Despite an 11.3% drop in sales in the first quarter, Astec Industries reported a gain in net income in the first quarter and beat analysts forecasts for operating results in the first three months of 2020.
The Chattanooga-based maker of equipment for building, paving and mining reported net income of $20.6 million, or 91 cents per share in the first quarter. A year ago in the same period, Astec earned $14.3 million, or 63 cents per share.
Astec's operating income of $15.1 million in the first quarter was down 16.7% from a year earlier after the company incurred a restructuring charges for closing of plants in Albuquerque, New Mexico and transferring operations to Chattanooga, and Burlington, Wisconsin sites.
But the results were still more than double the Zack's Equity Research consensus forecast for per share adjusted earnings.
"During the first quarter, we made significant progress against our initiatives to simplify the organization, the team executed our transformation plans despite the ongoing impact of COVID-19," said Barry Ruffalo, CEO of Astec Industries, Inc. "While we remain cautious given the global pandemic, we are well positioned to navigate the economic challenges ahead of us with a more efficient organizational structure, a strong balance sheet and ample liquidity."
Net sales in the quarter totaled $288.8 million and backlog as of March 31 was $245.8 million, up 3.8% from a year ago.
As of Wednesday, Astec said all but one of its facilities around the world are in operation. Only the plant in Omagh, Northern Ireland is now closed, although Astec did have temporary suspension of operations at plants in Johannesburg, South Africa, and Omagh, Northern Ireland, in observance of government mandates.
Shares of Astec rose 0.4%, or 15 cents per share, after the first quarter results were released, boosting Astec's stock to $37.93 per share. Astec's stock is down 9.4% so far this year but is still up 4.4% over the same time a year ago.