Alamo Group Announces Record 2Q Results

Alamo Group Inc., Seguin, TX, reported results for the second quarter ended June 30, 2011. Net sales for the quarter were $160.8 million, compared to net sales of $138.1 million in the second quarter of 2010, an increase of 16%. Net income for the quarter was $8.9 million, versus $4.9 million for the same period of 2010. The 2011 sales and net income were records for Alamo’s second quarter results, as the company experienced growth in all three segments of its business.

For the first six months of 2011, net sales were $301.5 million, a 12% increase compared to 2010 six month net sales of $269.2 million. Net income in the first half of 2011 was $14.6 million, versus $8.9 million, for the first half of 2010. This is an increase of 64% in net income and 63% in net income per diluted share. The 2011 six month results were also a record for Alamo Group.

The company’s North American Industrial Division net sales for the second quarter were $59.3 million, an increase of 20% compared to the $49.6 million achieved in the prior year’s second quarter. For the six month period, net sales were $108.4 million in 2011 versus $96.7 million in 2010, an increase of 12%.

North American Agricultural Division net sales were $55.5 million in the second quarter of 2011 versus $47.0 million in the comparable period of 2010, an increase of 18%. For the first six months of 2011 net sales in the Division were $105.2 million versus $88.7 million in 2010, an increase of 19%. While growth in the overall agricultural market seems to be moderating somewhat, the company is still benefiting from generally favorable commodity prices, which should benefit Alamo’s results for the remainder of the year.

Ron Robinson, Alamo Group’s President and Chief Executive Officer said, “2011 continues to run ahead of both 2010 and our expectations. For the first time in several years, all of our Divisions showed an increase in sales. While the agricultural market continues to run ahead of last year’s pace, the markets for our industrial equipment in both North America and Europe, mainly sold to governmental entities for right of way maintenance, continue to be weak and constrained by budget cutbacks.”

Alamo Group has been a member of this Association since 1952. For more information go to alamo-group.com. ◆