Alamo Group Inc. (NYSE: ALG) today reported results for the third quarter ended September 30, 2012.
Net sales for the third quarter were $156.1 million compared to net sales of $155.1 million for the same quarter of 2011, an increase of 1%. Net income for the quarter was $8.6 million, or $0.71 per diluted share, versus $10.1 million, or $0.84 per diluted share, for the third quarter of 2011, a decrease of 15%. The decline in net income was attributed to some softness across all three of the Company’s business segments.
Net sales for the first nine months of 2012 were a record $479.0 million and were 5% above 2011 nine-month net sales of $456.6 million. Net income in the 2012 nine month period was $24.7 million, or $2.05 per diluted share, compared to $24.6 million, or $2.06 per diluted share for the same period in 2011.
The Company’s 2012 results include the effect of the acquisition of Tenco, which was completed in October 2011. In the third quarter of 2012, Tenco contributed $5.0 million to net sales and $0.1 million to net income. For the first nine months of 2012, Tenco contributed $20.1 million to net sales and $0.4 million to net income.
Alamo’s North American Industrial Division net sales in the third quarter of 2012 were $62.0 million, an increase of 9%, compared to net sales of $57.0 million in the prior year’s third quarter. For the nine-month period, net sales in the Division were $196.8 million in 2012, versus $165.3 million in 2011, an increase of 19%. The 2012 results included the contributions of Tenco, as outlined above. Without Tenco, net sales in the third quarter of 2012 were flat compared to the previous year. These results reflect softer market conditions in this sector, which is primarily focused on governmental end users and related contractors. Sales to municipalities were noticeably weaker during the quarter.