Alamo Sales Top $1 Billion
Announces Acquisition

Alamo Group has reported results for the fourth quarter and year ended Dec. 31.

For the year, net sales increased by 10.6 percent and topped $1 billion, which was a record. Net income for the year also set a record, rising by 65.8 percent to $73.5 million.

Quarterly net sales increased by 5.3 percent overall, establishing yet another record, although agriculture declined by 1 percent. On the year, agriculture net sales increased by 3.4 percent.

Group President and CEO Ron Robinson characterized ag sales as “up modestly” and said “margins held steady despite the market challenges.”

“Our Bush Hog, Rhino and Schulte operations all produced solid results for the year,” he said, “though we are concerned the market conditions are likely to continue to constrain results as we move into 2019.”

Robinson also said the company’s “accomplishments for the year were realized against a backdrop of significant challenges including above average increases in many input costs such as energy, freight, steel and other components as well as higher tariffs that contributed to cost inflation.”

In other news, Alamo Group has agreed to acquire 100 percent of the outstanding capital shares of Dutch Power Company B.V., a privately held equipment manufacturer based in the Netherlands.

Dutch Power designs, manufactures and sells a variety of landscape and vegetation management machines and attachments under brand names such as Herder, Conver, Roberine, Votex and Precision Makers.

“This is a mature, well-managed company with excellent products that complement Alamo’s existing lines of equipment,” Robinson said. “This acquisition enhances our platform for growth by increasing both our product portfolio and our capabilities in the European market.”

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