Alamo Has Record 4Q

Alamo Group Inc., Seguin, TX, reported net sales in the fourth quarter at $147.0 million, compared to net sales of $132.7 million in the fourth quarter of 2010, an increase of 11%. Net income for the quarter was $7.4 million, versus net income of $4.1 million in 2010. The 2011 results include the acquisition of Tenco, which was completed in October 2011. They also include restructuring and non-cash items.

For the full year, net sales in 2011 were $603.6 million versus $538.5 million in 2010, an increase of 12%. Net income for the full year was $32.1 million, compared to $21.1 million in 2010, an increase of 52%. Excluding the effects of Tenco and the other adjustments in the 2011 fourth quarter referenced above, adjusted net sales for the full year were $596.6 million and adjusted net income was $29.4 million. The net sales and net income for both the fourth quarter and full year of 2011 were records for Alamo Group.

Alamo’s North American Agricultural Division net sales for the fourth quarter of 2011 were $43.5 million, an increase of 6% versus net sales of $41.1 million in the prior year’s fourth quarter. For the full year, the division’s net sales were $204.0 million in 2011 compared to $181.3 million in 2010, an increase of 12%. This division’s results were positively impacted by the overall improvements in the global agricultural market.

The company’s European Division net sales in the fourth quarter of 2011 were $39.2 million compared to net sales of $39.5 million in the comparable period of 2010, a decrease of 1%. For the full year, the Division’s net sales were $170.0 million in 2011 versus $160.4 million in 2010, an increase of 6%. Despite some areas of strength, sales in the fourth quarter were hampered by generally weak economic conditions throughout Europe.

“Looking ahead to 2012, we expect to generate further growth in sales and earnings, even if economic conditions don’t improve. We should continue to benefit from the general strengthening in the agricultural sector across both North America and Europe and we believe our governmental end users in our major markets should show some resilience as the demand for maintaining infrastructure continues at a much steadier pace than other types of spending. Overall, we remain confident that our operating structure and financial strength combined with the breadth of our product offering and the quality of our markets will continue to support our prospects for the future,” said Ron Robinson, Alamo Group’s President and Chief Executive Officer.

In other news, Alamo filed a registration with the U.S. Securities and Exchange Commission to sell, from time to time, up to 4,532,300 shares of Common Stock on behalf of selling shareholders.

Alamo Group Agricultural Division, Association Member since 1952; alamo-group.com.