Alamo Group Reports Quarterly, Annual Earnings

Net sales for the fourth quarter of 2021 at Alamo Group increased by 16.8 percent. Its backlog increased by 24.1 percent compared to the third quarter and 126.2 percent compared to the fourth quarter of 2021.

The company said its fourth quarter results “continued to be materially impacted by persistent pandemic-related headwinds including supply chain disruptions, cost inflation, and skilled labor shortages.”

For the year, net sales rose 14.7 percent.

At the beginning of the fourth quarter, Alamo Group began reporting operating results on the basis of two new segments—the Vegetation Management Division and the Industrial Equipment Division. Prior to the quarter, the segments were defined as the Industrial Division and Agricultural Division; there were subtle differences in what comprised each segment.

In the new vegetation management segment, fourth quarter net sales climbed by 27.4 percent. The year saw a 24.1 percent increase.

Full-year sales gains were driven primarily by improved sales in the forestry, tree care, land clearing and agricultural mowing segments.

Jeff Leonard, Alamo Group’s president and CEO, said this: “In the fourth quarter, the company continued to encounter many of the same opportunities, and challenges, we have faced throughout the year. Our markets remained strong, and we continued to experience robust demand for our products in both of our operating divisions, and in every geographic region where we operate. Fourth quarter order bookings set a company record, and were nearly on par with the historically stronger third quarter. Full year 2021 order bookings improved by 43 percent compared to 2020.”

About supply chain challenges, Leonard said “fourth quarter results were again constrained by shortages and delays in delivery of many different types of components we require to manufacture our products. The ongoing coronavirus pandemic continued to disrupt our supply chain, and regrettably, also impacted the health of our own workforce. Labor shortages became somewhat more critical this quarter as the Omicron variant of coronavirus impacted our production teams, and those of our key suppliers as well. Shortages of hydraulic components became more acute and widespread this quarter and impacted nearly all of our production operations, across both divisions, to some extent.”