c, Sales Miss

American Vanguard (NYSE: AVD) reported Q2 EPS of $0.01, $0.02 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $68.3 million versus the consensus estimate of $73.07 million.

Eric Wintemute, Chairman and CEO of American Vanguard, stated: “As we previously reported, surplus inventory of corn products in the agriculture distribution channel resulted in significantly lower re-stocking procurement from manufacturers this season. Additionally, as we indicated, reduced production of these products in our manufacturing facilities has resulted in increased unabsorbed fixed factory costs which have negatively impacted profitability for the quarter and year to date.”

Mr. Wintemute concluded: “We believe that channel inventories have been reduced significantly this spring and that more normal purchasing patterns are likely to resume for the 2015 season which should start later this year and into the pre-planting months of 2015. We are undertaking cost reduction programs to right-size our manufacturing function with the product demand that we are forecasting. We have trimmed our operating expenses and will remain disciplined in our capital expenditures. We look forward to providing additional color on business and financial conditions in our earnings call later today.”

For earnings history and earnings-related data on American Vanguard (AVD) click here.

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