Alamo Group Reports Incomes for Second Quarter of 2007
One of the world’s largest manufacturers of tractor-mounted mowers, brush-cutters, and land-clearing equipment is Alamo Industrial. The line of mowing products and parts are made for right-of-way clearing, roadside vegetation management and grounds maintenance and all of which cuts the competition down to size. The Alamo Industrial line includes rotary, flail, and sickle bar mowers known over the years as Mott®, Terrain King®, and Triumph®. The boom mowers have been at the top of the industry for many years and are offered with many types of cutting heads together with limb cutters. The company has all the solutions the customers need in conquering those tough vegetation control jobs from highway mowing to land-clearing products.
For more than 35 years, Alamo Group Inc. has been a world leader in the design, manufacturing, distribution and service of high quality equipment for right-of-way maintenance and agriculture. Their products include tractor and truck mounted mowing and other vegetation maintenance equipment, excavators, street sweepers, vacuum trucks, snow removal equipment, pothole patchers, agricultural attachments and related after market parts and services.
The Seguin-based Alamo Group stated the net income of $4 million, or 41 cents per diluted share, and for the revenues producing $132 million for the quarter ended June 30, 2007. This compares to net income of $5.3 million, or 53 cents per diluted share, on revenues of $125.5 million for the same period a year ago.
“The first half of 2007 has been a period of mixed results for Alamo Group. Most of our units produced solid performance with increases in sales and profits; however, a couple of units, particularly Gradall and VacAll, posted weak results that more than offset these gains”, the Alamo Group’s President and Chief Executive Officer Ron Robinson noted. “Our real disappointment in the quarter and the first half of 2007 has been our Gradall and VacAll operations, where lower sales and inefficiencies have weighed heavily on profitability. We relocated VacAll’s production to our Gradall facility in the second half of 2006, but have been slow achieving anticipated cost improvements. Most of these issues should be resolved in the second half of 2007, and 2008 should benefit even more as we ramp up production. Additionally, sales at our Gradall unit have been below plan for the first two quarters due to a slow down in some key market segments. While we experienced a temporary rebound in March, second quarter results for us and the market in general indicate this sector is softer than anticipated. Sales and shipments were further impacted by some late deliveries of key components from a major supplier. We are aggressively addressing market conditions by working to maximize our opportunities both domestically and internationally. We are also working to resolve the supplier issues and feel we will see some improvement in the last half of 2007.”
And for this, Mr. Robinson concluded, “We have solid momentum in most of our operations, but need to get all units moving forward to achieve the results of which we are capable. And, believe the second half of 2007 will show tangible evidence of progress in this direction.”