Benjamin G. Brock, Astec Industries chief executiveDespite a drop in fourth quarter profits and sales, Astec Industries Inc. stayed ahead of its projections at the end of 2017 and predicted better results in 2018.
The Chattanooga-based asphalt and equipment maker said Tuesday that fourth quarter net income was down 11.3 percent to $10.9 million, or 47 cents per share (including an income tax benefit from the new tax change) on sales of $312.4 million. In the same period a year ago. Astec earned $12.4 million, or 53 cents per share, on sales of $326.6 million.
Earnings for all of 2017 fell 31.5 percent to $37.8 million, or $1.63 per share, on sales of $1.147 billion, or 3.3 percent less than the prior year.
Astec CEO Ben Brock said last year was a year of transition with new wood pellet plants and other new products, and he said the company has an historically strong backlog of more than $411 million of orders waiting to be filled in 2018.
“We were pleased to exceed our previously announced earnings projection for the quarter while increasing our backlog,” Brock said in the earnings announcement. “Given our backlog, quote activity and conversations with our customers in both domestic and international markets we are optimistic on our outlook. Our customers are experiencing good market conditions and we are excited for the opportunity to have improved results in 2018.”
Despite Brock’s optimism, shares of Astec Industries fell by nearly 2.6 percent, or $1.58 per share, to close at $60.03 in trading Tuesday.