American Vanguard Updates Outlook for 2006 and Expresses Optimism about 2007.Company to Host Conference Call Tomorrow, September 29th, at 12:00 Noon ET 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 provided an update on the Company's expectations for fiscal year 2006, and expressed optimism about 2007. In the Company's second quarter news release dated August 7, 2006, it noted four factors that would affect its performance for 2006. Below is an update on those factors: 1) Corn insecticides - This remains a variable. While the acceptance of genetically modified genetically modified Adjective (of an organism) having DNA which has been altered for the purpose of improvement or correction of defects genetically modified genetic adj [food etc] → corn appears to be growing, opinions in the market are mixed as to the impact on traditional insecticides. During the third quarter, American Vanguard initiated some new programs to generate additional SmartBox([R]) sales, and it continues to position SmartBox insecticides as the products of choice for treating the 'refuge acres' (that portion of a corn field that is not allowed to be planted with a genetic variety). 2) Bidrin([R]) cotton insecticide insecticide Any of a large group of substances used to kill insects. Such substances are mainly used to control pests that infest cultivated plants and crops or to eliminate disease-carrying insects in specific areas. - Insect pressure did not materialize and continued to run below historic levels. 3) Dibrom([R]) crop protection insecticide and mosquito adulticide - The Company has had steady sales from this product, but there have not been any major storms to create additional demand. 4) Impact([R]), new 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. - The Company is very pleased with Impact's performance in its initial 2006 year. 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, "Based on the current status of these variables as well as our overall business, for fiscal year 2006 we expect net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight to be 4-7% higher than the 2005 level of $190 million. We expect the benefit of these increased sales to be more than offset by increased operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , primarily energy and transportation costs, coupled with higher interest and tax rates. As a result, we anticipate net income to be 8-15% lower than last year's level of $19.0 million. "Nevertheless, our business model certainly remains sound, and we are very optimistic about achieving substantially stronger results in 2007. We anticipate the primary drivers of growth next year to be: * A continued ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale of Impact, which is performing extremely well in the field. We are on target for this to become one of our top five products next year. * A return to historic sales levels of Bidrin and Dibrom, based on normal pest pressure and rainfall. * Further additions to our product line. We are actively working on several opportunities, which should be strong contributors to our 2007 results." Conference Call Eric Wintemute, President and CEO, and James Barry James Barry may refer to:
About American Vanguard American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. The Company's basic strategy is to acquire brand name, niche product lines from larger companies that divest mature products to focus on newly discovered molecules. 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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