Amvac warns of Q4 decline
US agrochemical company American Vanguard (Los Angeles, California) has warned that fourth-quarter sales are likely to be about 30% lower than in the same period in 2012 while net earnings will be "break-even plus or minus a few cents per share". The company attributes the expected decline to reduced demand from some customers due to high stock levels. Distributors and retailers had increased purchases ahead of the spring season but prolonged wet weather in the US Mid-West resulted in reduced use of many maize and cotton products. "Our corn products have been key drivers for our growth over the past three years," says company chairman and CEO Eric Wintemute. "Consequently, a shift in demand in this market tends to have a disproportionate effect upon our overall financial performance."