Chattanooga-based Astec profits up on 20 percent sales gain

Chattanooga-based Astec profits up on 20 percent sales gain

October 25th, 2011 by Dave Flessner in Local - Breaking News

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

Staff File Photo by John Rawlston Richard Beene prepares...

Astec Industries boosted third quarter sales by more than 20 percent this year, helping the Chattanooga-based asphalt equipment maker to report a 6.3 percent gain in net income.

Asec said today it earned $7.7 million, or 34 cents per share, on revenues of $214.6 million in the three months ended Sept. 30. In the same period a year ago, Astec earned $7.4 million, or 32 cents per share, on revenues of $177.9 million.

"Considering the overall condition of the domestic economy and the uncertainty in Washington, we continue to be pleased with the company's performance," Astec CEO J. Don Brock said in a statement today. "We believe during the next six months, we may see a new, enhanced six-year highway bill which should give more certainty to our domestic customers and hopefully we will see continued improvement in domestic business."

During the summer quarter, Astec completed a $3 million acquisition in Germany, added $7 million of new facilities in Australia and Germany and signed a manufacturing joint venture agreement in Brazil which will result in an initial investment of $12 million. Brock also said today that in late September Astec was awarded a contract to supply asphalt plants to the U.S. Army that could amount to $89 million in sales over the next five years.

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