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."


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