Alamo Group Inc. Reports 1998 First Quarter Results.SEGUIN, Texas--(BUSINESS WIRE)--April 28, 1998--Alamo Group Inc. (NYSE NYSE See: New York Stock Exchange :ALG ALG antilymphocyte globulin. ALG antilymphocyte globulin. ALG Antilymphocyte globulin, see there ) today reported results for the first quarter ended March 31, 1998. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter were $48.7 million compared with $51.6 million for the same quarter last year. Net income for the quarter was $1.9 million, or $0.20 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with $3.3 million, or $0.34 per diluted share, in the prior-year period. The company noted that while it continued to achieve increasing order input in its core U.S. operations, its first quarter sales and margins were negatively impacted by expected weakness in Europe and a decline in imported Chinese tractor sales. Donald J. Douglass, Chairman and Chief Executive Officer, commented: "While we are disappointed with our first quarter results, our domestic order rates in core areas were very strong in the period and should provide a solid foundation for following quarters. Order rates in our core American industrial and agricultural areas were up 17% over 1997's first quarter. We were not able to fully capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this strength due to continuing delays from our outsource suppliers which triggered delays in our shipments." Mr. Douglass continued: "Sales in Europe were soft, as we expected, due to economic and market conditions in the U.K. and France. We have already realized cost reductions in our operations serving these markets. On balance, we are in a better position to handle the factors that impacted our first quarter results and are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the seasonally strong second and third quarters." Alamo Alamo Eighteenth-century mission in San Antonio, Texas, site of a historic siege of a small group of Texans by a Mexican army (1836) during the Texas war for independence from Mexico. Group is a leader in the design, manufacture and distribution of heavy duty, tractor-mounted mowing mow 1 n. 1. The place in a barn where hay, grain, or other feed is stored. 2. A stack of hay or other feed stored in a barn. and vegetation maintenance equipment in America and Europe. The Company has 1,090 employees in the U.S. and 361 in Europe, and operates twelve manufacturing facilities. The corporate offices of Alamo Group Inc. are located in Seguin, Texas Seguin (pronounced IPA: /səˈgiːn/) is a city in Guadalupe County, Texas, in the United States. As of the 2000 census, the city population was 22,011. , near San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , and the headquarters for its European operations is located in Salford Priors Salford Priors is a rural, agricultural village and civil parish about six miles south west of Alcester, Warwickshire, UK. It is found on the Warwickshire border with Worcestershire. , England, near Birmingham. Except for the historical information contained herein, this release contains forward looking statements that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: market demand, market softness, competition, weather, seasonality, currency-related issues, and other risk factors listed from time to time in the Company's SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date. -0-
Alamo Group Inc. and Subsidiaries (NYSE:ALG)
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
First Quarter Ended
3/31/98 3/31/97
American
Agricultural $ 25,949 $ 26,616
Industrial 13,330 12,658
European 9,448 12,369
Total Sales 48,727 51,643
Cost of sales 37,379 38,907
Gross margin 11,348 12,736
Operating Expenses 7,397 7,141
Income from Operations 3,951 5,595
Interest Expense (712) (531)
Interest Income 174 131
Other income (Expense) (229) 6
Income before income taxes 3,184 5,201
Provision for income taxes 1,258 1,923
Net income $1,926 $3,278
Net income per common share:
Basic $0.20 $0.34
Diluted $0.20 $0.34
Average common shares:
Basic 9,685 9,590
Diluted 9,715 9,647
Summary Balance Sheet Data
3/31/98 12/31/97 3/31/97
Receivables 57,657 42,165 58,055
Inventories 75,956 65,752 60,147
Current Liabilities 26,687 19,876 26,820
Long Term Debt 43,507 28,617 38,546
Equity 107,196 106,265 98,171
CONTACT: Alamo Group Inc. Donald J. Douglass Chairman and Chief Executive Officer 210-738-1339 or 203-966-0621 Jim A. Smith Executive Vice President/ Chief Financial Officer 830-372-9618 or Morgen-Walke Associates: June Filingeri/Jennifer Angell Media Contact: Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network Froelich, Eileen King 212-850-5600 |
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