reflects the impact of lower sales volume and increased material costs. Operating income for the quarter was $40.1 million, representing a 10% margin. Net income was $27.4 million, or $2.28 per share, compared to $34.9 million, or $2.91 per share, in the same quarter of the previous year.
The Industrial Equipment Division saw a 22% increase in sales to $211.2 million, driven by strong demand in the governmental and contractor sectors. However, the Vegetation Management Division faced challenges with a 23% decline in sales to $190.1 million, reflecting the ongoing struggles in the forestry and agriculture markets.
Looking ahead, management is implementing cost reduction initiatives to target annual savings of $25 to $30 million. They are also maintaining a cautious outlook for the first half of 2025, with projected margin declines in the vegetation management segment. However, they remain optimistic about the future of the industrial sector post-election and anticipate a robust M&A pipeline for 2025.
Overall, Alamo Group Inc. is taking strategic steps to navigate through the current market conditions and position itself for future growth. With a strong industrial equipment backlog, a focus on cost reductions, and a promising M&A pipeline, the company is working towards improving its financial performance and shareholder returns in the coming year.