Chief Executive Officer and President, Jeffery A. Leonard, commented on the sale as follows, “We are pleased to announce the successful sale of our small operation in Indianola, IA. This decision reflects our commitment to driving continuous improvement.”

Alamo was founded in 1969, has approximately 4,050 employees and operates 29 plants in North America, Europe, Australia and Brazil.

| Member since 2006
| Member since 1952
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Third quarter 2022 net sales were $368.8 million compared to $338.3 million in the third quarter of 2021, an increase of 9.0%.  Gross margin improved in the quarter versus the third quarter of 2021 by $6.1 million or 7.0%. 

The positive results reported for the quarter were achieved through a combination of effective price management and disciplined control of operating expenses.  These results were achieved despite material cost inflation, elevated transportation costs, and unfavorable manufacturing efficiencies directly related to supply chain disruptions and skilled labor shortages.  

The Vegetation Management Division’s third quarter net sales were $228.5 million, up 8.9% compared to $209.8 million for the same period in 2021. The increase in net sales was driven by strong retail demand for forestry, tree care, agricultural and governmental mowing products in both North America and Europe. 

Jeff Leonard, Alamo Group’s President and Chief Executive Officer, commented, “We were pleased that our third quarter and year-to-date sales and earnings again set Company records despite a stubbornly challenging operating environment. Supply chain re-shoring by larger equipment manufacturers continues to stress North American suppliers of specialty components.  Labor remained very tight in most areas where we operate, and this also contributed to constrained top line growth.”

Leonard emphasized that the combination of supply chain delays and labor shortages once again reduced operational efficiency and resulting gross margin during the third quarter. 

“We continue to expect sales and earnings will expand nicely once the supply side issues resolve. The strength and health of our backlog continues to provide us with confidence about the performance of the Company for the remainder of this year and the near future,” Leonard said.

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The new title is part of a realignment of divisions announced with a series of changes at Alamo.

“Rick Raborn has done an outstanding job managing the company’s agricultural division over the last six years,” said Jeff Leonard, Alamo Group’s president and CEO. “I believe his sense of urgency as well as his focus on growth and continuous improvement will translate into success as he assumes responsibility for a significantly larger division with Alamo Group.”

The vegetation management division will include all of the agricultural division, plus the mowing and forestry/tree care operations that were previously part of the industrial division.

The Morbark and Dutch Power business units, which Alamo Group acquired over the past two years, will be part of vegetation management.

The industrial division will be renamed the industrial equipment division. Michael Haberman will be the executive vice president.

In other news, Alamo Group CFO Dan Malone will become the company’s first chief sustainability officer. Succeeding Malone as CFO will be Richard Wehrle, Alamo’s controller and treasurer.

Sources: Alamo Group Inc., San Antonio Business Journal
Member since 1952 |

The products are marketed under the Morbark, Rayco, Denis Cimaf and Boxer Equipment brand names.

Ron Robinson, Alamo Group’s president and CEO said this: “Morbark is a well-run, profitable, and growing company in a sector that has been steadily improving. Their products expand and complement our range of vegetation maintenance equipment in an adjacent market. We are excited about the opportunities this acquisition will provide Alamo and we look to continue their existing strategic growth plan focused on product development and market expansion, supplemented with synergistic acquisitions.”
Source: Alamo Group | Member since 1952 |