Net sales in the Agricultural Division were down by 5 percent for the second quarter and 4.7 percent for the first half of the year. The division’s income from operations for the first six months increased by 6.2 percent as a result of cost control and a favorable product mix.

The ag division’s results have been impacted by the repercussions from the COVID-19 pandemic, though to a lesser extent than the company’s Industrial Division. Also, the ag division’s North American operations have held up better in the short term than its European operations, which experienced more operational and demand issues during the second quarter.

Overall, net sales for the second quarter were down by 5.8 percent. The company’s Industrial Division saw a 6.2 percent decline in net sales for the second quarter.

Alamo Group’s results for the second quarter and first six months were affected by issues related to the COVID-19 pandemic. In late March and through most of April, the company experienced multiple plant closures, most notably in France and England and to a lesser extent in the U.S. and Canada. The plants have now reopened.

Out of a workforce of approximately 4,270 employees at the beginning of 2020, the company at the end of June had 550 workers on some form of a furlough or temporary layoff and had reduced its workforce by an additional 200.

A statement from the company said that, supported by its supply chain, it was functioning normally though at a reduced level.

“While our second quarter results were down, given the environment in which we continue to operate, they were in line with our expectations,” said Ron Robinson, Alamo Group’s President and Chief Executive Officer. “I am proud of all the dedicated people at our company who have worked so hard to achieve these results, given the many operational challenges we experienced …”

Net sales for the first 9 months decreased by 7.4 percent.

“Conditions in North America ag have not improved from the difficult planting season, and uncertainty abounds from a global economic perspective,” said President and CEO Paul Reitz. “These factors have added to weakening demand beyond North American ag and into the global construction market, which led to OEMs producing below retail demand levels during the quarter, which had a significant effect on our performance.”

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Consolidated corporate sales for continuing operations for the three- and nine-month periods ended August 31 were down by 4.2 percent for the quarter and 3.5 percent for the first nine months of the fiscal year.

A three-month increase in revenue is largely attributable to an $8.5 million project in the company’s modular buildings segment that began in the spring and increased lease revenue from modular building rentals.

Agricultural products and tools segments experienced decreases in revenues in the third quarter of fiscal 2019.

A nine-month decrease in consolidated sales is primarily due to decreased revenue in the ag products and tools segments.

Despite the overall sales decrease, Art’s Way saw increased sales for the nine-month period in land maintenance equipment, plows, beet equipment, bale processors and dump boxes over 2018.

“While it is clear that unfavorable market conditions and uncertainty continue to impact our business, we are pleased to see top line growth for the third quarter, driven by our Art’s Way Scientific business,” said Marc McConnell, chairman of the Art’s Way Board of Directors. “We continue to see strong backlog and ongoing demand in this business and have experienced the benefits of diversification helping the company overall. While consolidated profitability remained elusive in the third quarter of fiscal 2019, we continued to make operational improvements and investments that we expect to benefit us long-term.”

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