Alamo Group Reports Record Q1 Sales and Earnings
Alamo Group Inc. has reported results for the first quarter ended March 31, 2022.
First quarter 2022 net sales were $362.0 million compared to $311.2 million in the first quarter of 2021, an increase of 16.3%. Gross margin improved in the quarter compared to the first quarter of 2021, but was negatively impacted by continued higher material and transportation costs and supply chain disruptions which resulted in material shortages throughout the quarter.
First quarter net income improved 5.8% to $18.5 million, or $1.55 per diluted share, compared to net income of $17.5 million, in the first quarter of 2021. The Company completed an excise tax audit covering a 5-year period which resulted in a one-time $1.3 million expense in the first quarter of 2022. Excluding this charge, adjusted net income was $19.4 million. The Company’s backlog at the end of the first quarter of 2022 was $917.8 million, an increase of $465.3 million, or 102.8%, from the backlog at the end of the first quarter of 2021, and up 14.6% from the end of calendar year 2021.
The Company’s results for the first quarter continued to be materially impacted by persistent pandemic-related headwinds including supply chain disruptions, cost inflation and, to a lesser extent, skilled labor shortages.
The Vegetation Management Division had a strong first quarter of 2022 as markets remained solid and orders increased compared to the first quarter of 2021. The Division’s first quarter net sales were $221.0 million, up 20.2% compared to $183.9 million for the same period in 2021. The increase in sales was driven by strong retail demand for agricultural, forestry, tree care, and governmental mowing products in both North America and Europe.
The Division’s income from operations for the first quarter 2022 was $18.3 million, up 9.5% compared to $16.8 million for the first quarter of 2021.
Complementing a very strong performance from its North American operations, were positive results in the United Kingdom, France, Brazil and Australia. The Division was negatively impacted by supply chain issues, higher material and freight costs and related surcharges which eroded margins and contributed to lower manufacturing efficiencies. Source: Company Release