Alamo Group's net sales for the second quarter of 2021 were $347.6 million compared to net sales of $268.6 million in the second quarter of 2020, an increase of 29%. Net income for the quarter was $26.0 million, or $2.19 per diluted share, compared to $13.0 million, or $1.10 per diluted share, in the previous year's second quarter, an increase of 100% in net income and 99% in net income per diluted share.
For the first 6 months of 2021 net sales were $658.7 million compared to $583.1 million in the previous year's first six-month period, an increase of 13%. Net income for the first half of 2021 was $43.5 million, or $3.66 per diluted share, vs. $28.5 million, or $2.41 per diluted share, for the same period in 2020, an increase of 53% in net income and 52% in net income per diluted share.
The results for the second quarter and first 6 months of 2021 included a $2.6 million after tax gain on the sale of a facility in the Netherlands while comparable 2020 results included the negative effects of non-cash inventory step up charges of approximately $0.7 million in the second quarter of 2020 and approximately $2.7 million in the first 6 months of 2020 related to the Morbark acquisition. Excluding the effects of these non-recurring items, second quarter 2021 adjusted net income was $23.4 million, compared to $13.5 million in the prior year second quarter, an increase of 73%.
Alamo Group's results for the second quarter and first 6 months of 2021 reflect a strong recovery in customer demand compared to prior year periods when the COVID-19 pandemic materially impacted the Company's performance. While the Company has delivered significant year-over-year sales and profitability improvements, percentage margins have not yet rebounded to pre-pandemic levels. Operationally, the favorable leveraging effects of higher customer demand have been constrained by supply chain disruptions and labor shortages, and have been more than offset by a very high rate of input cost inflation which has exceeded the speed at which the Company has been able to effectively implement offsetting pricing actions.
The Company's Agricultural Division net sales in the second quarter of 2021 were $116.3 million compared to $86.4 million in the prior year's second quarter, an increase of 35%. The Division's income from operations for the quarter was $13.7 million compared to $8.8 million in 2020, an increase of 56%. For the first six months of 2021, the Agricultural Division's net sales were $215.6 million vs. $170.9 million in the prior year, an increase of 26%. The Division's income from operations for the first six months of 2021 was $23 million compared to $14.3 million in the prior year, an increase of 61%.
The Agricultural Division continues to enjoy high customer demand aided by low dealer inventories, but it was also affected by supply chain disruptions and input cost increases, which have yet to be fully offset by its pricing actions. However, prior year results in this Division were less affected by the pandemic as compared to the Company's Industrial Division.
Comments on Results
Jeff Leonard, Alamo Group's president and CEO, commented, "We are very pleased with our second quarter results in the context of the opportunities, and the challenges, that were evident in our markets during the second quarter. As the global economy continued to recover from the effects of the coronavirus pandemic, demand for our products gained further momentum in both of our operating divisions, across North America and Europe. As a result, the Company achieved record order bookings for a second quarter and backlog also set a new record. Sales in the quarter improved strongly, and net income doubled compared to the second quarter of 2020. Sales and net income were also significantly improved versus the pre-pandemic second quarter of 2019 and benefited from the contributions of the Dutch Power and Morbark businesses that we acquired in 2019.
"Our Agricultural Division produced excellent sales and net income this quarter. Demand for its products was strong not only in North America and Europe, but also in markets such as Brazil and Australia where we have been steadily developing our presence over the past several years. The Division benefited from robust demand for its mowers and agricultural implements from farm and ranch customers and also achieved modestly higher sales of spare parts compared to the second quarter of 2020.
"Looking forward, the potential of a significant recurrence of coronavirus illness in our communities certainly remains an ongoing concern. Assuming the pandemic does not worsen again, we believe customer buying activity will remain at a good level in both the Agricultural and Industrial segments through at least the remainder of 2021. Supported by our backlog of almost $504 million, Alamo Group's outlook for the next several quarters remains quite positive. However, at the moment, it is difficult to predict when the headwinds we experienced during the second quarter will abate. Our expectation is that they will persist at least through the balance of 2021 and some issues, such as the ongoing shortage of computer chips, which can impact our truck chassis and tractor deliveries, are now expected to persist into early 2022. We will continue to take appropriate price actions to address changes in our cost structure, and will continue to work closely with our suppliers to work through the ongoing supply chain disruptions. Most importantly, we continue to invest in our people, processes and equipment to expand our capability to deliver the backlog as efficiently as possible. So, while the second quarter was certainly a challenging one, I am pleased with the solid financial and operating results we have achieved and I remain optimistic that the Company will continue to perform well for the remainder of the year. "
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