American Vanguard Provides Business Performance Update.Adverse Weather Influences First Quarter 2008 Results; Delayed Corn Insecticide Sales Expected to be Recognized in the Second Quarter NEWPORT BEACH Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. , Calif. -- American Vanguard Corporation (NYSE NYSE See: New York Stock Exchange : AVD AvD Automobilclub von Deutschland (German automobile club) AVD Academy of Veterinary Dentistry AVD Audio Video Design (Melbourne, FL) AVD Audio Video Data AVD Association des Volontaires pour le Développement ), today announced that adverse mid-west weather conditions will likely cause first quarter 2008 performance to be below that of the prior year first quarter. While sales are expected to approach prior year levels, earnings will likely be impacted by higher incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. associated with several important new growth initiatives. Eric Wintemute, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Vanguard, stated, "As has been widely reported, over-abundant rainfall and continued cold temperatures have significantly affected preparation for and implementation of crop planting in large sections of the mid-west Corn Belt Corn Belt, major agricultural region of the U.S. Midwest where corn acreage once exceeded that of any other crop. It is now commonly called the Feed Grains and Livestock Belt. . This delay in planting has deferred the drawdown Drawdown The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Notes: of existing chemical inventories staged in distribution channels and also postponed typical replenishment orders that generally occur during the later weeks of the first quarter. We are confident that as corn planting occurs throughout the Spring, much of our granular corn soil insecticide sales will be recognized in the second quarter of 2008." Mr. Wintemute added, "As we have highlighted in recent conference calls and on our corporate website, our programs for insect resistance management and corn yield enhancement are both expected to be very significant contributors to our future growth. As corn growers increasingly recognize the critical importance of "refuge acre" compliance (required by the EPA EPA eicosapentaenoic acid. EPA abbr. eicosapentaenoic acid EPA, n.pr See acid, eicosapentaenoic. EPA, n. and endorsed by the producers of genetically modified corn seed) and come to appreciate the highly-profitable yield enhancement of using our granular insecticide treatments in conjunction with their genetically modified seeds, American Vanguard is ideally positioned to capitalize on both of these developing trends." "Additionally, American Vanguard offers an exceptional corn herbicide herbicide (hr`bəsīd'), chemical compound that kills plants or inhibits their normal growth. A herbicide in a particular formulation and application can be described as selective or nonselective. Impact[R] to complement the traditional widespread use of glyphosate-based weed treatments. This year's inclement in·clem·ent adj. 1. Stormy: inclement weather. 2. Showing no clemency; unmerciful. in·clem weather may result in lighter-than-normal use of pre-emergent herbicides and accentuate the use of post-emergent products such as Impact[R]. Also, an apparent industry-wide (worldwide) shortage of glyphosate glyphosate herbicide and desiccant for grains. Heavy doses to birds cause soft shells on their eggs. may further necessitate the use of alternative herbicides, making Impact[R] a likely beneficiary." Mr. Wintemute, concluded, "It is important to note that, the non-corn portions of our business are experiencing solid performance in the first quarter and we expect that this year's demand requirements in potatoes, vegetables, fruits, and turf and ornamental should offset the potential for continued softness in the cotton market caused by diminished acreage. We will have further information on first quarter business and financial performance during our quarterly earnings conference call scheduled for May 8, 2008." About American Vanguard American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection management, turf and ornamentals management, and various public and animal health applications. American Vanguard is included on the Russell 2000[R] and Russell[R] 3000 Indexes. To learn more about American Vanguard, please reference the Company's web site at www.american-vanguard.com. The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company's management and are subject to various risks and uncertainties that may cause results to differ from management's current expectations. Such factors include weather conditions, changes in regulatory policy and other risks as detailed from time-to-time in the Company's SEC reports and filings. All forward-looking statements, if any, in this release represent the Company's judgment as of the date of this release. |
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