Astec Industries Has Drop In Net Sales By 10%

Tuesday, February 26, 2013
Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their fourth quarter and year ended Dec. 31, 2012., including a drop in net sales by 10 percent. 

Net income attributable to controlling interest for the fourth quarter of 2012 was $10.7 million or $0.47 per diluted share compared to $8 million or $0.35 per diluted share for the fourth quarter of 2011, an increase of $2.8 million or 34%.

As previously announced, the company sold its American Augers, Inc. subsidiary during the fourth quarter of 2012.

The company recognized an after tax gain of $3.4 million, or $0.15 per diluted share, on the sale. All amounts in the report have been restated to reflect discontinued operations related to the sale of American Augers, Inc. on Nov. 30, 2012. Earnings from continuing operations for the fourth quarter of 2012 were $5.4 million or $0.23 per diluted share compared to $8.3 million or $0.36 per diluted share for the fourth quarter of 2011, a decrease of 36% or $0.13 per diluted share.

Net sales for the fourth quarter of 2012 were $227.6 million compared to $253.3million for the fourth quarter of 2011, a 10% decrease. Domestic sales decreased 10% to $129.0 million for the fourth quarter of 2012 compared to $142.9 million for the fourth quarter of 2011. International sales were $98.6 million for the fourth quarter of 2012 compared to $110.4 million for the fourth quarter of 2011, a decrease of 11%.

Net income attributable to controlling interest for 2012 was $40.2 million or $1.74 per diluted share compared to $39.9 million or $1.74 per diluted share for 2011.

Earnings from continuing operations for 2012 were $33.4 million or $1.45 per diluted share compared to earnings from continuing operations for 2011 of $39.7 million or $1.73 per diluted share, a decrease of 16% or $0.28 per diluted share.

Net sales for 2012 were $936.3 million compared to $908.6million for 2011, a 3% increase. Domestic sales increased 5% to $572.5 million for 2012 compared to $543.5 million for 2011. International sales were $363.8 million for 2012, only slightly changed from $365.1 million for 2011.

The company's domestic backlog increased 8%, from $145.0 million at December 31, 2011 to $156.6 million at December 31, 2012. The international backlog at December 31, 2012 was $107.2 million, a 13% decrease compared to the December 31, 2011 international backlog of $123.6 million. Total backlog decreased 2% to $263.8 million at December 31, 2012 from $268.6 million at December 31, 2011. 2011 backlog amounts have been restated to reflect the sale of American Augers in 2012.

Consolidated financial information for the fourth quarter and year ended December 31, 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, "2012 has been a year of uncertainty for the U.S. economy. Although Congress finally passed a new 27-month Federal highway funding bill in July, it was too late in the 2012 construction season to have an impact. Without the certainty of Federal infrastructure spending, many of our customers were reluctant to make capital expenditures. With the Federal highway funding bill in place we hope to see the release of some of the pent up demand in preparation for the 2013 construction season. In spite of the uncertainty in the general economy, we continued to develop new and innovative products, expand our markets and develop more efficient ways to build our products."

Dr. Brock continued, "Although we were pleased to declare and pay a special dividend of $1.00 per share during the fourth quarter of 2012, we continue to focus on finding the right acquisitions and expansion opportunities. We have put our capital to work with new manufacturing tools at many of our companies. We look forward to completing our factory in Brazil and shipping our first wood pelletizer order in 2013. As the economy begins to recover we will be poised to take advantage of opportunities that present themselves."


Tennessee American Water Submits 2015 Infrastructure Capital Projects

Tennessee American Water has submitted to the Tennessee Regulatory Authority its 2015 infrastructure capital projects in conjunction with the new alternative rate mechanism.   Approved earlier in 2014 by the Tennessee Regulatory Authority, the alternative rate mechanism creates a process whereby Tennessee American Water will annually submit by December 1 its capital infrastructure ... (click for more)

Supreme Court Reinstates Jury Verdict Awarding MTSU Employee Damages

The Tennessee Supreme Court unanimously reinstated a jury verdict, finding that a former maintenance employee of Middle Tennessee State University (MTSU) suffered unlawful retaliation through the actions of his supervisor. Jim Ferguson, a Japanese-American, argued that shortly after he filed a discrimination lawsuit against MTSU, his supervisor retaliated against him by requiring ... (click for more)

Downtown Chattanooga Apartment Complex Fetches $15 Million

Walnut Commons, the first downtown apartment complex built in many years, sold for $15 million, one of the developers said. John Clark said the initial estimate on the project was $11 million and it wound up costing around $12 million to build. "We're very pleased with the sale," he said. Mr. Clark, along with partners David Hudson and Bob McKenzie, are selling their stock ... (click for more)

Hamilton County Principal Ronald Hughes Named Tennessee's 2014-15 Principal Of The Year

A Hamilton County elementary school principal and an Anderson County supervisor have earned top honors for their work in Tennessee education. Ronald Hughes, principal of Apison Elementary School in Chattanooga, was named Tennessee’s 2014-15 Principal of the Year. He has served as principal at Apison Elementary for the past six years, and spent three decades working in Tennessee ... (click for more)

Congratulations To Ron Hughes

Hearty congratulations to Ron Hughes for being selected as Tennessee State Elementary Principal of the Year for 2014. Wherever Ron has been assigned as principal, he has exhibited strong leadership both academically and morally. His faith in God and his love for the students of Hamilton County have guided his actions and everyone that has benefited from the excellent education ... (click for more)

Roy Exum: Brittany’s Days Dwindle

So here we are, facing what is known as “Devil’s Night” before Halloween comes, and the almost macabre news now comes that Brittany Maynard, the beautiful girl who has chosen to end her life as soon as Saturday, is struggling to meet her own deadline. She has inoperable brain cancer and, at best, only months to live. The 29-year-old, who was married shortly before her devastating ... (click for more)