Astec Industries (ASTE) 8-K Astec Industries Reports First Quarter Earnings

Astec Industries, Inc.

News Release

  1725 Shepherd Road  | Chattanooga, TN  37421  | Phone (423) 899-5898  | Fax (423) 899-4456

ASTEC INDUSTRIES REPORTS FIRST QUARTER EARNINGS

CHATTANOOGA, Tenn. (April 20, 2010) - Astec Industries, Inc. (Nasdaq:  ASTE) today reported results for their first quarter ended March 31, 2010.

Revenues for the first quarter of 2010 were $193.5 million compared with $205.3million for the first quarter of 2009 for a 5.7% decrease.  Domestic sales accounted for 67.0% and international sales for 33.0% of revenues during the first quarter of 2010 compared to 64.3% for domestic sales and 35.7% for international sales during the first quarter of 2009.  The Company reported net income attributable to controlling interest of $8.8 million for the first quarter of 2010 compared to $7.4 million for the first quarter of 2009 for an increase of 18.9%.   Earnings for the first quarter of 2010 were $.39 per diluted share compared to $.33 per diluted share for the first quarter of 2009 for an 18.2% increase.

The Company’s backlog at March 31, 2010 was $134.8 million compared to $140.1 million at March 31, 2009 for a 3.8% decrease.

Consolidated financial information for the first quarter ended March 31, 2010 and additional information related to segment revenues and profits are attached as addenda to this press release.

Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, “We continued to see weak volumes in each of our groups except the Mobile Asphalt Paving Group during the first quarter.  However, due to cost reductions made in 2009, our net income improved.  We believe we may  have reached the bottom of the economic cycle in the fourth quarter of 2009 and hope to see modest improvements in the remainder of the year helped by more parts sales and an increase in international sales.”

Dr. Brock continued, “Our customers continue to be reluctant to make large expenditures due to the uncertainty regarding state and federal taxes, healthcare reform, proposed “cap and trade” legislation and federal highway spending.  As a result, we will continue to adjust our businesses to reach more international markets and different industries, such as mining and energy.”

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on April 20, 2010, at 10:00 A.M. Eastern Time to review its first quarter results as well as current business conditions.  The number to call for this interactive teleconference is (877) 407-9210.  International callers should dial (201) 689-8049.   Please reference Astec Industries.

The company will also provide an online Web simulcast and rebroadcast of the conference call.  The live broadcast of Astec’s conference call will be available online at the Company’s website:  www.astecindustries.com/conferencecalls. An archived webcast will be available for 90 days at www.astecindustries.com.

A replay of the conference call will be available through midnight on Tuesday, May 4, 2010 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 349364.  A transcription of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within 5 days after the call.

   Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world’s infrastructure.  Astec’s equipment and manufacturing operations are divided into four primary business groups:  aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.  The Other Group contains wood processing equipment manufacturing and Australian distribution for several of the Astec companies as well as Corporate.

The information contained in this press release contains “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about the Company’s financial performance for the remainder of 2010, the effects on the Company from its backlog, the effects of and the timing of the economic downturn and recovery, and our efforts to grow our international business.  These forward-looking statements reflect management’s expectations and are based upon currently available information, and the Company undertakes no obligation to update or revise such statements.  These statements are not guarantees of performance and are inherently subject to r isks and uncertainties, many of which cannot be predicted or anticipated.  Future events and actual results, financial or otherwise, could differ materially from those expressed in or implied by the forward-looking statements.  Important factors that could cause future events or actual results to differ materially include:  general uncertainty in the economy, future downturns in the economy, rising oil and liquid asphalt prices, rising steel prices, the affect of any future federal stimulus package, decreased funding for highway projects, tax and healthcare reform, the relative strength/weakness of the dollar to foreign currencies, production capacity, general business conditions in the industry, demand for the Company’s products, seasonality and cyclicality in operating results, seasonality of sales volumes or lower than expected sales volumes, lower than expected margins on custom equipment orders, competitive activity and those other factors listed from time to time in the Company’s reports filed with the Securities and Exchange Commission, including but not limited to the Company’s annual report on Form 10-K for the year ended December 31, 2009.

For Additional Information Contact:

J. Don Brock

Chairman of the Board & C.E.O.

