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Alamo Group Inc. (NYSE: ALG) today reported results for the second quarter ended June 30, 2012.
Net sales for the quarter were $167.0 million compared to net sales of $160.8 million in the second quarter of 2011, an increase of 4%. Net income for the quarter was $9.3 million, or $0.77 per diluted share, versus $8.9 million, or $0.74 per diluted share, for the same period of 2011, an increase of 5%.
For the first six months of 2012, net sales were $322.9 million, a 7% increase compared to 2011 six month net sales of $301.5 million. Net income in the first half of 2012 was $16.1 million or $1.34 per diluted share, versus $14.6 million, or $1.22 per diluted share, for the first half of 2011, an increase of 11%.
Net sales and net income for both the second quarter and first six months of 2012 were records for Alamo Group. The Company’s 2012 results include the effect of the acquisition of Tenco, which was completed in October 2011. Tenco contributed $5.7 million to net sales and had a net loss of $0.1 million, primarily related to seasonality, in the second quarter of 2012, and for the first six months of 2012 Tenco contributed $15.1 million to net sales and $0.4 million to net income.
The Company’s North American Industrial Division net sales in the second quarter of 2012 were $70.1 million, an increase of 18% compared to the $59.3 million achieved in the prior year’s second quarter. For the six month period, net sales were $134.9 million in 2012 versus $108.4 million in 2011, an increase of 24%. The results included the contributions of Tenco outlined above. The Division also benefited from increased sales, particularly in its mowing-related products.
Alamo’s North American Agricultural Division net sales were $53.1 million in the second quarter of 2012 versus $55.5 million in the comparable period of 2011, a decrease of 4%. For the first six months of 2012 net sales in the Division were $101.4 million versus $105.2 million in 2011, a decrease of 4%. The softer results reflected slower overall conditions in this sector compared to the high growth rates experienced in the last two years. For this Division in particular, higher dealer inventories, especially in the areas that have been affected by recent droughts, had an adverse affect on sales.