Alamo Group reported record net income and record net sales for the quarter ended March 31.
Net sales increased by 10 percent, and net income increased by 4.6 percent.
By category, net sales in agriculture decreased by 9.3 percent. In the industrial division, net sales increased by 19.9 percent. Sales in the European division increased by 6.5 percent.
The results of the first quarter included the effect of the acquisition of Dutch Power, which was completed in March, although the records set in the quarter would have occurred without the acquisition.
President and CEO Ron Robinson said the agriculture division “had a slow start to the year as the softness in the overall agricultural market cotinues to drag on.” He said a prolonged winter also delayed the start of the planting season in parts of the United States.
“We feel this will show some improvement in the second and third quarters,” he said, “though farm incomes are still being constrained by low prices and excess inventory of key commodities.”
Beginning in the fourth quarter of 2019, Alamo Group will report operating results in two segments: industrial and agriculture. The reorganization is linked to the retirement of Geoffrey Davies, executive vice president and managing director of Alamo’s European division.
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