Astec Industries Inc.
) reported third-quarter 2013 earnings of 28 cents per share,
declined 3.4% from 29 cents in the year-earlier quarter. The
results fell short of the Zacks Consensus Estimate of 37 cents.
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Total revenue decreased 2% to $213.2 million from $218.4 million
in the year-ago quarter, missing the Zacks Consensus Estimate of
$236 million. The year-over-year decline was primarily driven by
lack of equipment sales in the Aggregate and Mining Group.
Domestic sales dropped 1% year over year to $132.4 million.
International sales were at $80.8 million down 4% year over year
due to declined sales, primarily in Europe, Canada and South
America. Brazil, Africa and the Middle East also recorded low
sales, but were partially offset by the increase in post-Soviet
Cost of sales fell 2% year over year to $167.4 million. Gross
profit was $45.8 million, down 3.2% from $47.3 million in the
year-ago quarter. Gross margin contracted 20 basis points (bps)
year over year to 21.5%, affected by the decrease in overhead
Selling, general, administrative & engineering expenses were
$36.6 million in the reported quarter compared with $38.4 million
in the year-ago quarter. Income from operations increased 3% year
over year to $9 million. Consequently, operating margin expanded
30 bps year over year to 4.3%.
Revenues in the
segment rose 0.6% to $47.1 million from $46.8 million in the
year-ago quarter. Segment profit grew significantly by around
109% to $4.9 million from $2.3 million in the prior-year quarter.
Total revenue for the
Aggregate and Mining Group
segment went down 13.1% year over year to $79.8 million. Segment
profit was $6.8 million versus $8.7 million in the prior-year
quarter, down 22%.
Mobile Asphalt Paving Group
segment's total revenue decreased 3.3% to $35.4 million from
$36.6 million in the year-ago quarter. However, segment profit
rose 26.2% year over year to $2.1 million.
reported total revenue of $27.3 million, up 32.8% from $20.5
million in the year-earlier quarter. However, the segment
reported a loss of $0.8 million compared with the loss of $0.1
million a year ago.
reported revenues of $23.6 million versus $22.6 million in the
year-ago quarter. Segment loss was $5.6 million, slightly wider
than the year-ago quarter's loss of $5.2 million.
Cash and cash equivalents amounted to $46 million as of Sep 30,
2013, up from $35.6 million as of Sep 30, 2012. Astec has no debt
on its balance sheet. Astec's domestic backlog increased 20% to
$132.9 million as of Sep 30, 2013 from $110.6 million as of Sep
30, 2012. Conversely, the company's international backlog
declined 20% to $95.6 million as of Sep 30, 2013 from $120.1
million as of Sep 30, 2012.
Astec will benefit from new product introductions and growth in
the oil and gas business. Its first pellet plant in Georgia is
expected to start production before the end of the year. The
company is also making progress on the construction of a
manufacturing facility in Brazil. In addition Astec's continuous
endeavor for acquisitions will assist in the expansion of product
offering and market coverage.
Astec's strategic program, including the merger of Astec
Underground and GEFCO to create an energy group and remove the
Underground group, will drive long-term growth. The company
continues to expand with a new pellet plant, high tech drill
rigs, pump trailers, water heaters and gas processing heaters.
Lack of clarity on the future of highway funding made customers
cautious regarding spending on major equipment purchases, which
affected its performance. Adverse weather conditions, increasing
competition and ongoing economic uncertainties remain headwinds
in the future.
Chattanooga, Tenn.-based Astec is a manufacturer of specialized
equipment for infrastructural building and restoration.
Astec currently maintains a Zacks Rank #3 (Hold). Another company
belonging to the industrial product sector,
Lonking Holdings Ltd.
), holds a Zacks Rank #2 (Buy). Astec's peers such as
H&E Equipment Services Inc.
) are yet to announce their quarterly results.