Phone: (423) 867-4210

Fax: (423) 867-4127

E-mail: dbrock@astecindustries.com

or

F. McKamy Hall

Vice President and Chief Financial Officer

Phone: (423) 899-5898

Fax: (423) 899-4456

E-mail: mhall@astecindustries.com

or

Stephen C. Anderson

Director of Investor Relations & Corporate Secretary

Phone: (423) 899-5898

Fax: (423) 899-4456

E-mail: sanderson@astecindustries.com

Astec Industries, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

	Mar 31		Mar 31
	2010		2009
Assets
Current assets
Cash and cash equivalents	$	49,184	$	10,563
Receivables, net		83,221		80,456
Inventories		246,432		277,994
Prepaid expenses and other		20,448		20,466
Total current assets		399,285		389,479
Property and equipment, net		169,299		168,196
Other assets		34,624		47,715
Total assets	$	603,208	$	605,390
Liabilities and equity
Current liabilities
Revolving credit loan	$	-	$	18,379
Accounts payable - trade		42,171		41,953
Other accrued liabilities		67,064		70,725
Total current liabilities		109,235		131,057
Other non-current liabilities		31,268		27,562
Total equity		462,705		446,771
Total liabilities and equity	$	603,208	$	605,390

Astec Industries, Inc.

Consolidated Statements of Operations

(In thousands)

(Unaudited)

	Three Months Ended
	Mar 31
	2010		2009
Net sales	$	193,454	$	205,304
Cost of sales		147,313		161,594
Gross profit		46,141		43,710
Selling, general, administrative & engineering expenses		32,718		31,426
Income from operations		13,423		12,284
Interest expense		123		183
Other income, net of expenses		488		(34	)
Income before income taxes		13,788		12,067
Income taxes		4,956		4,671
Net income		8,832		7,396
Net income (loss) attributable to noncontolling interest		38		(35	)
Net income attributable to controlling interest	$	8,794	$	7,431
Earnings per Common Share
Net income attributable to controlling interest
Basic	$	0.39	$	0.33
Diluted	$	0.39	$	0.33
Weighted average common shares outstanding
Basic		22,473,599		22,430,546
Diluted		22,767,460		22,663,415

Astec Industries, Inc.

Segment Revenues and Profits

For the three months ended March 31, 2010 and 2009

(in thousands)

(Unaudited)

	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground  Group			All Others			Total
2010 Revenues		70,061			58,919			42,082			8,927			13,465			193,454
2009 Revenues		83,252			51,577			31,404			20,246			18,825			205,304
Change $		(13,191	)		7,342			10,678			(11,319	)		(5,360	)		(11,850	)
Change %		(15.8	%)		14.2	%		34.0	%		(55.9	%)		(28.5	%)		(5.8	%)
2010 Gross Profit		20,207			13,187			10,510			(357	)		2,594			46,141
2010 Gross Profit %		28.8	%		22.4	%		25.0	%		(4.0	%)		19.3	%		23.9	%
2009 Gross Profit		20,623			11,143			6,620			2,759			2,565			43,710
2009 Gross Profit %		24.8	%		21.6	%		21.1	%		13.6	%		13.6	%		21.3	%
Change		(416	)		2,044			3,890			(3,116	)		29			2,431
2010 Profit (Loss)		12,795			2,822			5,210			(3,542	)		(7,510	)		9,775
2009 Profit (Loss)		11,999			1,772			2,004			(2,341	)		(6,835	)		6,599
Change $		796			1,050			3,206			(1,201	)		(675	)		3,176
Change %		6.6	%		59.3	%		160.0	%		(51.3	%)		(9.9	%)		48.1	%

Certain amounts for 2009 have been reclassified to conform with the 2010 presentation.

Segment revenues are reported net of intersegment revenues.  Segment gross profit is net of profit on intersegment revenues.
  A reconciliation of total segment profits to the Company's net income attributable to controlling interest is as follows:

	For the three months ended March 31
	2010			2009
Total profit for all segments	$	9,775		$	6,599
Net (income) loss attributable to noncontrolling interest in subsidiary		(38	)		35
Recapture (elimination) of intersegment profit		(943	)		797
Net income attributable to controlling interest	$	8,794		$	7,431

Astec Industries, Inc.

Backlog by Segment

March 31, 2010 and 2009

(in thousands)

(Unaudited)

	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground Group			All Others			Total
2010 Backlog		70,464			41,176			13,509			5,096			4,593			134,838
2009 Backlog		73,971			55,138			1,788			6,911			2,291			140,099
Change $		(3,507	)		(13,962	)		11,721			(1,815	)		2,302			(5,261	)
Change %		(4.7	%)		(25.3	%)		655.5	%		(26.3	%)		100.5	%		(3.8	%)