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CHATTANOOGA, Tenn., Oct. 22 /PRNewswire-FirstCall/ -- Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their third quarter ended September 30, 2007.
Revenues for the third quarter of 2007 were $206.2 million compared with $171.5 million for the third quarter of 2006 for a 20.2% increase. Domestic sales accounted for $131.7 million during the third quarter of 2007 compared to $116.1 million during the third quarter of 2006. International sales accounted for $74.5 million of revenues during the third quarter of 2007 compared to $55.4 million during the third quarter of 2006. The Company reported net income of $11.6 million for the third quarter of 2007 compared to net income of $10.0 million for the third quarter of 2006 for an increase of 16.0%. Net income for the third quarter of 2007 was $0.51 per diluted share compared to $0.46 per diluted share for the third quarter of 2006 for a 10.9% increase.
The Company's backlog at September 30, 2007 was $239.9 million compared to $131.2 million at September 30, 2006 for an 82.9% increase.
Consolidated financial statements for the third quarter ended September 30, 2007 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, "We are pleased with the 2007 third quarter sales increase of 20.2% compared to the third quarter of 2006. The gross margin for the quarter was impacted by the shipment of some new models of equipment. S,G,A&E expenses were impacted by an increase in the Supplemental Executive Retirement Plan expense due to the increase in the value of our stock. We also increased our costs related to salaries and benefits by hiring additional staff in order to generate and support increased sales volumes. We are excited about the prospects for the fourth quarter and look forward to finishing another strong year."
"We believe that our increase in sales reflects a strong economy, an overwhelming need for road improvements resulting in state initiatives to increase funding, market acceptance of new products, improving market share, increasing sales of recycling equipment and strong international sales. The international demand has steadily increased throughout 2007 which should be indicative of strong international sales for the fourth quarter of 2007 compared to 2006."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October 22, 2007, at 10:00 A.M. Eastern Time to review its third quarter 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/www/docs/100, Conference Calls Section. 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 Monday, October 29, 2007 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 258614. A transcription of the conference call will be made available under the Investor Relation section of the Astec Industries, Inc. website within 5 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 business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.
To download complete Third Quarter Financials, click here.
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 for the fourth quarter and future generally, the ability to maintain or improve margins, the economy, the need for road improvements, the state initiatives to increase funding, the market's acceptance of new products, the Company's improving market share, the increase in sales of recycling equipment and international sales. 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, downturns in the general economy or the commercial construction industry, cyclical nature of the commercial, construction industry and the customization of the equipment the Company sells, increases in the price of oil or decreases in the availability of oil, increases in the price of raw materials, a failure to comply with covenants in the Company's credit agreement, contingent liability for certain customer debt, rising interest rates, rising steel and steel component pricing, delayed or decreased funding for highway construction and maintenance, managing and expanding in international markets, the timing of large contracts, production capacity, general business conditions in the industry, demand for the Company's products, seasonality of sales volumes, competitive activity 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, 2006
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