Fourth quarter slows Astec growth
By Chris Sleight24 February 2009
Astec Industries had sales of US$ 974 million last year, a +12.0% increase on 2007. However, its sales fell -11.5% in the fourth quarter of the year compared to the same period in 2007, reducing its growth for the year.
Commenting on the results, Astec chairman and CE Dr Don Brock said, "We are pleased with our 2008 results. During the last three months of the year we saw the market go from optimistic yet cautious to completely pessimistic and frozen. The company's sales grew +20% in the first nine months, but the fourth quarter slowdown only allowed us to finish the year with +12% sales growth."
Astec's profits were up for the year, despite the fourth quarter slowdown, with net income rising +11.1% on 2007 to US$ 63 million. However, the figure for the fourth quarter of 2008 was down -24.7% on the same period in 2007.
Orders also declined in the fourth quarter, and Astec finished the year with a backlog worth US$ 193 million, down -31.3% on the figure of US$ 281 million at the end of 2007.