American Vanguard Q4 2019 Earnings Report
Key Takeaways
American Vanguard reported fourth quarter 2019 financial results with net sales of $131 million and net income of $3.4 million, compared to $131 million and $7.4 million respectively in the fourth quarter of 2018. The company's international business drove revenue growth, offsetting weather-related declines in domestic sales. The company is targeting global revenues to grow at a low double-digit rate in 2020.
Net sales remained flat at $131 million compared to Q4 2018.
Net income decreased to $3.4 million from $7.4 million in Q4 2018.
Earnings per diluted share declined to $0.12 from $0.25 in Q4 2018.
EBITDA decreased to $12.0 million from $16.6 million in Q4 2018.
American Vanguard
American Vanguard
Forward Guidance
Assuming normal weather patterns and minimal disruption in trade and supply from COVID-19, the company is targeting global revenues to grow at a low double-digit rate.
Positive Outlook
- Larger corn acreage in the U.S.
- Renewed availability of bromacil herbicides
- Ten new product introductions
- Growth of LATAM businesses
- Continued financial discipline to strengthen the balance sheet
Challenges Ahead
- Adverse weather conditions
- Disruptions in trade
- Disruptions in supply from COVID-19
- Tariffs
- Supply disruptions