Business
Astec Industries Reports First Quarter 2020 Results
First Quarter 2020 Highlights (all comparisons are made to the prior year first quarter): Net Sales decreased 11.3% to $288.8MGross margin of 25.6 % increased
About this update from Astec Industries, Inc.
[{"type":"text","content":"First Quarter 2020 Highlights (all comparisons are made to the prior year first quarter):\n Net Sales decreased 11.3% to $288.8MGross margin of 25.6 % increased 200 bpsEPS of $0.91 compared to $0.63 a year ago; adjusted EPS of $1.00 increased 53.8%; $0.42 benefit to EPS attributed to the CARES Act Adjusted EBITDA of $24.3M decreased 4.7%; adjusted EBITDA margin of 8.4% increased 60 bpsSimplified operations into two business segments: Infrastructure Solutions and Materials Solutions CHATTANOOGA, Tenn., May 06, 2020 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for first quarter 2020 ending March 31, 2020. First quarter of 2020 net sales of $288.8 million decreased 11.3% compared to $325.8 million for the first quarter of 2019. Domestic sales of $233.9 million decreased 11.0% from $262.9 million a year ago, while international sales of $55.0 million decreased 12.7% from $63.0 million in the first quarter of 2019. The domestic sales decreased as dealers were slow to convert rentals to retail sales and the pace of restocking orders. International sales declined primarily as a result of the COVID-19-related softness, the wildfires in Australia and the temporary shutdown of our Johannesburg, South Africa and Omagh, Northern Ireland facilities nearing the end of March. Excluding the impact of foreign currency, net sales decreased 10.5%. Backlog as of March 31, 2020 of $245.4 million increased by $8.9 million, or 3.8% compared to the backlog of $236.5 million a year ago. An increase in the backlog of Infrastructure Solutions was partially offset by a decline in Materials Solutions. Domestic backlog increased by 14.4% to $185.2 million from $161.8 million in 2019. International backlog of $60.2 million decreased compared to $74.7 million last year. Operating income of $15.1 million in the first quarter of 2020 decreased 16.7% compared $18.2 million in the first quarter 2019. In relation to the company’s efforts to simplify the organization, the company incurred a $1.1 million pre-tax restructuring charge and a pre-tax goodwill impairment charge of $1.6 million. These restructuring items were related to the closing of our Albuquerque facility, employee severance payments and the transfer of CEI products to Chattanooga, Tennessee and Burlington, Wisconsin sites. The goodwill impairment char...