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Astec Industries Reports Third Quarter Results With Historical Quarterly Highs In Revenues And Net Income
CHATTANOOGA, Tenn. (October 21, 2008) - Astec Industries, Inc. (Nasdaq: ASTE) today reported results for its third quarter ended September 30, 2008.
Revenues for the third quarter of 2008 were $237.4 million compared with $206.2 million for the third quarter of 2007 for a 15.1% increase. Domestic sales accounted for $135.3 million during the third quarter of 2008 compared to $131.7 million during the third quarter of 2007. International sales accounted for $102.1 million of revenues during the third quarter of 2008 compared to $74.5 million during the third quarter of 2007. The Company reported net income of $16.0 million for the third quarter of 2008 compared to net income of $11.6 million for the third quarter of 2007 for an increase of 37.9%. Net income for the third quarter of 2008 was $0.71 per diluted share compared to $0.51 per diluted share for the third quarter of 2007 for a 39.2% increase.
The Company’s backlog at September 30, 2008 was $255.7 million compared to $239.9 million at September 30, 2007 for a 6.6% increase.
Consolidated financial statements for the third quarter ended September 30, 2008 and additional information related to segment revenues, profits, and backlog are attached to this press release.
Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "We are very pleased with our third quarter results. With our present backlog, we expect a strong finish for the year. The injection of $8.0 billion into the Highway Trust Fund ensures full funding at the federal level for 2009. Many states, however, are experiencing lower tax revenues as a result of the economic downturn and, in particular, the higher oil prices. The current trend toward lower oil prices should positively impact the state fuel tax collections as drivers return to the road and reduce the price of asphalt resulting in a greater number of road building contracts. Furthermore, the growth in the energy and mining portions of our business and the strong possibility of a stimulus package for roads and bridges gives us hope of continued strength and growth in 2009."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October 21, 2008, 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 Tuesday, November 4, 2008, by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 300071. 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. Astec also has a company engaged in the wood chipping and grinding industry.
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, state and federal initiatives to increase funding, the awarding of future contracts, the market's acceptance of new products, the Company’s improving market share, and the increase in 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, 2007.
For Additional Information Contact:
J. Don Brock
Chairman of the Board & C.E.O.
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: dbrock@astecindustries.com
or
F. McKamy Hall
Vice President and Chief Financial Officer
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: mhall@astecindustries.com
or
Stephen C. Anderson
Director of Investor Relations & Corporate Secretary
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: sanderson@astecindustries.com
To download complete Third Quarter 2008 Financials, click here.
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