Astec Industries (ASTE) 8-K Astec Industries Reports Third Quarter 2015 Results

Exhibit 99-1

Astec Industries, Inc.

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

News Release

ASTEC INDUSTRIES REPORTS THIRD QUARTER 2015 RESULTS

CHATTANOOGA, Tenn. (October 20, 2015) - Astec Industries, Inc. (Nasdaq:  ASTE) today reported results for their third quarter ended September 30, 2015.

Net sales for the third quarter of 2015 were $211.4 million compared to $220.2million for the third quarter of 2014, a 4% decrease.  Earnings for the third quarter of 2015 were $2.3 million or $0.10 per diluted share compared to $1.9 million or $0.08 per diluted share in the third quarter of 2014, an increase of 25%.

Domestic sales increased 10% to $156.3 million for the third quarter of 2015 compared to $142.6 million for the third quarter of 2014.  International sales decreased 29% to $55.1 million for the third quarter of 2015 compared to $77.6 million for the third quarter of 2014.

Net sales for the first nine months of 2015 were $768.1 million compared to $736.1million for the first nine months of 2014, a 4% increase.  Earnings for the first nine months of 2015 were $29.2 million or $1.26 per diluted share compared to $26.0 million or $1.12 per diluted share in the first nine months of 2014, a 12% increase.

Domestic sales increased 12% to $562.0 million for the first nine months of 2015 compared to $502.7 million for the first nine months of 2014.  International sales were $206.1 million for the first nine months of 2015 compared to $233.4 million for the first nine months of 2014, a 12% decrease.

The Company's domestic backlog decreased 1%, from $189.2 million at September 30, 2014 to $187.5 million at September 30, 2015.  The international backlog at September 30, 2015 was $58.1 million compared to $105.8 million at September 30, 2014 for a decrease of 45%.  Total backlog decreased 17% to $245.6 million at September 30, 2015 from $295.0 million at September 30, 2014.

Consolidated financial information for the quarter and nine months ended September 30, 2015 and additional information related to segment revenues and profits are attached as addenda to this press release.

Commenting on the announcement, Benjamin G. Brock, President and Chief Executive Officer, stated, "We were pleased to improve our earnings by 25% in the third quarter versus the third quarter of last year, especially given the current headwinds we are facing, including low oil prices, the global mining slow down, the strong U.S. Dollar, and the absence of a long-term highway bill in the United States."

Mr. Brock continued, "Low oil prices have hurt our Energy Group sales.  The mining slowdown has hurt our Aggregate and Mining Group sales.  The strong U.S. Dollar has hurt our international sales and the lack of a long-term highway bill has hurt all of our groups."

Mr. Brock concluded, "Despite these headwinds, our year-to-date revenues are up 4% and our year-to-date earnings are up 12% versus last year.  We have accomplished these increases through a variety of efforts, but two that stand out are our new product offerings that have allowed us to secure many of the orders we have shipped this year and our lean manufacturing initiatives which have improved margins and earnings.  We remain committed to new product releases in each of our groups in order to earn more business moving ahead.  Eventually the headwinds will subside and we will be well positioned to take advantage when they do."

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on October 20, 2015, at 10:00 A.M. Eastern Time to review its September 30, 2015 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, November 3, 2015 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 13622090.  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 asphalt road building; aggregate processing; oil, gas and water well drilling; and wood processing.  Astec's manufacturing operations are divided into three primary business segments:  road building and related equipment (Infrastructure Group); aggregate processing and mining equipment (Aggregate and Mining Group); and equipment for the extraction and production of fuels, biomass production, and water drilling equipment (Energy Group).

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 low oil prices, the global mining slow down, the strong U.S. Dollar, and the absence of a long-term highway bill in the United States.  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, oil and liquid asphalt prices, rising steel prices, decreased funding for highway projects, 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, tax rates and the impact of future legislation thereon, 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, 2014.

For Additional Information Contact:Benjamin G. BrockChief Executive OfficerPhone: (423) 867-4210Fax: (423) 867-4127E-mail: bbrock@astecindustries.comor

David C. SilviousVice President and Chief Financial Officer

Phone: (423) 899-5898

Fax: (423) 899-4456E-mail: dsilvious@astecindustries.com

or

Stephen C. Anderson

Vice President, Director of Investor Relations & Corporate Secretary

Phone: (423) 899-5898

Fax: (423) 899-4456

E-mail: sanderson@astecindustries.com

Astec Industries, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
	Sept 30		Sept 30
	2015		2014
Assets
Current assets
Cash and cash equivalents	$	13,985	$	13,820
Investments		1,834		1,903
Receivables, net		105,226		108,844
Inventories		384,531		370,436
Prepaid expenses and other		50,398		36,629
Total current assets		555,974		531,632
Property and equipment, net		170,508		190,395
Other assets		60,805		66,554
Total assets	$	787,287	$	788,581
Liabilities and equity
Current liabilities
Accounts payable - trade	$	46,406	$	53,034
Other current liabilities		91,568		97,059
Total current liabilities		137,974		150,093
Non-current liabilities		36,919		40,139
Total equity		612,394		598,349
Total liabilities and equity	$	787,287	$	788,581

