Alamo Group Inc. last week reported results for the fourth quarter and year ended December 31.
For the quarter, overall net sales increased by 17.2 percent compared to the same quarter last year. In agriculture, net sales for the quarter were down by 7.5 percent.
For the year, overall net sales increased by 10.9 percent with net sales in agriculture falling by 5.4 percent.
The results for 2019 included the effects of the Dutch Power and Morbark acquisitions.
President and CEO Ron Robinson described 2019 as “a year of great accomplishments for Alamo Group, along with several challenges that impacted our results more than we anticipated. Certainly, the accomplishments, largely dominated by three acquisitions including our largest ever, Morbark, greatly increase our platform for future growth and broadens our product offering in a complementary way that takes us into some new, but related markets.”
Specific to agriculture, Robinson said the company saw a 45.9 percent increase in bookings compared to the fourth quarter of 2018.
“While this is certainly not a trend, any improvement in the agricultural market is a welcome development,” he said.
Robinson also discussed developments in products and operations at Alamo, and Executive Vice President and CFO Dan E. Malone updated stakeholders on how the coronavirus is affecting the company.
Malone said Alamo buys between $40 million and $50 million in component parts from China. Most of these parts can be sourced from elsewhere, but there are exceptions.
“Most of our agricultural division sales would be exposed through such a disruption,” he said. “But as of today, our major suppliers are back up and running, they’re not necessarily at full staff.”
Alamo is anticipating delays and actively pursuing alternative sourcing options, he said.
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