logo
Share SHARE
FONT-SIZE Plus   Neg

Astec Industries Q1 Profit Rises, But Misses Estimates - Quick Facts

Infrastructure equipment maker Astec Industries, Inc. (ASTE: Quote) said its first-quarter profit per share rose 20 percent from last year on a 16 percent sales growth, driven by strong international growth. However, earnings missed analysts' estimates due to margin pressure, as did sales.

Earnings increased to $12.2 million or $0.53 per share compared to $10.1 million or $0.44 per share last year. On average, ten analysts polled by Thomson Reuters expected the company to earn $0.61 per share.

Net sales rose to $266.6 million from $230.2 million last year, but missed analysts' estimates of $274.88 million. International sales increased 27 percent and domestic sales grew 9 percent, the company noted.

Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "Our sales growth was in line with our expectations but our gross margins are not where we want them. Although they improved over the fourth quarter of 2011, we will continue to focus on improving our gross margins and refining our manufacturing processes on our new products. " The company's domestic backlog has increased 30 percent since March 31 last year to end at $162.8 million at March 31, 2012

Looking ahead, Brock said, "We will continue to actively seek accretive bolt-on acquisitions and to develop new products to meet the needs of our customers."

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
American Airlines Group said pilots at its subsidiaries American Airlines and US Airways, represented by Allied Pilots Association, have approved a new five-year contract which provides immediate pay raises of 23 percent and subsequent annual raises of three percent for the next five years. LEGO Group, TT Games and Warner Bros. Interactive Entertainment have announced their 2015 slate of video games, including LEGO Jurassic World, LEGO Marvel's Avengers, and as well as new hand-held and mobile titles. Social-networking giant Facebook, Inc. is said to be testing their new 'Place Tips' feature for iOS users that will rival a similar service being provided by Yelp or Foursquare. The feature will provide the user relevant content about their location as long as they are there through pop ups on their news feed page of Facebook.
comments powered by Disqus
RELATED NEWS
Trade ASTE now with 
Follow RTT