Congressional approval last year of a long-delayed highway spending bill paved the way for improved domestic sales and profits for Astec Industries, which said Tuesday it is looking for additional acquisitions to further grow its business.
Despite a plunge in international sales due to currency changes and lower oil and commodity prices, Astec Industries Inc. boosted its first quarter earnings by 18.5 percent and beat Wall Street expectations in the first three months of the year.
The Chattanooga-based asphalt equipment maker said Tuesday it earned $17.7 million, or 77 cents per share, on net sales of $278.7 million in the first three months of 2016. In the same period a year ago, Astec earned $15.1 million, or 65 cents per share, on sales of $288.7 million.
The earnings results were 6 cents per share ahead of what analysts had forecast for Astec in the first quarter, although revenues were below expectations.
Wall Street welcomed the better-than-expected results and boosted shares of Astec by nearly 2.2 percent, or $1 per share, to $47 per share. Astec shares are up a strong 15.7 percent so far this year.