Astec Industries, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
	Three Months Ended Sept 30				Nine Months Ended Sept 30
	2015		2014		2015		2014
Net sales	$	211,350	$	220,157	$	768,141	$	736,086
Cost of sales		166,212		176,896		594,724		573,890
Gross profit		45,138		43,261		173,417		162,196
Selling, general, administrative & engineering expenses		41,023		38,867		128,136		122,539
Income from operations		4,115		4,394		45,281		39,657
Interest expense		505		193		1,222		375
Other		844		860		3,212		2,410
Income before income taxes		4,454		5,061		47,271		41,692
Income taxes		2,162		3,145		18,070		15,734
Net income attributable to controlling interest	$	2,292	$	1,916	$	29,201	$	25,958
Earnings per Common Share
Net income attributable to controlling interest
Basic	$	0.10	$	0.08	$	1.27	$	1.14
Diluted	$	0.10	$	0.08	$	1.26	$	1.12
Weighted average common shares outstanding
Basic		22,943		22,830		22,930		22,813
Diluted		23,121		23,109		23,118		23,103

Astec Industries, Inc.
Segment Revenues and Profits
For the three months ended September 30, 2015 and 2014
(in thousands)
(unaudited)
	Infrastructure Group			Aggregate and Mining Group			Energy Group			Corporate			Total
2015 Revenues		85,625			80,549			45,176			-			211,350
2014 Revenues		78,698			88,177			53,282			-			220,157
Change $		6,927			(7,628	)		(8,106	)		-			(8,807	)
Change %		8.8	%		(8.7	%)		(15.2	%)		-			(4.0	%)
2015 Gross Profit		16,104			19,226			9,794			14			45,138
2015 Gross Profit %		18.8	%		23.9	%		21.7	%		-			21.4	%
2014 Gross Profit		11,367			21,604			10,277			13			43,261
2014 Gross Profit %		14.4	%		24.5	%		19.3	%		-			19.7	%
Change		4,737			(2,378	)		(483	)		1			1,877
2015 Profit (Loss)		2,116			3,790			1,941			(6,853	)		994
2014 Profit (Loss)		520			6,806			2,789			(7,137	)		2,978
Change $		1,596			(3,016	)		(848	)		284			(1,984	)
Change %		306.9	%		(44.3	%)		(30.4	%)		4.0	%		(66.6	%)

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 September 30
	2015		2014			Change $
Total profit for all segments	$	994	$	2,978		$	(1,984	)
Recapture (elimination) of intersegment profit		964		(1,212	)		2,176
Net loss attributable to non-controlling interest		334		150			184
Net income attributable to controlling interest	$	2,292	$	1,916		$	376

Astec Industries, Inc. 

 Segment Revenues and Profits 

 For the nine months ended September 30, 2015 and 2014 

(in thousands)  

(unaudited)  

	Infrastructure Group			Aggregate and Mining Group			Energy Group			Corporate			Total
2015 Revenues		336,768			285,790			145,583			-			768,141
2014 Revenues		296,074			287,976			152,036			-			736,086
Change $		40,694			(2,186	)		(6,453	)		-			32,055
Change %		13.7	%		(0.8	%)		(4.2	%)		-			4.4	%
2015 Gross Profit		74,292			70,182			28,912			31			173,417
2015 Gross Profit %		22.1	%		24.6	%		19.9	%		-			22.6	%
2014 Gross Profit		59,135			70,722			32,309			30			162,196
2014 Gross Profit %		20.0	%		24.6	%		21.3	%		-			22.0	%
Change		15,157			(540	)		(3,397	)		1			11,221
2015 Profit (Loss)		29,472			25,441			2,805			(29,154	)		28,564
2014 Profit (Loss)		21,124			27,065			7,659			(27,578	)		28,270
Change $		8,348			(1,624	)		(4,854	)		(1,576	)		294
Change %		39.5	%		(6.0	%)		(63.4	%)		(5.7	%)		1.0	%

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):

	Nine months ended September 30
	2015			2014			Change $
Total profit for all segments	$	28,564		$	28,270		$	294
Elimination of intersegment profit		(32	)		(2,468	)		2,436
Net loss attributable to non-controlling interest		669			156			513
Net income attributable to controlling interest	$	29,201		$	25,958		$	3,243

Astec Industries, Inc.
Backlog by Segment
September 30, 2015 and 2014
(in thousands)
(unaudited)
	Infrastructure Group			Aggregate and Mining Group			Energy Group			Total
2015 Backlog		145,073			68,110			32,432			245,615
2014 Backlog		135,895			80,978			78,156			295,029
Change $		9,178			(12,868	)		(45,724	)		(49,414	)
Change %		6.8	%		(15.9	%)		(58.5	%)		(16.7	%)