Alamo Group recently reported first quarter 2022 net sales were $362 million compared to $311.2 million in the first quarter of 2021, an increase of 16.3%. Gross margin improved in the quarter compared to the first quarter of 2021 but was negatively impacted by continued higher material and transportation costs and supply chain disruptions which resulted in material shortages throughout the quarter. First quarter net income improved 5.8% to $18.5 million, or $1.55 per diluted share, compared to net income of $17.5 million, or $1.47 per diluted share in the first quarter of 2021.
The Company’s results for the first quarter continued to be materially impacted by persistent pandemic-related headwinds including supply chain disruptions, cost inflation and, to a lesser extent, skilled labor shortages.
Results by Division
The Vegetation Management Division had a strong first quarter of 2022 as markets remained solid and orders increased compared to the first quarter of 2021. The Division’s first quarter net sales were $221.0 million, up 20.2% compared to $183.9 million for the same period in 2021. The increase in sales was driven by strong retail demand for agricultural, forestry, tree care, and governmental mowing products in both North America and Europe.
The Division's income from operations for the first quarter 2022 was $18.3 million, up 9.5% compared to $16.8 million for the first quarter of 2021. Complementing a very strong performance from its North American operations, were positive results in the United Kingdom, France, Brazil and Australia. The Division was negatively impacted by supply chain issues, higher material and freight costs and related surcharges which eroded margins and contributed to lower manufacturing efficiencies.
The Industrial Equipment Division’s first quarter 2022 net sales were $141.0 million, up 10.8% compared to the same period in 2021. The increase was primarily attributable to higher sales of its excavators and vacuum truck products and, to a lesser extent, other product lines within the Division. Net sales and new orders for both industrial and governmental customers were strong for the first quarter of 2022. Delays in planned deliveries of medium duty truck chassis, other industrial engines, axles and transmissions significantly impacted the Division in the quarter
The Division’s income from operations for the first quarter of 2022 was $10.8 million, up 24.1%, compared to $8.7 million, for the first quarter of 2021. The Division was negatively impacted by supply chain problems and higher material and inbound freight costs.
Post a comment
Report Abusive Comment