Operating income was $164.8 million, 10.1% of sales. Cost reduction and strike impacts totaled $9.7 million. Operating cash flow reached $209.8 million. Debt net of cash fell 87.3% to $23.2 million. Backlog was $668.6 million. EBITDA was $220.6 million (13.5% of sales). Cost-saving efforts remain on track.

Source:

Along with the closing, employees will be laid off as well, starting in October.

According to the report, RhinoAg president Lisa Tubbs said in the letter the decision is a “strategic move necessary for the long-term sustainability” of the company.

Just days earlier, Alamo Group announced the sale of its Herschel Parts business to F.P. Bourgalt Tillage Tools. The company’s net sales for the second quarter ended June 30, 2024, were down 5.5% to $146.3 million. Net sales for its Vegetation Management division — which includes its ag products — were down 19.1% during the quarter vs. last year.

In the 2024 North American Equipment Dealers Assn. Dealer-Manufacturer Relations survey, RhinoAg was among the “rising stars,” showing the most improvement across every category.

| Member since 1952

Second quarter 2024 net sales were $416.3 million compared to $440.7 million in the second quarter of 2023. Gross margin was $108.2 million, or 26.0% of net sales, compared to $118.1 million, or 26.8% of net sales in the comparison period of 2023. Strong Industrial Equipment Division results partially offset the Vegetation Management headwinds.

Net income was $28.3 million, or $2.35 per diluted share, compared to $36.4 million, or $3.03 per diluted share, in the second quarter of 2023. The Company’s backlog at the end of the second quarter remained healthy at $768.9 million. While Vegetation Management backlog normalized to pre-Covid levels, Industrial Equipment backlog continues to grow and is 16% higher versus the end of the second quarter 2023.

Source: | Member since 1970

Gradall Industries manufactures wheeled and crawler telescopic excavators, and the strike does not impact any of Alamo Group’s ag equipment manufacturing.

The approximately 200 workers are part of the International Association of Machinists and Aerospace Workers (IAM), District Lodge 54, Local Lodge 1285. Alamo Group employs approximately 4,350 employees, according to its annual report filed with the SEC on Feb. 22, 2024.

“Negotiations are ongoing and the Company is committed to working in good faith with union leaders to reach agreement on the new labor agreement and restore normal operations,” the press release said.

An April 15 press release from IAM stated, “Gradall members are seeking higher pay increases and more stable health insurance costs.”

Source:

Upon Mr. Wehrle’s retirement, Ms. Kamps will succeed Mr. Wehrle as the company’s chief financial officer. Ms. Kamps joins the company from Americas Styrenics, LLC, where she has served as vice president and chief financial officer since January 2021.

Source:

Highlights

• Ninth consecutive quarterly record for sales and earnings
• Fourth quarter net sales of $417.5 million, up 8%
• Fourth quarter operating income of $44.8 million, up 5%
• Fourth quarter net income of $31.5 million, or $2.63 per diluted share, up 8%
• Full year net sales of $1.69 billion, up 12%
• Full year operating income of $198.0 million, up 33%
• Full year net income of $136.2 million, up 34%
• Full year diluted EPS was $11.36, up 33%
• Record EBITDA of $246.6 million, up 26%
• Year-end 2023 backlog at $860 million

Fourth Quarter Results: Fourth quarter 2023 net sales were $417.5 million compared to $386.6 million in the fourth quarter of 2022, an increase of 8%. Gross margin improved in the quarter versus the fourth quarter of 2022 by $11.1 million or 11%. Fourth quarter net income improved 8% to $31.5 million, or $2.63 per diluted share, compared to net income of $29.2 million, or $2.44 per diluted share in the fourth quarter of 2022. The Company’s backlog at the end of 2023 was $860 million.

Full Year Results: Full year 2023 net sales increased to almost $1.7 billion, up 12% compared to $1.5 billion for the full year 2022. Gross margin for 2023 increased $77.1 million or 20% versus the full year 2022. Net income for 2023 was $136.2 million, or $11.36 per diluted share, compared to net income of $101.9 million, or $8.54 per diluted share in 2022, a year-over- year EPS improvement of 33%.

Source:

Highlights for the Quarter

• Eighth consecutive quarterly record for sales and earnings
• Net sales of $419.6 million, up 13.8%
• Vegetation Management net sales of $246.9 million, up 8.0%
• Industrial Equipment net sales of $172.7 million, up 23.1%
• Income from operations of $49.8 million, (11.9% of net sales), up 38.8%
• Net income of $34.9 million, or $2.91 per diluted share, up 35.2%
• Trailing twelve-month EBITDA of $245.0 million, up 25.0% from full year 2022(1)
• Backlog of $890.9 million, down 2% compared to prior year third quarter-end

Record third quarter 2023 net sales were $419.6 million and increased 13.8% compared to $368.8 million in the third quarter of 2022. 

Gross margin improved in the quarter vs. the third quarter of 2022 by $21.8 million or 23.6%. Third quarter net income improved 35.2% to $34.9 million, or $2.91 per diluted share, compared to net income of $25.8 million, or $2.16 per diluted share in the third quarter of 2022.  

Source:

The record results reported for the quarter were achieved through a combination of effective price management, improvement in supply chain and higher manufacturing throughput.

Source:

Highlights

• Net sales of $411.8 million, up 13.7%
  • Vegetation Management net sales of $256.4 million, up 16.0%
  • Industrial Equipment net sales of $155.3 million, up 10.2%
• Income from operations of $49.0 million, up 68.4%
• Net income of $33.3 million, or $2.79 per diluted share, up 80.6%
• Trailing twelve-month EBITDA of $216.3 million, up 10.4% from full year 2022
• Backlog of $994.8 million, up 8.4% compared to prior year first quarter-end

Source:

Throughout 2022, the Company experienced strong demand for its products with the Company setting records for net sales and earnings in each quarter of the year.  The Company’s record  performance was achieved despite the significant material cost increases, supply chain disruptions and skilled labor shortages that the Company experienced during the year.  Our results were also negatively impacted by currency translation as the U.S. dollar strengthened against the currencies of international countries where we operate.

Source: