Alamo Group Inc. (NYSE: ALG) today reported results for the first quarter ended March 31, 2012.
Net sales for the first quarter were $155.9 million compared to net sales of $140.7 million for the first quarter of 2011, an increase of 11%. Net income for the quarter was $6.8 million, or $0.56 per diluted share, compared to net income of $5.7 million, or $0.47 per diluted share, for the first quarter of 2011, a 19% increase. The Company’s 2012 results include the effect of the acquisition of Tenco, which was completed in October 2011. Tenco contributed $9.4 million to net sales in the first quarter of 2012 and $0.5 million to net income. The 2012 net sales and net income levels were both records for Alamo for a first quarter as the Company benefited from strong growth particularly in its North American Industrial Division.
Net sales in the Industrial Division for the first quarter of 2012 were $64.7 million, a 32% increase compared to net sales of $49.0 million in the first quarter of 2011. The results include the contributions of Tenco outlined above. The Division also benefited from increased sales of its mowing products and vacuum trucks.
Alamo’s North American Agricultural Division recorded net sales of $48.3 million in the first quarter of 2012, a 3% decrease compared to net sales of $49.7 million in the prior year’s first quarter. The decrease reflected slower growth in the overall U.S. agricultural market and slightly lower preseason sales, which generally make up the majority of this Division’s first quarter revenue.
The Company’s European Division net sales in the first quarter of 2012 were $42.9 million, an increase of 2% versus $41.9 million in the first quarter of 2011. The Division’s sales remained steady despite the continuing economic slowdown affecting many of the Company’s markets in Europe.