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CHATTANOOGA, Tenn. (July 21, 2008) – Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their second quarter ended June 30, 2008.
Net income for the second quarter of 2008 was $0.93 per diluted share compared to $0.83 per diluted share for the second quarter of 2007 for a 12.0% increase.
Revenues for the second quarter of 2008 were $277.7 million compared with $226.4 million for the second quarter of 2007 for a 22.7% increase. Excluding revenues attributable to Peterson Pacific Corp., which was acquired in July, 2007, revenues for the second quarter were $256.0 million for a 13.1% increase. Domestic sales accounted for $184.7 million during the second quarter of 2008 compared to $156.6 million during the second quarter of 2007. International sales accounted for $93.0 million of revenues during the second quarter of 2008 compared to $69.8 million during the second quarter of 2007. The Company reported net income of $21.1 million for the second quarter of 2008 compared to net income of $18.5 million for the second quarter of 2007 for an increase of 14.1%. The Company’s backlog at June 30, 2008 was $264.6 million compared to $235.4 million at June 30, 2007 (including backlog attributable to Peterson) for a 12.4% increase.
Consolidated financial statements for the second quarter ended June 30, 2008 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 Company’s second quarter earnings. International sales continue to be strong, accounting for 33.5% of the second quarter volume. Gross margin for the quarter declined from 26.0% for the second quarter of 2007 to 23.9% for the second quarter of 2008. Rapid increases in the costs of steel and components were the primary reasons for the decline in gross margin. Year-to-date gross margin for 2008 has only declined 1.1% compared to the first half of 2007. We anticipate that inflation will continue to be a challenge during the second half of 2008. Some of our subsidiaries have implemented two price increases this year and are reviewing the need for additional increases to maintain or improve gross margins. We will continue our other initiatives to deal with inflation. We look forward to the second half of 2008 with a backlog at June 30, 2008 of $264.6 million compared to $263.0 million at March 31, 2008. Some of the deliveries in the backlog extend beyond the third quarter of 2008. The cost of oil and asphalt continues to cause states to increase the percentage of recycled materials used for highway paving. Asphalt equipment sales have improved and should continue to benefit from recycle related equipment sales.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on July 21, 2008 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/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, July 28, 2008 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 291359. 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 third and fourth quarters and future generally, the ability to maintain or improve margins, the economy, inflation and our initiatives regarding inflation, 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, the 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, increased government regulation, managing and expanding in international markets, the timing of large contracts, the costs of introducing new equipment systems, the Company’s production capacity, 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
Secretary / Director of Investor Relations
Phone: (423) 899-5898 Fax: (423) 899-4456
E-mail: sanderson@astecindustries.com
To download the complete Q2 results, click here. (PDF file)
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