Astec Industries Reports Second Quarter Results

CHATTANOOGA, Tenn., July 25, 2011 /PRNewswire/ -- Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their second quarter ended June 30, 2011.

The Company reported net income attributable to controlling interest of $14.1 million for the second quarter of 2011 compared to $10.3 million for the second quarter of 2010 for an increase of 36.9%.  Net income attributable to controlling interest for the second quarter of 2011 was $0.61 per diluted share compared to $0.45 per diluted share for the second quarter of 2010 for a 35.6% increase.

Revenues for the second quarter of 2011 were $247.8 million compared with $209.2 million for the second quarter of 2010 for an 18.5% increase.  Domestic sales were $139.5 million during the second quarter of 2011 compared to $129.2 million during the second quarter of 2010.  International sales accounted for $108.3 million of revenues during the second quarter of 2011 compared to $80.0 million during the second quarter of 2010 and accounted for 43.7% of total sales for the second quarter of 2011 compared to 38.2% for the second quarter of 2010.  

The Company's backlog at June 30, 2011 was $217.1 million compared to $139.7 million at June 30, 2010 for a 55.4% increase.  Domestic backlog increased 64.2% and international backlog increased 49.2%.

Consolidated financial statements for the second quarter ended June 30, 2011 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 performance of the Company during the second quarter especially considering the tough economic conditions that continue to persist.  The 18.5% increase in revenues was largely attributable to the increase in international sales which accounted for 43.7% of the total sales during the second quarter.  The lack of a long-term highway bill and concern about a solution to rising deficits are causing our domestic customers to continue to be cautious about making capital investments.  We continue to investigate a number of potential acquisitions that will be complementary to our existing businesses."

Dr. Brock continued, "On July 31, 2011, F. McKamy Hall will step down from the position of Chief Financial Officer.  McKamy will become Vice President of Business Development and will head up our efforts in seeking and investigating opportunities for expansion of our businesses while still reporting directly to me.  McKamy began his career with Astec in 1987 as Corporate Controller and became Vice President and Chief Financial Officer in 1998.  I sincerely appreciate and want to thank McKamy for his years of service, assistance, and leadership as our Chief Financial Officer.  Fortunately, McKamy's contributions to our success are not over. I look forward to continuing to work with him as we seek to continue to grow our business.  

David Silvious will be promoted from Corporate Controller to Vice President and Chief Financial Officer.  David has been with Astec for twelve years and was in public accounting seven years prior to joining Astec.  He is a CPA and has an MBA.  David has been working for twelve years under McKamy's guidance and supervision and has served as Corporate Controller since 2005.  We are pleased and excited about his new duties and position.

Also, Steve Anderson will be  promoted to Vice President of Administration and will retain his responsibilities as Corporate Secretary and Director of Investor Relations."

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on July 25, 2011 at 10:00 A.M. Eastern Time to review its second 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/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 Saturday, August 6, 2011 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 375728.  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 equipment and manufacturing operations are divided into four primary business groups:  aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.  The Other Group contains wood processing equipment manufacturing and Australian distribution for several of the Astec companies as well as Corporate.  

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 effects on the Company from its backlog, the effects of the economic downturn, the continued growth of our international business, the status of the multi-year highway bill and investigation of potential acquisitions and divestitures.  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, future downturns in the economy, rising oil and liquid asphalt prices, rising steel prices, the effect of any future federal stimulus package, decreased funding for highway projects, tax and healthcare reform, 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 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, 2010.  

SOURCE Astec Industries, Inc.