Astec Industries last week reported results for the fourth quarter and for the year ended Dec. 31, 2007. Revenues for 2007 were $869 million compared with $711 million for 2006, for an increase of 22 percent. Domestic sales were $591 million for 2007, or 68 percent of 2007 revenues, compared to domestic sales of $518 million for 2006, or 73 percent of 2006 revenues. International sales were $278 million for 2007, a 45-percent increase over 2006, or 32 percent of 2007 revenues, compared to international sales of $192 million for 2006, or 27 percent of 2006 revenues. Gross margins for 2007 compared to 2006 increased 40 basis points. The company reported net income of $57 million, or $2.53 per diluted share, for 2007 compared with a net income of $40 million, or $1.81 per diluted share for 2006, resulting in a 40-percent increase in diluted earnings per share.
Income from operations increased 44 percent from $60 million in 2006 to $87 million in 2007.
Revenues for the fourth quarter of 2007 were $221 million compared with $162 million for the fourth quarter of 2006, for an increase of 36 percent. Domestic sales were $136 million for the fourth quarter of 2007, or 62 percent of 2007 fourth-quarter revenues, compared to domestic sales of $114 million for the fourth quarter of 2006, or 70 percent of 2006 fourth-quarter revenues. International sales were $85 million for the fourth quarter of 2007, or 38 percent of 2007 fourth-quarter revenues, compared to international sales of $49 million for the fourth quarter of 2006, or 30 percent of 2006 fourth-quarter revenues. The company reported net income of $11 million, or $0.50 per diluted share, for the fourth quarter of 2007 compared with net income of $6 million, or $0.29 per diluted share, for the fourth quarter of 2006, resulting in a 72-percent increase in diluted earnings per share. The company’s previous historical high for fourth-quarter earnings was $0.29 per diluted share in 1998 and 2006.
“We are beginning the year with a strong backlog indicative of what we believe will be improved sales in the first six months of 2008,” said Dr. J. Don Brock, chairman and CEO. “Our efforts to increase international sales will continue this year. We expect to achieve 15-percent growth in net sales in 2008. Based on our outlook at this time, we expect net sales to be approximately $1 billion in 2008 and diluted earnings per share to be in the range of $2.80 to $2.95.”
Chattanooga, Tenn.-based Astec Industries is a manufacturer of specialized equipment for building and restoring infrastructure. Astec’s manufacturing operations are divided into four business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.
