Astec Industries 8K Reports Second Quarter Results | ASTE 25 Jul 11

Exhibit 99.1

Astec Industries, Inc.

News Release

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

ASTEC INDUSTRIES REPORTS SECOND QUARTER RESULTS

CHATTANOOGA, Tenn. (July 25, 2011) – Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their second quarter ended June 30, 2011.

The Company reported net income attributable to controlling interest of $14.1 million for the second quarter of 2011 compared to $10.3 million for the second quarter of 2010 for an increase of 36.9%. Net income attributable to controlling interest for the second quarter of 2011 was $0.61 per diluted share compared to $0.45 per diluted share for the second quarter of 2010 for a 35.6% increase.

Revenues for the second quarter of 2011 were $247.8 million compared with $209.2 million for the second quarter of 2010 for an 18.5% increase. Domestic sales were $139.5 million during the second quarter of 2011 compared to $129.2 million during the second quarter of 2010. International sales accounted for $108.3 million of revenues during the second quarter of 2011 compared to $80.0 million during the second quarter of 2010 and accounted for 43.7% of total sales for the second quarter of 2011 compared to 38.2% for the second quarter of 2010.

The Company’s backlog at June 30, 2011 was $217.1 million compared to $139.7 million at June 30, 2010 for a 55.4% increase. Domestic backlog increased 64.2% and international backlog increased 49.2%.

Consolidated financial statements for the second quarter ended June 30, 2011 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 are pleased with the performance of the Company during the second quarter especially considering the tough economic conditions that continue to persist. The 18.5% increase in revenues was largely attributable to the increase in international sales which accounted for 43.7% of the total sales during the second quarter. The lack of a long-term highway bill and concern about a solution to rising deficits are causing our domestic customers to continue to be cautious about making capital investments. We continue to investigate a number of potential acquisitions that will be complementary to our existing businesses.”

Dr. Brock continued, “On July 31, 2011, F. McKamy Hall will step down from the position of Chief Financial Officer. McKamy will become Vice President of Business Development and will head up our efforts in seeking and investigating opportunities for expansion of our businesses while still reporting directly to me. McKamy began his career with Astec in 1987 as Corporate Controller and became Vice President and Chief Financial Officer in 1998. I sincerely appreciate and want to thank McKamy for his years of service, assistance, and leadership as our Chief Financial Officer. Fortunately, McKamy’s contributions to our success are not over. I look forward to continuing to work with him as we seek to continue to grow our business.

David Silvious will be promoted from Corporate Controller to Vice President and Chief Financial Officer. David has been with Astec for twelve years and was in public accounting seven years prior to joining Astec. He is a CPA and has an MBA. David has been working for twelve years under McKamy’s guidance and supervision and has served as Corporate Controller since 2005. We are pleased and excited about his new duties and position.

Also, Steve Anderson will be promoted to Vice President of Administration and will retain his responsibilities as Corporate Secretary and Director of Investor Relations.”

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on July 25, 2011 at 10:00 A.M. Eastern Time to review its second 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 Saturday, August 6, 2011 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 375728. A transcription of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within 5 business 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 effects on the Company from its backlog, the effects of the economic downturn, the continued growth of our international business, the status of the multi-year highway bill and investigation of potential acquisitions and divestitures. 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 risks 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 effect 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, 2010.

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

F. McKamy Hall

Vice President and Chief Financial Officer

Phone: (423) 899-5898

Fax: (423) 899-4456

E-mail: mhall@astecindustries.com

Stephen C. Anderson

Secretary / Director of Investor Relations

Phone: (423) 899-5898

Fax: (423) 899-4456

E-mail: sanderson@astecindustries.com

David C. Silvious

Corporate Controller

Phone: (423) 899-5898

Fax: (423) 899-4456

Email: dsilvious@astecindustries.com

Astec Industries, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)

	June 30		June 30
	2011		2010
Assets
Current assets
Cash and cash equivalents	$	73,490	$	81,989
Receivables, net		103,842		84,736
Inventories		281,152		224,279
Prepaid expenses and other		24,261		18,205
Total current assets		482,745		409,209
Property and equipment, net		174,582		167,952
Other assets		33,880		34,035
Total assets	$	691,207	$	611,196
Liabilities and equity
Current liabilities
Accounts payable - trade	$	49,499	$	37,469
Other accrued liabilities		92,253		73,030
Total current liabilities		141,752		110,499
Other non-current liabilities		30,960		28,598
Total equity		518,495		472,099
Total liabilities and equity	$	691,207	$	611,196

Astec Industries, Inc.
Consolidated Statements of Income
(in thousands, except shares and share data)
(unaudited)

