US weather dampens Amvac's Q2 expectations
Delayed planting due to wet conditions in the US has had an adverse effect on US agrochemical company American Vanguard's expected second-quarter results. While sales are expected to exceed those recorded in the second quarter of 2012, they will be lower than forecast. The impact on earnings is uncertain at this stage but revenues and earnings are likely to be below those expected by analysts, the company points out. Sales of the post-emergence maize herbicide, Impact (BASF's topramezone), are expected to be "considerably higher" than in the same period last year, but below forecasts. Some sales are likely to shift from the second quarter to the third quarter. The wet conditions have reduced cotton plantings, with some analysts pointing to a 25% drop, Amvac notes. Sales of the company's cotton insecticide, Bidrin (dicrotophos), and its cotton defoliant, Folex (tribufos), are therefore expected to be "well below" forecasted levels. The company's sales grew by over 39% to $121.5 million in the first quarter of this year (Agrow No 664, p 7).