Astec Industries sales fell by 13% in the three-month period ended June 30, but the Chattanooga-based asphalt equipment maker exceeded analyst forecasts for sales and profits this spring after cutting costs and staff.
Astec said Wednesday its operating earnings in the second quarter fell by 64.4% to $10.9 million on net sales of $265.3 million. Domestic sales decreased 10% in the quarter to $24.7 million and international sales fell by 25.3% to $14.8 million or 25.3% due to COVID-19 related business disruptions this spring.
Astec was forced to idle its plants in Johannesburg, South Africa, and Omagh, Northern Ireland, for about a month due to government-ordered shutdowns and the company closed its facility in Mequon, Wisconsin and shifted that production to other sites. But Astec said all facilities are now back in production.
Over the past year, Astec has cut its staff by 15% and suspended all hiring, except in critical conditions.
“During the second quarter, we continued to make significant progress against our initiatives to Simply, Focus and Grow our business,” said Barry Ruffalo, who took over as CEO of Astec in June 2019. “While we remain cautious given the global pandemic, we are well positioned to navigate the economic challenges ahead of us with a more efficient and streamlined organizational structure, a strong balance sheet and ample liquidity.”