SEGUIN, Texas, April 7, 2020 /PRNewswire/ -- Alamo Group
Inc. (NYSE: ALG) today provided an update on its current business
operations as a result of the expanding impact of the COVID-19
pandemic. While most of the Company's operations remain open,
all are being affected to some extent by the spread of the
virus.
Previously, the Company announced the temporary closure of its
facilities in France. During the past week, the Company's
Rivard plant in Daumeray has reopened on a partial basis and the
other two French locations are working on plans to resume
operations as well. Alamo's
two U.K. locations also remain temporarily closed, though they too
are developing plans to reopen. In North America two of the
Company's four manufacturing plants in Canada are now closed, but as with all closed
facilities, they still have limited resources available to make
emergency shipments of parts and equipment and staff working
remotely to support customer needs and maintain administrative
functions. In the U.S., Alamo's Super Products plant near Milwaukee, Wisconsin which was previously
announced as closed has now resumed operations.
Nearly all other Alamo Group facilities globally are still
functioning, though at different levels of capacity due to a
combination of softer demand in the market place, supply chain
disruptions and employee restrictions. As a result of the
various challenges related to COVID-19, Alamo has temporarily furloughed a number of
both hourly and salaried employees, with the Company's Gradall,
Morbark and Rayco facilities experiencing the most significant
furlough activity. Out of a total staff of nearly 4,300
workers globally, approximately 1,210 are not working as a result
of a temporary plant closure, a temporary furlough or for other
reasons relating to the COVID 19 pandemic. This number
changes on a daily basis as conditions warrant. In addition,
Alamo has nearly 500 members of
staff working remotely.
Alamo Group has also taken a number of other steps to control
costs and manage cash flow in response to the current
situation. These measures include reductions in indirect
spending, restrictions on travel, limiting capital expenditures,
suspension of the Company's share repurchase program and reducing
inventory to match current demand levels, among others.
As a further step in controlling expenses, Alamo Group has
temporarily halted all U.S. salaried staff merit pay increases for
the time being and rolled back any that had already taken place
this year to 2019 levels. In addition, the Company's Board of
Directors has temporarily suspended cash compensation for all of
its independent Board members until further notice.
The above are just a few of the steps the Company is taking to
ensure it maintains ongoing business continuity and financial
strength and stability. Further, the Company is committed to
revising or expanding these measures as business conditions
warrant.
Above all, Alamo Group is dedicated to taking all appropriate
measures to protect the health and safety of our employees while at
the same time supporting our customers with essential products and
services. We appreciate that this is a difficult situation
for all concerned and want to thank everyone for their continued
understanding and support.
About Alamo Group
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, forestry equipment and related
after-market parts and services. The Company, founded in 1969, has
approximately 4,270 employees and operates 30 plants in
North America, Europe, Australia and Brazil as of December
31, 2019. The corporate offices of Alamo Group Inc.
are located in Seguin, Texas.
Forward Looking Statements
This release contains
forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
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, competition,
weather, seasonality, disease outbreaks such as COVID-19 and the
impacts stemming from any such outbreaks including supply chain
disruptions, operational disruptions, full or partial facility
closures, and other similar impacts, 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.
View original
content:http://www.prnewswire.com/news-releases/alamo-group-inc-provides-operational-update-301037004.html
SOURCE Alamo Group Inc.