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SEGUIN, Texas, May 3, 2017 — Alamo Group Inc. (NYSE: ) today reported results for the first quarter ended March 31, 2017.

Highlights for the Quarter

• Record net income for a first quarter of $12.2 million, up 40.5%

• Record net sales for a first quarter of $215.4 million, up 2.1%

  • Industrial Division up 2.1%

  • Agricultural Division up 6.4%

  • European Division down 3.2%

• Backlog at $147 million was flat versus year-end, down 3.8% versus previous year's first quarter

Alamo Group's net sales for the first quarter of 2017 were $215.4 million compared to net sales of $211.0 million for the first quarter of 2016, an increase of 2.1%.  Net income for the quarter was $12.2 million, or $1.05 per diluted share, compared to net income of $8.7 million, or $0.75 per diluted share in 2016, an increase of 40% in both net income and earnings per share.  Both net sales and net income were records for a first quarter for Alamo Group.

Alamo's Agricultural Division net sales in the first quarter of 2017 were $51.8 million compared to net sales of $48.7 million in 2016, an increase of 6.4%.  Despite continuing weakness in the overall agricultural market, the Division's results benefited from the broad market appeal for its range of products and were further aided by new product introductions.

Ron Robinson, Alamo Group's President and Chief Executive Officer, commented, "We are very pleased with our performance in the first quarter of 2017 and glad to have a good start to the current fiscal year.  Given the headwinds which we have faced in a number of our markets, we were pleased to have some sales growth and more importantly, to have so much of this growth flow straight to the bottom line.  This provided record results for our Company even compared to last year's first quarter which was itself a record quarter.

"Our Agricultural Division once again had a good quarter despite ongoing soft market conditions.  We benefited from broad applicability of our range of products combined with several marketing initiatives and results were further enhanced by new product introductions.  We believe this Division should further benefit from improved market conditions which are anticipated in either late 2017 or 2018."