Astec Industries, Inc. Friday reported results for their third quarter ended Sept. 30. 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 percent 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 percent. 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 percent per diluted share.
Domestic sales increased 10 percent 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 percent 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 percent per diluted share.
Domestic sales increased 12 percent 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 percent increase.
The company's domestic backlog increased 8 percent, from $107.9 million at Sept. 30, 2011 to $116.1 million at Sept. 30. The international backlog at Sept. 30 was $124.4 million, a slight increase compared to the Sept. 30, 2011 international backlog of $124.2 million. Total backlog increased 4 percent to $240.5 million at Sept. 30 from $232.1 million Sept. 30, respectively. The 2011 backlog amounts have been restated to reflect acquisitions made late in 2011.
Commenting on the announcement, Dr. J. Don Brock, chairman and chief executive officer, stated, "While we were able to grow sales at 6 percent for the third quarter, our gross margin remained flat. Our pre-tax earnings were up 9 percent 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."