Astec Industries, Inc. (Nasdaq:ASTE) on Tuesday reported results for its third quarter which ended Sept. 30. Net sales for the third quarter of 2013 were $213.2 million compared to $218.4 million for the third quarter of 2012, a 2% decrease. Earnings from continuing operations for the third quarter of 2013 were $6.5 million or $0.28 per diluted share compared to $6.6 million or $0.29 per diluted share in the third quarter of 2012, a decrease of 1%.
Domestic sales decreased 1% to $132.4 million for the third quarter of 2013 compared to $134.0 million for the third quarter of 2012. International sales decreased 4% to $80.8 million for the third quarter of 2013 compared to $84.4 million for the third quarter of 2012.
Net sales for the first nine months of 2013 were $709.1 million compared to $708.6 million for the first nine months of 2012, a slight increase. Earnings from continuing operations for the first nine months of 2013 were $30.8 million or $1.33 per diluted share compared to $28.5 million or $1.24 per diluted share in the first nine months of 2012, an 8% increase.
Domestic sales increased 3% to $456.6 million for the first nine months of 2013 compared to $443.5 million for the first nine months of 2012. International sales were $252.5 million for the first nine months of 2013 compared to $265.1 million for the first nine months of 2012, a 5% decrease.
The company's domestic backlog increased 20%, from $110.6 million at Sept. 30, 2012 to $132.9 million at Sept. 30. The international backlog at Sept. 30, was $95.6 million compared to $120.1 million at Sept. 30, 2012 for a decrease of 20%. Total backlog decreased 1% to $228.5 million at Sept. 30, 2013 from $230.7 million at Sept. 30, 2012. 2012 backlog amounts have been revised to reflect divestitures made late in 2012.
Prior period results have been revised to correct errors identified during the third quarter of 2013. The effects of the errors are not material to such prior periods, and therefore the Company has concluded that its financial statements for such prior periods can still be relied upon. The net impact of the correction is an increase to net income of $51,000 and $480,000 for the third quarter and nine months ended Sept. 30, 2012, respectively, resulting in no change to earnings per diluted share for the third quarter of 2012 and an increase to earnings per diluted share of $.02 for the nine months ended Sept. 30, 2012. Balance sheet corrections consisted of increasing retained earnings by $2.6 million and inventory by $3.8 million, each on a cumulative basis at Sept. 30, 2012, along with related changes in deferred and current income tax balance sheet amounts. The increase in profit occurred primarily in the Asphalt Group's gross margin while the related tax effects occurred primarily in the Other Group.
Consolidated financial information for the quarter and nine months ended Sept. 30, and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement of quarterly results, Dr. J. Don Brock, chairman and chief executive officer, said, "Sales for the third quarter were down slightly, primarily driven by a lack of equipment sales in the Aggregate and Mining Group. This resulted in a decrease in overhead absorption which affected our gross margin. We believe continued rainy weather during the quarter in some parts of the country hampered many of our customers and a continued lack of clarity on the future of highway funding has made many of our customers hesitant to spend on major equipment purchases. International business has slowed when compared to last year but we have seen a pickup in orders early in the fourth quarter."
Dr. Brock continued, "We are busy installing our first pellet plant in Georgia. We hope to open the plant and start producing pellets there before the end of the year. We are also making progress on the construction of our manufacturing facility in Brazil. We continue to look for appropriate acquisitions to expand our product offering and market coverage. Although we are cautious about the near-term economic outlook, we are building a foundation for future growth in sales and profits."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on Tuesday, at 10 a.m. to review its Sept. 30, 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, Nov. 5, by dialing 877 660-6853, or 201 612-7415 for international callers, Account #286, Conference ID# 100581. A transcription of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within five business days after the call.