Astec Industries Inc.
) reported second-quarter 2013 earnings of 48 cents per share, up
17% from 41 cents in the year-earlier quarter. The results missed
the Zacks Consensus Estimate of 55 cents.
Total revenue increased 4% to $248.1 million from $238.3 million
in the year-ago quarter but missed the Zacks Consensus Estimate
of $256 million. Domestic sales increased 5% year over year to
$162.3 million. International sales were also up 2% year over
year at $85.8 million.
Cost of sales increased 4% to $192.6 million from $185 million in
the prior-year quarter. Gross profit was $55 million, up 4% from
$53 million in the year-ago quarter. Gross margin remained flat
year over year at 23%.
Selling, general, administrative & engineering expenses were
$37.8 million in the reported quarter compared with $38 million
in the year-ago quarter. Income from operations increased 20.8%
year over year to $17.6 million. Operating margin expanded 100
basis points to 7.1% from 6.1% in the second quarter of 2012.
Revenues in the
segment grew 6.3% to $63 million from $59 million in the year-ago
quarter. Segment profit went up 4% to $4 million from $3.9
million in the prior-year quarter due to a negative impact from
the absorption variance.
Total revenue for the
Aggregate and Mining Group
segment went up 5.3% to $99.8 million in the quarter from $94.8
million in the prior-year quarter. Segment profit was $11.1
million versus $11.5 million in the prior-year quarter, down
Mobile Asphalt Paving Group
segment's total revenue increased 1.3% to $45.7 million from $45
million in the year-ago quarter. Segment profit rose 12.9% to
$4.6 million from $4 million in the year-earlier quarter.
reported revenues of $17 million versus $19 million in the
year-ago quarter. The segment reported a loss of $0.77 million
compared with a loss of $0.87 million a year ago.
reported total revenue of $22 million, up 13.5% from $19.6
million in the year-earlier quarter. Segment loss was $7.7
million, narrower than the year-ago quarter's loss of $8.2
Cash and cash equivalents amounted to $41 million as of Jun 30,
2013, up from $35.9 million as of Jun 30, 2012. The company has
no debt on its balance sheet. Astec's domestic backlog decreased
5% to $140.3 million as of Jun 30, 2013 from $147.1 million as of
Jun 30, 2012. The international backlog also declined 7% to
$100.3 million as of Jun 30, 2013 from $107.7 million as of Jun
Astec will benefit from the pick-up in construction as well as
the new 27-month highway bill. Product launches, new facility in
Brazil and orders in the Asphalt segment will help in driving the
company's long-term growth. The approval of tax credit by the
U.K. Parliament for utilities to burn wood pellets as a source of
fuel opens up a sizeable opportunity for Astec for further growth
in the wood pellet plant business.
During the first half of 2013, strong dollar value and adverse
weather conditions affected international sales. Astec, however,
is optimistic about improvement in residential and commercial
work. Earnings were also hurt by higher health care cost, higher
taxes for its Canadian subsidiary and from the GEFCO acquisition.
Astec's strategic program including the merger of Astec
Underground into GEFCO to create an energy group and remove the
Underground group will drive long-term growth. The company is
also expected to expand its energy business with a new pellet
plant, high tech drill rigs, pump trailers, water heaters and gas
Chattanooga, TN-based Astec is a manufacturer of specialized
equipment for building and restoring the world's infrastructure.
Astec currently maintains a Zacks Rank #3 (Hold). Astec's peers
The Manitowoc Company, Inc.
Joy Global, Inc.
) are yet to announce their quarterly results.
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