Astec Industries Inc. officials demonstrate a piece of paving equipment.The congressional delay this spring in approving more federal money for road projects cut second-quarter earnings for Astec Industries Inc. and pushed shares of the Chattanooga-based asphalt equipment maker down by more than 6.1 percent.
Astec said Tuesday it earned $10.4 million, or 45 cents per share, during the three months ended June 30. The company’s earnings were down 26 percent from a year ago and were 22 cents per share below what analysts had expected.
Astec shares fell by $1.79 Tuesday to close at $27.52.
Federal highway funding bills were repeatedly delayed over the past year before Congress adopted a $120 billion, 27-month transportation plan last month just days before funding was about to run out. Astec officials said uncertainty over project funding slowed and stalled orders for Astec in the second quarter.
“There were deals that absolutely did not happen because of the extensions,” said Ben Brock, Astec’s president, on a conference call Tuesday morning. “It will take some time for that to come back.”