Alamo Group Inc. recently reported results for the quarter and year that ended Dec. 31. The company’s Agriculture Division “led the way” in a year that included record net sales.
For the fourth quarter, net sales in agriculture increased by 10.5 percent. Income from operations for the fourth quarter increased by 20.7 percent and 13.3 percent for the year.
Alamo’s overall net sales for the full year increased by 4 percent. Because of a decline in industrial net sales in the fourth quarter, the company saw a decline of 3.8 percent in overall net sales for the quarter.
A report from Alamo Group said that the ag divison “continues to benefit from somewhat improved overall market conditions that started in the second half of 2020 and has resulted in the division finishing the year with a record level of backlog that bodes well for the 2021 outlook.”
Backlog was up 35.6 percent compared to the end of 2019.
The company went on to say, however, that the division is “experiencing some operational issues related to the pandemic as well as longer lead times and cost inflation in purchased components.”
Alamo Group President and CEO Ron Robinson said this: “While operations have stabilized to a certain degree, new challenges continue to emerge. Lead times for input components are growing and we are seeing more inflationary pressures than we have seen for several years. The labor market is also tightening, particularly among certain skill sets such as engineers, mechanics and skilled shop floor workers. Transportation costs are rising and U.S. and international ports of entry are experiencing delays.”
Net income for the quarter was down 15.5 percent. Net income for the full year was down 10 percent.
The results for the fourth quarter and the full year included the effects of the acquisitions of Dutch Power, which was complete in March 2019, and Morbark, which was complete in October 2019.
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