Alamo Group’s net sales for the first quarter of 2020 increased by 20 percent compared to the same quarter in 2019. Net income for the quarter increased by 1.8 percent.
The results for the first quarter include the effects of the acquisition of Dutch Power, which was completed in March 2019, and the acquisition of Morbark, completed in October 2019.
Net sales for the company’s Agricultural Division decreased by 4.4 percent. The division’s income from operations was flat on a comparative basis.
The company said its results for agriculture were improving during the first quarter compared to the challenging past several years, but the trend turned negative in March as a result of the COVID-19 pandemic.
The division’s North American units, which benefited from the contributions of Dixie Chopper, held up reasonably well. The company’s agricultural units in England and France experienced temporary plant closures in March, which caused the decline in the division’s overall results.
President and CEO Ron Robinson characterized the results as “reasonable” given “the unprecedented situation in which we are now operating.”
He also sid supply chain disruptions have “marginally affected” Alamo Group but have not “materially impacted” production.
“In general we are pleased that as of today, all of our major facilities are operating at some, though varying, levels of production,” he said.
The company estimates sales in the second quarter could be off as much as 10 to 15 percent from the levels achieved in the first quarter of 2020.
Source: PR Newswire