Reporting from Reuters shows the program fell short of its target to deliver
$1.2 billion worth of food to food banks, churches, and other organizations by June.

As of July 1, the agency verified that 27.5 million food boxes had been delivered during the first round. That is equivalent to about 63 percent of the $1.2 billion pledged.

As of July 7, some 32 million food boxes had been verified delivered.

Source: Reuters

This page was last updated 04.06.2020 11:00a

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For the quarter, overall net sales increased by 17.2 percent compared to the same quarter last year. In agriculture, net sales for the quarter were down by 7.5 percent.

For the year, overall net sales increased by 10.9 percent with net sales in agriculture falling by 5.4 percent.

The results for 2019 included the effects of the Dutch Power and Morbark acquisitions.

President and CEO Ron Robinson described 2019 as “a year of great accomplishments for Alamo Group, along with several challenges that impacted our results more than we anticipated. Certainly, the accomplishments, largely dominated by three acquisitions including our largest ever, Morbark, greatly increase our platform for future growth and broadens our product offering in a complementary way that takes us into some new, but related markets.”

Specific to agriculture, Robinson said the company saw a 45.9 percent increase in bookings compared to the fourth quarter of 2018.

“While this is certainly not a trend, any improvement in the agricultural market is a welcome development,” he said.

Robinson also discussed developments in products and operations at Alamo, and Executive Vice President and CFO Dan E. Malone updated stakeholders on how the coronavirus is affecting the company.

Malone said Alamo buys between $40 million and $50 million in component parts from China. Most of these parts can be sourced from elsewhere, but there are exceptions.

“Most of our agricultural division sales would be exposed through such a disruption,” he said. “But as of today, our major suppliers are back up and running, they’re not necessarily at full staff.”

Alamo is anticipating delays and actively pursuing alternative sourcing options, he said.

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Illinois-based Morton Industries is trying to find a domestic source for tooling and fixtures used to shape metal that it previously imported from China. But limited domestic supply—and a rush to secure the supplies—have sent prices up as much as 30 percent, said Kevin Baughman, vice president of operations at Morton.

Baughman said the company has asked customers to shoulder the higher costs for the components “as we couldn’t absorb them.”

The increased costs are not limited to the parts these companies make. Shifting sourcing often means buying new tools and spending money to ensure that new parts fit the specifications demanded by equipment makers.

Executives of half a dozen suppliers said they are taking measures that include tying up sources outside China and booking air freight—as opposed to normal sea freight—to fly in the available parts and components from China, where roads and ports have been restricted, to ensure they can keep their customers supplied.

Executives from Deere and Caterpillar declined to comment.

Unlike the trade war with China, which ultimately contributed to limited production and layoffs for some manufacturers, the coronavirus impact may be short term. Prices could spike, then decline as supplies improve.

An Illinois-based supplier of Caterpillar and Deere, who declined to be named, said the company is paying 40 percent more to domestic vendors for components that used to come from China—costs it is passing on to customers.

Evan Poulakidas, director for North America at CCTY Bearing, says his company is ready to fly in products “piece by piece” from its plant in China.

The bigger challenge is how to keep the facility running if the factories of sub- suppliers remain closed. CCTY has informed its customers that stocks on hand would not last beyond April.

“It is not just for our products, but also for other products, there could be shortages,” Poulakidas said.

Source: Reuters