Alamo Group Sees Dip in Income in Q2
Alamo Group has reported results for its second quarter ended June 30.
Net sales in the Agricultural Division were down by 5 percent for the second quarter and 4.7 percent for the first half of the year. The division’s income from operations for the first six months increased by 6.2 percent as a result of cost control and a favorable product mix.
Overall, net sales for the second quarter were down by 5.8 percent. The company’s Industrial Division saw a 6.2 percent decline in net sales.
The ag division’s results have been impacted by COVID-19, though to a lesser extent than the industrial side. The ag division’s North American operations have held up better in the short term than European operations, which experienced more operational and demand issues, the company said.
In March and April, Alamo closed multiple plants as a result of the pandemic, most in France and England, and to a lesser extent, the U.S. and Canada. The plants have reopened.
Out of a workforce of approximately 4,270 employees at the beginning of 2020, the company at the end of June had 550 workers on some form of a furlough or temporary layoff and had reduced its workforce by an additional 200.
The company said that, supported by its supply chain, it was functioning normally though at a reduced level.
“While our second quarter results were down, given the environment in which we continue to operate, they were in line with our expectations,” said Ron Robinson, Alamo Group’s president and CEO. “I am proud of all the dedicated people at our company who have worked so hard to achieve these results, given the many operational challenges we experienced …”
Source: Alamo | Member since 1952 | Alamo-group.com