Alamo Group Inc. (NYSE: ALG) today reported results for the third quarter ended September 30, 2011.
Net sales for the third quarter were $155.1 million compared to net sales of $136.7 million for the same quarter of 2010, an increase of 13%. Net income for the quarter was $10.1 million, or $0.84 per diluted share, versus $8.2 million, or $0.68 per diluted share, for the third quarter of 2010, an increase of 23%. The net sales and net income results represent record levels for Alamo Group as the Company experienced growth in all three segments of its business.
Net sales for the first nine months of 2011 were $456.6 million versus $405.9 million for the comparable period of 2010, an increase of 12%. Net income in the nine month period was $24.6 million, or $2.06 per diluted share, compared to $17.0 million, or $1.43 per diluted share, for the same period in 2010, an increase of 45%. The 2011 nine month results were also a record for Alamo Group.
Included in the results is the effect of reclassification of freight revenue. Freight billed to customers had previously been recorded as a reduction in cost of sales and has since been reclassified to sales. This change resulted in an increase in third quarter net sales of $4.5 million in 2011 and $4.4 million in 2010. For the nine month period this change resulted in an increase in net sales of $12.3 million in 2011 and $10.9 million in 2010. There was no impact on reported earnings in any period.
Alamo Group’s North American Industrial Division net sales for the third quarter of 2011 were $57.0 million, an increase of 19% compared to net sales of $48.0 million in the prior year’s third quarter. For the nine month period, net sales in the Division were $165.3 million versus $144.7 million in 2010, an increase of 14%. These increases were the result of stronger demand from governmental entities for the replacement of right of way maintenance equipment despite ongoing budget constraints.