Alamo Group has reported record net income for a first quarter of US$17.5 million, up 12.5%.
The company’s Agricultural Division net sales in the first quarter of 2021 were US$99.3 million compared to net sales of US$84.5 million in the first quarter of 2020, an increase of 17.5%.
The Agricultural Division’s first quarter results benefited from the overall strengthening of the agricultural market that began in the second half of 2020 and the company’s growth in sales and operating income was achieved despite inflationary pressures and sporadic supply chain limitations.
Ron Robinson, Alamo Group’s president and CEO, commented on the first quarter results as follows, “We are very pleased with Alamo Group’s 2021 first quarter results. While our sales were slightly below last year’s record first quarter levels, our earnings showed solid improvement and finished at record levels for a first quarter helped by lower operating and interest expenses.
“This was achieved despite the many challenges that continue to affect us and most industrial equipment manufacturers these days. These are certainly interesting times with the lingering issues related to the COVID pandemic, a variety of supply chain challenges, disruption with logistics and more inflationary pressure than we have experienced in the last several years.
“Yet, despite all of these issues our business is rebounding nicely from the economic downturn that began a little over one year ago spawned by the pandemic.
“We are particularly pleased to see the improvements in our Agricultural Division’s first quarter results. Market conditions in this sector had been weak for the last several years but started to show improvement in the second half of 2020 despite the pandemic. Bookings and backlog have continued to rebound helped by improving agricultural commodity prices and higher levels of government subsidies. With a record backlog, low dealer inventory levels and rising agricultural commodity prices, we feel the upturn in this market should continue well past the current year.”
