1ST HALF: ALAMO GROUP'S SALES UP 7%, NET INCOME DOWN 20%
Aug. 3, 2020
Source: Alamo Group news release
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Alamo Group's net sales for the second quarter of 2020 were $268.6 million compared to net sales of $285.2 million in the second quarter of 2019, a decrease of 5.8%. Net income for the quarter was $13.0 million, or $1.10 per diluted share, compared to $20.7 million, or $1.75 per diluted share, in the previous year's second quarter, a decrease of 37.2% in net income.
For the first six months of 2020 net sales were a record $583.1 million compared to $547.1 million in the previous year's first six month period, an increase of 6.6%. Net income for the first half of 2020 was $28.5 million, or $2.41 per diluted share, versus $35.9 million, or $3.05 per diluted share, for the same period in 2019, a decrease of 20.6% in net income.
The results for the second quarter and first six months of 2020 include the effects of the acquisition of Dutch Power, which was completed in March 2019, and the acquisition of Morbark, completed in October 2019. Together these acquisitions contributed $58.0 million to net sales and $2.5 million to net income in the second quarter of 2020 compared to $14.0 million in net sales and $0.9 million in net income in the second quarter of 2019.
For the first six months of 2020, these acquisitions contributed $124.5 million to net sales and $6.0 million to net income compared to $17.6 million in net sales and $1.1 million in net income in the first six months of 2019. The above results also include the negative effects of non-cash inventory step up charges of approximately $0.7 million in the second quarter of 2020 and $2.7 million in the first six months of 2020 related to the Morbark acquisition. The acquisition of Dixie Chopper was completed in September 2019, however its contribution to consolidated results was not material.