Astec results point to strong 2008
By Chris Sleight22 October 2008
Astec Industries had sales of US$ 237 million in the third quarter of the year, up +15% on the same period last year. There was particularly strong growth in the compny's international sales, which were up +37% to US$ 102 million - 43% of the total.
Astec, which is a specialist equipment manufacturer for the road building, ahggregates and underground construction industries saw its net profits rise +38% to US$ 16 million for the quarter. Its order backlog as of the end of September stood at US$ 256 million, up +6.6% on the position a year ago.
Dr. J. Don Brock, chairman and CEO of Astec Industries said, "We are very pleased with our third quarter results. With our present backlog, we expect a strong finish for the year."
Commenting on conditions in the US he added, "The injection of US$ 8.0 billion into the Highway Trust Fund ensures full funding at the federal level for 2009. Many states, however, are experiencing lower tax revenues as a result of the economic downturn and, in particular, the higher oil prices. The current trend toward lower oil prices should positively impact the state fuel tax collections as drivers return to the road and reduce the price of asphalt resulting in a greater number of road building contracts. Furthermore, the growth in the energy and mining portions of our business and the strong possibility of a stimulus package for roads and bridges gives us hope of continued strength and growth in 2009."