Astec Industries reports Q3 net earnings of US$6.9M on revenue of US$227M, compared with year-ago earnings of US$7.7M on revenue of US$214.6M
October 26, 2012
– Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their third quarter ended September 30, 2012. Net sales for the third quarter of 2012 were $227.0 million compared to $214.6 million for the third quarter of 2011, a 6% increase. Pre-tax earnings for the third quarter of 2012 were $10.1 million compared to $9.3 million in the third quarter of 2011, an increase of 9%. Earnings for the third quarter of 2012 were $6.9 million or $0.30 per diluted share compared to earnings for the third quarter of 2011 of $7.7 million or $0.34 per diluted share, a decrease of $0.04 or 12% per diluted share.
Domestic sales increased 10% to $139.5 million for the third quarter of 2012 compared to $127.3 million for the third quarter of 2011. International sales were $87.6 million for the third quarter of 2012 compared to $87.3 million for the third quarter of 2011.
Net sales for the first nine months of 2012 were $747.6 million compared to $692.6 million for the first nine months of 2011, an 8% increase. Pre-tax earnings for the first nine months of 2012 were $46.1 million, relatively unchanged from $46.2 million in the first nine months of 2011. Earnings for the first nine months of 2012 were $29.5 million or $1.28 per diluted share compared to earnings for the first nine months of 2011 of $32.0 million or $1.39 per diluted share, a decrease of $0.11 or 8% per diluted share.
Domestic sales increased 12% to $462.4 million for the first nine months of 2012 compared to $414.2 million for the first nine months of 2011. International sales were $285.2 million for the first nine months of 2012 compared to $278.3 million for the first nine months of 2011, a 3% increase.
The Company's domestic backlog increased 8%, from $107.9 million at September 30, 2011 to $116.1 million at September 30, 2012. The international backlog at September 30, 2012 was $124.4 million, a slight increase compared to the September 30, 2011 international backlog of $124.2 million. Total backlog increased 4% to $240.5 million at September 30, 2012 from $232.1 million September 30, 2011, respectively. 2011 backlog amounts have been restated to reflect acquisitions made late in 2011.
Consolidated financial information for the quarter and nine months ended September 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, "While we were able to grow sales at 6% for the third quarter, our gross margin remained flat. Our pre-tax earnings were up 9% during the quarter but our after-tax earnings were impacted by the lack of a research and development credit which was in effect in 2011 but has yet to be approved by Congress for 2012."
Dr. Brock continued, "Our customers continue to be reluctant to spend money on capital investments due to the lack of work and uncertainty in the economy. The delayed passage of the Federal highway bill caused state transportation departments to delay lettings until late in the construction season. In addition, the uncertainty surrounding taxes, regulations and the lack of general economic improvement continues to discourage customers from upgrading and expanding their equipment fleets. We see an opportunity for growth as the economy rebounds over the next few years and the pent up demand for equipment needs to be met."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October 26, 2012, at 10:00 A.M. Eastern Time to review its September 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 Friday, November 9, 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.