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RSSBush Hog Acquisition Pays Off for Alamo Group
THE ASSOCIATED PRESS
SEGUIN, Texas -- Alamo Group Inc. harvested a fourth-quarter profit as the mowing equipment manufacturer's agricultural division got a boost from a recently completed acquisition.
The company said Monday that it earned $8 million, or 70 cents per share, during the final three months of last year. That reversed a loss of $1.9 million, or 19 cents per share, in the same 2008 period.
Revenue fell 8 percent to $112.8 million because of weak demand in Alamo Group's industrial products division.
But the company's agricultural sales surged 15 percent to $29.2 million. The acquisition of another mowing equipment manufacturer, Bush Hog, accounted for nearly $11 million of the division's revenue gain.
Alamo Group bought Bush Hog for 1.7 million shares valued at about $27 million when the deal closed in October.
If not for the benefits and costs of the Bush Hog deal, Alamo Group said it would have earned $4 million, or 35 cents per share.
For all of 2009, Alamo Group earned $17.1 million, or $1.65 per share, on revenue of $446.5 million. In 2008, the company earned $11 million, or $1.11 per share, on revenue of $557.1 million.
