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Chattanooga-based Astec Industries is paving a growth plan

Brian Dickerson, foreground, welds while Kris Nichols waits to assist as they work inside a double barrel mixer/dryer at the Astec Industries manufacturing facility in Chattanooga. Astec boosted its first quarter earnings from improved results in its asphalt equipment sales, which more than made up for weaker international sales due to lower oil drilling and mining activity.
Brian Dickerson, foreground, welds while Kris Nichols waits to assist as they work inside a double barrel mixer/dryer at the Astec Industries manufacturing facility in Chattanooga. Astec boosted its first quarter earnings from improved results in its asphalt equipment sales, which more than made up for weaker international sales due to lower oil drilling and mining activity.

By Dave Flessner 3 min read

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.

photo Ben Brock
photo Astec makes pellet production plants that produce wood pellets used for fuel. Astec said it sold a $122.5 million pellet processing plant in the first quarter.

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.