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Mar 31, 2021
Alamo Group Q1 2021 Earnings Report
Reported record net income for a first quarter and net sales decreased slightly.
Key Takeaways
Alamo Group's first quarter results showed a slight decrease in net sales but a record net income. The Agricultural Division saw significant growth, while the Industrial Division experienced a decrease in net sales. The company is optimistic about future performance, citing strong bookings and backlog.
Record net income for a first quarter of $17.5 million, up 12.5%.
Net sales for the first quarter of $311.2 million, down 1.0%.
Industrial Division net sales of $211.9 million, down 7.9%.
Agricultural Division net sales of $99.3 million, up 17.5%.
Revenue by Segment
Forward Guidance
Alamo Group anticipates that supply chain challenges will persist into the second quarter of 2021 but expects improvements in the second half of the year. The company remains optimistic about full-year results, driven by the rebounding economy and contributions from recent acquisitions.
Positive Outlook
- Strong and continuing improvements in bookings and backlog.
- Expect to be back to pre-pandemic levels of operations in the second half of the year, assuming supply chain challenges can be overcome.
- Full effect of the major acquisitions completed in 2019 - Morbark and Dutch Power.
- Benefit by a variety of synergies resulting from these acquisitions which have been ongoing in spite of the pandemic challenges.
- Recent economic stimulus package in the U.S. will certainly provide needed help to cities, counties and states who are the biggest end users of our Industrial Division's infrastructure maintenance equipment.
Challenges Ahead
- Supply chain challenges are expected to continue to impact results in the second quarter as much or more than in the first quarter.
- Operational delays due to COVID cases within work forces.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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