Astec Industries, Inc. on Tuesday reported results for their second quarter and year to date ended June 30.
Net sales for the second quarter of 2016 were $294.4 million compared to $268.0 million for the second quarter of 2015, a 9.9 percent increase. Earnings for the second quarter of 2016 were $18.2 million or $0.79 per diluted share compared to $11.8 million for the second quarter of 2015 or $0.51 per diluted share, an increase of 54.9 percent per diluted share.
Domestic sales increased 24.5 percent to $242.2 million for the second quarter of 2016 from $194.6 million for the second quarter of 2015. International sales were $52.2 million for the second quarter of 2016 compared to $73.4 million for the second quarter of 2015, a decrease of 28.9 percent.
Net sales for the first half of 2016 were $573.1 million compared to $556.8 million for the first half of 2015, a 2.9 percent increase. Earnings for the first half of 2016 were $35.9 million or $1.55 per diluted share compared to $26.9 million for the first half of 2015 or $1.16 per diluted share, an increase of 33.6 percent per diluted share.
Domestic sales increased 17.4 percent to $476.4 million for the first half of 2016 from $405.7 million for the first half of 2015. International sales were $96.7 million for the first half of 2016 compared to $151.1 million for the first half of 2015, a decrease of 36.0 percent.
The company’s backlog increased 58.8 percent from $229.5 million at June 30, 2015 to $364.5 million at June 30. The domestic backlog increased 80 percent from $172.0 million at June 30, 2015 to $310.0 million at June 30. The international backlog at June 30, 2016 was $54.5 million, a 5 percent decrease from the June 30, 2015 international backlog of $57.5 million.
Consolidated financial information for the second quarter ended June 30.
Commenting on the announcement, Benjamin G. Brock, chief executive officer, said, “We were pleased with our results for the second quarter. As our sales and backlog reflect, our domestic business remained strong during the quarter. This is primarily attributable to the increased demand caused by the passage of a new Federal highway bill in December 2015 and continuing good private sector activity.”
Mr. Brock continued, “Our backlog is up 58.8 percent versus last year. The majority of the increase is in the Infrastructure Group, again mainly as a result of the Federal highway bill and the $122.5 million pellet plant order announced during the first quarter. In contrast to the success of our domestic business, we continued to face headwinds in all of our groups with regard to our international business, primarily as a result of the strong U.S. dollar. We also continue to be challenged in our Aggregate and Mining Group as a result of the global mining slow down. Finally, we remain challenged in our Energy Group equipment sales in the oil and natural gas industries as prices for these commodities remain at low levels.”
In closing, Mr. Brock commented, “We were pleased to announce on July 7 our signed agreement to purchase Power Flame Incorporated for $43 million, subject to final due diligence and customary closing conditions. Power Flame manufactures burners for industrial and commercial use, and is recognized as an industry leader in technology, service, and market share. We expect to close the acquisition of Power Flame during the third quarter. We will discuss Power Flame in more detail during our earnings call today.”