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Astec Industries Inc. Reports Operating Results (10-Q)

August 09, 2010 | About:
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10qk

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Astec Industries Inc. (ASTE) filed Quarterly Report for the period ended 2010-06-30.

Astec Industries Inc. has a market cap of $688.88 million; its shares were traded at around $30.48 with a P/E ratio of 33.49 and P/S ratio of 0.93. Astec Industries Inc. had an annual average earning growth of 8.1% over the past 5 years.ASTE is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc., Chuck Royce of Royce& Associates, Manning & Napier Advisors, Inc, Arnold Van Den Berg of Century Management.

Highlight of Business Operations:

Domestic sales for the second quarter of 2010 were $129,289,000 or 61.8% of consolidated net sales compared to $129,250,000 or 68.4% of consolidated net sales for the second quarter of 2009, an increase of $39,000. International sales for the second quarter of 2010 were $79,960,000 or 38.2% of consolidated net sales compared to $59,593,000 or 31.6% of consolidated net sales for the second quarter of 2009, an increase of $20,367,000 or 34.2%. Domestic sales were negatively impacted by the lack of action by Congress in renewing the long-term highway bill to replace the previous bill that expired in September 2009. The overall increase in international sales for the second quarter of 2010 compared to the second quarter of 2009 is due to improved economic conditions in several of the international markets the company serves and the adoption of stimulus packages with significant emphasis on the development of highways. The increases occurred primarily in Canada, Australia, South America, the West Indies and Europe.

Domestic sales for the first six months of 2010 were $258,740,000 or 64.3% of consolidated net sales compared to $261,181,000 or 66.3% of consolidated net sales for the first six months of 2009, a decrease of $2,441,000 or 0.9%. International sales for the first six months of 2010 were $143,964,000 or 35.7% of consolidated net sales compared to $132,967,000 or 33.7% of consolidated net sales for the first six months of 2009, an increase of $10,997,000 or 8.3%. Domestic sales were negatively impacted by the lack of action by Congress in renewing the new long-term highway bill to replace the previous bill that expired in September 2009. The overall increase in international sales for the first six months of 2010 compared to the first six months of 2009 is due to improved economic conditions in several of the international markets the company serves and the adoption of stimulus packages with significant emphasis on the development of highways. The year-to-date increases occurred primarily in Canada, South America, Central America and Africa.

Selling, general, administrative and engineering expenses for the second quarter of 2010 were $30,824,000, or 14.7% of net sales, compared to 31,607,000, or 16.7% of net sales, for the second quarter of 2009, a decrease of $783,000, or 2.5%. The decrease was primarily due to a decrease in SERP expense of $460,000 and expenses related to restricted stock units of $424,000, both of which primarily resulted from a decrease in the Company s stock price from March 31, 2010 to June 30, 2010. Additionally, sales promotional expense decreased $517,000 and research and development decreased $441,000. These cost savings were offset by an increase in sales commissions of $571,000 due to increased sales volumes, an increase in profit sharing expense increase of $439,000 due to improved performance at certain subsidiaries, and an increase of $534,000 in expenses related to the Bauma trade show which is held every three years.

Selling, general, administrative and engineering expenses for the six months ending June 30, 2010 were $63,542,000, or 15.8% of net sales, compared to $63,034,000, or 16.0% of net sales, for the first six months of 2009, an increase of $508,000, or 0.8%. The increase was primarily related to an increase in profit sharing expense of $1,057,000 due to improved performance at certain subsidiaries, an increase in sales commissions of $537,000 due to increased sales volumes and an increase of $984,000 in expenses related to the Bauma trade show which is held every three years. These increases were offset by decreases in sales promotional expense of $452,000 and bad debt expense of $479,000.

The Company had net income attributable to controlling interest of $10,308,000 for the second quarter of 2010 compared to $7,749,000 in the second quarter of 2009, an increase of $2,559,000, or 33.0%. Earnings per diluted share were $0.45 in the second quarter of 2010 compared to $0.34 in the second quarter of 2009, an increase of $0.11 or 32.4%. Diluted shares outstanding for the quarters ended June 30, 2010 and 2009 were 22,832,785 and 22,735,770, respectively. The increase in shares outstanding is primarily due to the exercise of stock options by employees of the Company.

The backlog of orders at June 30, 2010 was $139,692,000 compared to $133,584,000 at June 30, 2009, an increase of $6,108,000, or 4.6%. The increase in backlog is due to an increase in international backlogs of $10,251,000 or 14.3% offset by a decrease in domestic backlogs of $4,143,000 or 6.7%. The increase in backlogs was also due primarily to an increase in the backlog of the Asphalt Group of $12,019,000 or 22.2% and the Mobile Asphalt Paving Group of $9,303,000 or 493.3%, offset by a decrease in the backlog of the Aggregate and Mining Group of $17,121,000 or 26.0%. The Company is unable to determine whether the changes in backlogs were experienced by the industry as a whole; however, the Company believes the changes in backlogs reflect the current economic conditions the industry is experiencing.

Read the The complete Report

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