Astec earnings rise in quarter

Astec earnings rise in quarter

July 25th, 2011 in Local - Breaking News

Staff File Photo by John Rawlston Richard Beene prepares a portable surge bin for shipment at Astec Industries.

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Buoyed by higher sales abroad, Astec Industries today reported a 36.9 percent increase in net income attributable to controlling interest.

The Chattanooga-based asphalt equipment maker earned $14.1 million, or 61 cents per diluted share, on sales of $247.8 million in the three months ended June 30. In the same period a year ago, Astec reported comparable earnings of $10.3 million, or 45 cents per diluted share.

Most of the increase in business came from international sales, Astec CEO J. Don Brock said.

Domestic sales were $139.5 million during the second quarter of 2011 compared to $129.2 million during the second quarter of last year. International sales accounted for $108.3 million of revenues during the second quarter of 2011 compared to $80 million during the second quarter of 2010.

"We are pleased with the performance of the company during the second quarter especially considering the tough economic conditions that continue to persist," Brock said in a statement today. "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."

Brock also announced today that Astec's chief financial officer, F. McKamy Hall, will step down from the position on July 31 to become vice president of business development "and will head up our efforts in seeking and investigating opportunities for expansion of our businesses."

David Silvious, a 12-year employee at Astec, will be promoted from corporate controller to chief financial officer.