Astec makes international inroads in second quarter
By Steve Skinner22 July 2010
Astec Industries reported second quarter sales of US$ 209.2 million, up +10.8% on the US$ 188.8 million recorded 12 months ago. Pre-tax profits rose +32.6% to US$ 15.8 million, up from US$ 11.9 million for the same quarter last year.
Domestic sales in the US remained static at US$ 129 million while international sales increased +34% to US$ 80 million, up from US$ 59.6 million for the same period last year.
Chairman and CEO Don Brock said, "Considering the state of our economy, we are pleased with our second quarter results. We continue to develop and introduce new products and to grow international sales.
"We remain concerned by the lack of action by Congress on a new six-year highway bill. Our customers will remain cautious and reluctant to make major capital expenditure commitments until a bill is passed in Washington."
Mr Brock also said that customers are only purchasing equipment needed for current jobs and that they are now purchasing components, assemblies and parts for maintaining equipment or increasing its production capacity.
"A multi-year highway bill should give our customers the confidence to expand their production capacity by purchasing entire plants or installations," he said.
Astec's order backlog as at 30 June stood at US$ 139.7 million, up +4.6% on the US$ 133.6 million reported 12 months ago.