|Astec Industries Reports Second Quarter Results|
|Tuesday, 24 July 2012 07:00|
CHATTANOOGA, Tenn. (July 24, 2012) – Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their second quarter ended June 30, 2012. Net sales for the second quarter of 2012 were $253.9 million compared to $247.8 million for the second quarter of 2011, a 2% increase. Earnings for the second quarter of 2012 were $10.4 million or $0.45 per diluted share compared to earnings for the second quarter of 2011 of $14.1 million or $0.61 per diluted share, a decrease of $0.16 or 26% per diluted share.
Domestic sales increased 16% to $161.5 million for the second quarter of 2012 compared to $139.5 million for the second quarter of 2011. International sales were $92.4 million for the second quarter of 2012 compared to $108.3 million for the second quarter of 2011, a 15% decrease.
Net sales for the first half of 2012 were $520.5 million compared to $477.9 million for the first half of 2011, a 9% increase. Earnings for the first half of 2012 were $22.6 million or $0.98 per diluted share compared to earnings for the first half of 2011 of $24.2 million or $1.06 per diluted share, a decrease of $0.08 or 8% per diluted share.
Domestic sales increased 13% to $322.9 million for the first half of 2012 compared to $287.0 million for the first half of 2011. International sales were $197.6 million for the first half of 2012 compared to $190.9 million for the first half of 2011, a 3% increase.
The Company’s domestic backlog increased 44%, from $103.0 million at June 30, 2011 to $148.7 million at June 30, 2012. The international backlog at June 30, 2012 was $109.6 million, a 19% decrease from the June 30, 2011 international backlog of $134.5 million. Total backlog increased 9% to $258.3 million from $237.5 million at June 30, 2012 and 2011, respectively. 2011 backlog amounts have been restated to reflect acquisitions made late in 2011.
Consolidated financial information for the quarter and six months ended June 30, 2012 and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "During the second quarter, domestic sales were higher overall but we saw significant declines in domestic sales in the Asphalt and Mobile Asphalt Paving groups. The series of 90-day highway bill continuations that lasted through the second quarter created funding uncertainties at state transportation departments. This resulted in delays in, and in some cases the elimination of, projects during the peak road construction season. Our international sales were hurt by a stronger dollar and uncertainty in the global economy. Although we don't expect to overcome this shortfall this year, the new 27-month highway bill should help demand return to a more normalized level during the second half of the year."
Dr. Brock continued, "In spite of the uncertainty that exists in the global economy, we continue to develop new products and explore new applications for existing products, all with an eye toward diversification. We continue to look for acquisitions that fit our strategic goals and help us make our customers successful."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on July 24, 2012, at 10:00 A.M. Eastern Time to review its June 30, 2012 results as well as current business conditions. The number to call for this interactive teleconference is (877) 407-9210. International callers should dial (201) 689-8049. Please reference Astec Industries.
The company will also provide an online Web simulcast and rebroadcast of the conference call. The live broadcast of Astec's conference call will be available online at the Company's website: www.astecindustries.com/conferencecalls. An archived webcast will be available for 90 days at www.astecindustries.com.
A replay of the conference call will be available through midnight on Tuesday, August 7, 2012 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 397799. A transcription of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within 5 business days after the call.
Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world's infrastructure. Astec's manufacturing operations are divided into four primary business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment. Additionally, the Other Group contains one subsidiary that manufactures equipment used for wood processing and recycling and one that is a company-owned dealership located in Australia.
The information contained in this press release contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about the Company's financial performance in the second half of 2012, the effects on the Company from its backlog, the effects of our recent acquisitions, dispositions, and joint ventures, the Federal highway bill, the uncertainty in the global economy, and the success of the Company's product development activities. These forward-looking statements reflect management's expectations and are based upon currently available information, and the Company undertakes no obligation to update or revise such statements. These statements are not guarantees of performance and are inherently subject to risks and uncertainties, many of which cannot be predicted or anticipated. Future events and actual results, financial or otherwise, could differ materially from those expressed in or implied by the forward-looking statements. Important factors that could cause future events or actual results to differ materially include: general uncertainty in the economy, rising oil and liquid asphalt prices, rising steel prices, the affect of any future federal stimulus package, decreased funding for highway projects, the relative strength/weakness of the dollar to foreign currencies, production capacity, general business conditions in the industry, demand for the Company's products, seasonality and cyclicality in operating results, seasonality of sales volumes or lower than expected sales volumes, lower than expected margins on custom equipment orders, competitive activity, tax rates and the impact of future legislation thereon, and those other factors listed from time to time in the Company's reports filed with the Securities and Exchange Commission, including but not limited to the Company's annual report on Form 10-K for the year ended December 31, 2011.
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