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Astec Industries profit falls short on state funding delays
July 24, 2012 / 12:37 PM / 5 years ago

Astec Industries profit falls short on state funding delays

* Q2 EPS $0.45 vs est $0.67

* Q2 Sales $253.9 mln vs est $282.4 mln

* Sales in Asphalt Group fall 12.8 pct

* Sales in Mobile Asphalt Paving Group fall 15.5 pct

July 24 (Reuters) - Specialized equipment maker Astec Industries Inc reported lower-than-expected quarterly results, hurt by delays and funding uncertainties in U.S. state transportation departments.

“The series of 90-day highway bill continuations that lasted through the second quarter ... resulted in delays in, and in some cases the elimination of, projects during the peak road construction season,” Chief Executive Dr. J. Don Brock said in a statement.

Astec makes equipment and components used primarily in road building, and utility and related construction.

Net income fell to $10.4 million, or 45 cents per share, in the second quarter, from $114.1 million, or 61 cents per share, a year earlier. Total revenue rose 2 percent to $253.9 million.

Sales in the Asphalt Group fell by 12.8 percent while those in the Mobile Asphalt Paving Group fell by 15.5 percent.

Analysts on average had expected earnings of 67 cents per share on revenue of $282.4 million, according to Thomson Reuters I/B/E/S.

Shares of the company, which competes with Lindsay Corp and Toro Co, closed at $29.31 on Monday on the Nasdaq.

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