Astec Industries Reports Second Quarter Results

CHATTANOOGA, Tenn., July 20 /PRNewswire-FirstCall/ -- Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their second quarter ended June 30, 2010.

The Company reported net income attributable to controlling interest of $10.3 million for the second quarter of 2010 compared to $7.7 million for the second quarter of 2009 for an increase of 33.8%.  Net income attributable to controlling interest for the second quarter of 2010 was $0.45 per diluted share compared to $0.34 per diluted share for the second quarter of 2009 for a 32.4% increase.

Revenues for the second quarter of 2010 were $209.2 million compared with $188.8 million for the second quarter of 2009 for a 10.8% increase.  Domestic sales were $129.2 million during the second quarter of 2010 compared to $129.2 million during the second quarter of 2009.  International sales accounted for $80.0 million of revenues during the second quarter of 2010 compared to $59.6 million during the second quarter of 2009 and accounted for 38.2% of total sales for the second quarter of 2010 compared to 31.6% for the second quarter of 2009.    

The Company's backlog at June 30, 2010 was $139.7 million compared to $133.6 million at June 30, 2009 for a 4.6% increase.

Consolidated financial statements for the second quarter ended June 30, 2010 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, "Considering the state of our economy, we are pleased with our second quarter results.  We continue to develop and introduce new products and apply existing products in the mining and energy industries, and grow international sales."  

Dr. Brock continued, "We remain concerned about the lack of action by Congress on a new 6-year highway bill.  Our customers will remain cautious and reluctant to make major capital expenditure commitments until a bill is passed in Washington.  In general, customers are only purchasing equipment needed for current jobs.  Customers continue to purchase components, assemblies and parts for maintaining or increasing production, but a multi-year highway bill should give our customers the confidence to expand their production capacity by purchasing entire plants or installations."

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on July 20, 2010 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 Tuesday, August 3, 2010 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 353865.  A transcription of the conference call will be made available under the Investor Relation 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 Company's financial performance for the remainder of 2010, the effects on the Company from its backlog, the effects of the economic downturn, the continued growth of our international business, and the status of the multi-year highway bill.  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 affect 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, 2009.  

SOURCE Astec Industries, Inc.