	Three Months Ended				SIx Months Ended
	June 30				June 30
	2011		2010		2011		2010
Net sales	$	247,756	$	209,249	$	477,945	$	402,704
Cost of sales		185,785		162,571		361,271		309,884
Gross profit		61,971		46,678		116,674		92,820
Selling, general, administrative & engineering expenses		38,789		30,824		78,278		63,542
Asset impairment charge		2,170		-		2,170		-
Income from operations		21,012		15,854		36,226		29,278
Interest expense		58		135		94		259
Other income, net of expenses		366		122		773		610
Income before income taxes		21,320		15,841		36,905		29,629
Income taxes		7,215		5,511		12,642		10,467
Net income		14,105		10,330		24,263		19,162
Net income attributable to noncontolling interest		19		22		33		60
Net income attributable to controlling interest	$	14,086	$	10,308	$	24,230	$	19,102


Earnings per Common Share
Net income attributable to controlling interest
Basic	$	0.62	$	0.46	$	1.07	$	0.85
Diluted	$	0.61	$	0.45	$	1.06	$	0.84


Weighted average common shares outstanding
Basic		22,576,222		22,507,078		22,571,192		22,490,431
Diluted		22,991,917		22,832,785		22,955,707		22,800,223

Astec Industries, Inc.
Segment Revenues and Profits
For the three months ended June 30, 2011 and 2010
(in thousands)
(unaudited)
	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground Group			All Others			Total
2011 Revenues		68,183			86,562			53,466			23,088			16,457			247,756
2010 Revenues		65,362			67,000			47,231			13,636			16,020			209,249
Change $		2,821			19,562			6,235			9,452			437			38,507
Change %		4.3	%		29.2	%		13.2	%		69.3	%		2.7	%		18.4	%

2011 Gross Profit		16,750			22,406			15,627			3,934			3,254			61,971
2011 Gross Profit %		24.6	%		25.9	%		29.2	%		17.0	%		19.8	%		25.0	%
2010 Gross Profit		14,961			15,199			12,233			868			3,417			46,678
2010 Gross Profit %		22.9	%		22.7	%		25.9	%		6.4	%		21.3	%		22.3	%
Change		1,789			7,207			3,394			3,066			(163	)		15,293

2011 Profit (Loss)		9,102			9,727			8,532			172			(13,565	)		13,968
2010 Profit (Loss)		7,574			4,973			6,264			(1,901	)		(6,069	)		10,841
Change $		1,528			4,754			2,268			2,073			(7,496	)		3,127
Change %		20.2	%		95.6	%		36.2	%		109.0	%		(123.5	%)		28.8	%

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 (in thousands):

	Three months ended June 30
	2011			2010			Change $
Total profit for all segments	$	13,968		$	10,841		$	3,127
Net income attributable to non-controlling interest in subsidiary		(19	)		(22	)		3
Recapture (elimination) of intersegment profit		137			(511	)		648
Net income attributable to controlling interest	$	14,086		$	10,308		$	3,778

Astec Industries, Inc.

Segment Revenues and Profits

For the six months ended June 30, 2011 and 2010

(in thousands)

(unaudited)

	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground Group			All Others			Total
2011 Revenues		141,937			165,415			103,421			34,755			32,417			477,945
2010 Revenues		135,423			125,919			89,314			22,563			29,485			402,704
Change $		6,514			39,496			14,107			12,192			2,932			75,241
Change %		4.8	%		31.4	%		15.8	%		54.0	%		9.9	%		18.7	%

2011 Gross Profit		35,978			41,155			29,067			4,057			6,417			116,674
2011 Gross Profit %		25.3	%		24.9	%		28.1	%		11.7	%		19.8	%		24.4	%
2010 Gross Profit		35,168			28,386			22,743			511			6,012			92,820
2010 Gross Profit %		26.0	%		22.5	%		25.5	%		2.3	%		20.4	%		23.0	%
Change		810			12,769			6,324			3,546			405			23,854

2011 Profit (Loss)		19,921			15,349			15,843			(3,677	)		(22,063	)		25,373
2010 Profit (Loss)		20,369			7,795			11,475			(5,443	)		(13,579	)		20,617
Change $		(448	)		7,554			4,368			1,766			(8,484	)		4,756
Change %		(2.2	%)		96.9	%		38.1	%		32.4	%		(62.5	%)		23.1	%

	Six months ended June 30
	2011			2010			Change $
Total profit for all segments	$	25,373		$	20,617		$	4,756
Net income attributable to non-controlling interest in subsidiary		(33	)		(60	)		27
Elimination of intersegment profit		(1,110	)		(1,455	)		345
Net income attributable to controlling interest	$	24,230		$	19,102		$	5,128

Astec Industries, Inc.

Backlog by Segment

June 30, 2011 and 2010

(in thousands)

(Unaudited)

	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground Group			All Others			Total
2011 Backlog		84,794			95,598			10,297			13,951			12,448			217,088
2010 Backlog		66,201			48,612			11,189			7,865			5,825			139,692
Change $		18,593			46,986			(892	)		6,086			6,623			77,396
Change %		28.1	%		96.7	%		(8.0	%)		77.4	%		113.7	%		55.4	%

Astec Industries (ASTE) 8-KAstec Industries Reports Second Quarter Results