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Mar 31, 2020
Alamo Group Q1 2020 Earnings Report
Reported record first quarter results with increased net sales and net income despite the beginning of adverse impact from COVID-19 pandemic.
Key Takeaways
Alamo Group's first quarter 2020 results showed record net sales of $314.4 million, a 20% increase compared to the first quarter of 2019. Net income also reached a record $15.5 million, up 1.8% from the previous year. The results were positively influenced by recent acquisitions but adversely affected by the COVID-19 pandemic in March.
Record net income for the first quarter of $15.5 million, up 1.8%.
Record net sales for the first quarter of $314.4 million, up 20%.
Industrial Division net sales $230.0 million, up 32.5%.
Agricultural Division net sales $84.5 million, down 4.4%.
Alamo Group
Alamo Group
Alamo Group Revenue by Segment
Revenue by Segment
Industrial Equipment Division Revenue
CapyFin.com Forward Guidance
The company anticipates the adverse environment created by the COVID-19 pandemic will impact their second quarter results, with sales potentially down 10-15% from the first quarter. Order bookings need to improve in the second quarter to ensure sufficient orders for the second half of the year.
Positive Outlook
- Company's first priority is and will remain the health and safety of our employees.
- Company will continue to support the needs of our customers, in accordance with recommended standards for safety and hygiene in the workplace.
- Company believe we will continue to benefit from our relatively healthy backlog.
- Pleased that orders received in the first quarter were at a decent pace.
- Company is taking a number of actions to maintain our financial stability as a company.
Challenges Ahead
- Level of uncertainty remains high and it is impossible to predict in precise terms how our business will be affected.
- Adverse environment created by the COVID-19 pandemic, has continued into April and will certainly impact our second quarter results.
- Disruptions in our supply chain have marginally affected the Company's ability to perform.
- There were also a few order cancellations but even more customer requests for shipment delays.
- If the pandemic outlook starts to improve and manufacturing companies can start to operate in a more normal fashion in the second half of 2020, order bookings will have to improve during the second quarter to ensure we have sufficient orders to maintain economic operating levels.