Astec sees flat year in 2013
By Chris Sleight26 February 2014
Astec Industries revenues for 2013 were flat with 2012 at US$ 933 million. Net profits were down -4% to US$ 39 million.
The company said it saw domestic sales rise +5% last year to US$ 599 million, while its international business was down -8% to US$ 464 million. It also saw a surge in its backlog last year, with its order book at the end of 2013 some 10% higher than a year previously at US$ 290 million. However, the order position reflected an improving domestic market, where the company’s backlog was up 28% and declining international business – Astec’s export order book was down -16% at the end of 2013.
Commenting on the results, CEO Benjamin G. Brock said, “We were pleased with our bottom line results during the fourth quarter of 2013, especially given the continued instability in federal highway funding.”
He continued, “Orders so far in 2014 have been steady. At the same time, we have continued to develop new products for the energy, mining and infrastructure industries. We will display 41 new products at the ConExpo show in Las Vegas during the first week of March.”
Road building was a clear driver for Astec last year, with revenues at its Asphalt Group business up +1.4% to US$ 238 million and growth of +6.5% to US$ 168 million in its Mobile Asphalt Paving division, which sells equipment under the Roadtec brand. However, revenues fell -1.4% to US$ 351 million at its largest business, the Aggregates and Mining Group, and Astec Underground’s revenues were down -11.7% to US$ 73 million.
Mr Brock said, “Our Underground Group, which is now focussed on supplying equipment to the oil and gas drilling industry, continued to struggle in the quarter and for the year. We believe this group has developed and is producing superior products, but is battling a soft market with low demand.”