“The results for the quarter were also impacted by higher stock option expenses. The Company normally makes most of its stock based compensation awards in the second quarter of the year and this time these costs were noticeably above average largely related to the accelerated vesting options to retirement eligible recipients.
“We were also disappointed by our Agricultural Division’s results, which felt the effects of the general slowdown in that sector. These weaker conditions began in mid-2013, and while we managed to still report improved sales into the first quarter of this year, we were unable to sustain that pace in the second quarter. Notwithstanding the market conditions, we did not manage this decline as well as we could have and allowed our margins to slip and inventory to grow. These areas will receive greater focus in the second half of the year.
“Our European Division helped offset some of these declines as their results reflect continued improvement in the demand for our agricultural and industrial products in that region overall. However, these conditions vary widely by country and our units based in the U.K. have experienced stronger growth than our French units, which are still being constrained by weaker local economic conditions.
Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for infrastructure maintenance, agriculture and other applications. Our products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements and related after-market parts and services. The Company, founded in
SOURCE Alamo Group Inc.