The Alamo Group recently announced that net sales for the first quarter of 2022 were $362 million, compared to $311.2 million in the first quarter of 2021, an increase of 16.3%. Gross margin improved in the quarter compared to the first quarter of 2021, but was negatively impacted by the continued increase in material and transportation costs and supply chain disruptions which resulted in product shortages. materials throughout the quarter. First quarter net income improved 5.8% to $18.5 million, or $1.55 per diluted share, from net income of $17.5 million, or $1.47 per diluted share in the first quarter of 2021.
The Company’s first quarter results continued to be significantly impacted by ongoing pandemic-related headwinds, including supply chain disruptions, cost inflation and, to a lesser extent, shortages. of skilled labour.
Results by division
The Vegetation Management Division had a strong first quarter of 2022 as markets remained strong and orders increased compared to the first quarter of 2021. The Division’s first quarter net sales were 221, $0 million, up 20.2% from $183.9 million for the same period in 2021. The increase in sales was driven by strong retail demand for agricultural, forestry, d tree maintenance and government mowing in North America and Europe.
The division’s operating profit for the first quarter of 2022 was $18.3 million, up 9.5% from $16.8 million in the first quarter of 2021. In addition to a very good performance of its North American operations, positive results in the United Kingdom, France, Brazil and Australia. The division was negatively impacted by supply chain issues, higher material and transportation costs and related surcharges which eroded margins and contributed to reduced manufacturing efficiency.
Industrial Equipment Division net sales for the first quarter of 2022 were $141.0 million, up 10.8% from the same period in 2021. The increase was primarily due to the increased sales of its excavator and vacuum truck products and, to a lesser extent, other product lines within the division. Net sales and new orders for industrial and government customers were strong in the first quarter of 2022. Delays in scheduled deliveries of medium truck chassis, other industrial engines, axles and transmissions had a significant impact on the Division during the quarter.
The division’s operating profit for the first quarter of 2022 was $10.8 million, up 24.1%, compared to $8.7 million for the first quarter of 2021. division was negatively impacted by supply chain issues and increased material and inbound freight costs.