Alamo Reports Good Quarter Despite Weak Ag Sales

Net sales for the first quarter of 2015 for the Alamo Group were $207.8 million, which is a 20% increase over sales for the same quarter last year. Net income for the quarter was $7.4 million. Both numbers set record highs for the manufacturer’s first quarter.

Sales of agriculture equipment did not contribute to this strong showing. Alamo Group’s North American Agricultural Division reported a 5% decrease in first quarter net sales, falling from $50.8 million in 2014 to $48.5 million this year.

Ron Robinson, Alamo Group’s President and CEO, said he expects the weakness in agriculture equipment sales to continue through 2015.

“While the results for the first quarter of 2015 were a record for Alamo Group, in both sales and earnings, there were certainly headwinds that affected the company’s performance,” Robinson said. “Our North American Agricultural Division continued to experience weak market conditions which have been impacting this sector for more than a year. Despite lower sales, (which reflect) declines in overall farm incomes, the Division is holding up better than many other agricultural equipment manufacturers, particularly those focused heavily on row crops.”

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