Business
Astec Reports Third Quarter 2020 Results
Third Quarter 2020 Highlights (all comparisons are made to the prior year third quarter): Net Sales decreased 9.5% to $231.4MGross Profit Margin of 21.8%
About this update from Astec Industries, Inc.
[{"type":"text","content":"Third Quarter 2020 Highlights (all comparisons are made to the prior year third quarter):\n Net Sales decreased 9.5% to $231.4MGross Profit Margin of 21.8% increased 150 bps; adjusted Gross Profit Margin increased 260 bpsNet Income decreased 45.2% to $1.6M; adjusted Net Income of $4.6M increased 21.7% from $3.8MEPS of $0.07 compared to $0.13; adjusted EPS of $0.20 increased from $0.17 CHATTANOOGA, Tenn., Nov. 04, 2020 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for third quarter 2020 ending September 30, 2020. Third quarter of 2020 net sales of $231.4 million decreased 9.5% compared to $255.8 million for the third quarter of 2019. Domestic sales decreased $8.5 million or 4.5% and international sales decreased $15.9 million or 24.1% due mainly to COVID-19 related business disruptions in the third quarter versus last year. Excluding the impact of foreign currency, net sales decreased 8.5%. Backlog as of September 30, 2020 of $218.5 million decreased $25.4 million, or 10.4% compared to the backlog of $243.9 million a year ago driven by lower Materials and Infrastructure Solutions orders, which were down 8.5% and 11.3%, respectively. Domestic backlog decreased by 4.3% to $151.3 million while international backlog decreased by 21.8% to $67.2 million. Lower orders were driven by COVID-19 uncertainties. Operating loss of $0.8 million in the third quarter of 2020 decreased 124.2% compared to operating income of $3.3 million in the third quarter 2019. In relation to the company’s efforts to simplify the organization, the company incurred a $3.9 million pre-tax restructuring and other or $0.13 per share net of taxes related to asset impairment, inventory write-down, reduction in labor force and the closing of our Mequon, Wisconsin and Enid, Oklahoma facilities. Third quarter of 2020 adjusted operating income of $4.1 million, decreased 2.3% compared to $4.2 million a year ago. Adjusted operating margin of 1.8% increased 20 basis points from 1.6% in third quarter 2019 as operational efficiencies outpaced a decline in sales. SG&A expenses increased $1.2 million or 2.5% primarily due to the acquisitions of BMH Systems (\"St. Bruno\") and CON-E-CO (\"Blair\"). Net income of $1.6 million decreased 45.2% compared to $3.0 million a year ago, while EPS of $0.07 decreased 46.2% compared to $0.13 f...