CHATTANOOGA , Tenn., Feb. 27 /PRNewswire-FirstCall/ -- Astec Industries, Inc. (Nasdaq: ASTE) today reported results for the fourth quarter and for the year ended December 31, 2006 . Revenues for 2006 were $710.6 million and net income for 2006 was $39.6 million, each of which is an historical high for the Company. Net income was $1.81 per diluted share for 2006 compared to $1.34per diluted share for 2005, for an increase of $0.47, or 35.1% per diluted share.

Revenues for 2006 were $710.6 million compared with $616.1 million for2005, for an increase of 15.3%. Domestic sales were $518.5 million for 2006,or 73.0% of 2006 revenues, compared to domestic sales of $499.8 million for2005, or 81.1% of 2005 revenues. International sales were $192.1 million for2006, a 65.3% increase over 2005, or 27.0% of 2006 revenues, compared to international sales of $116.2 million for 2005, or 18.9% of 2005 revenues. Gross margins for 2006 compared to 2005 increased 210 basis points. The Company reported net income of $39.6 million, or $1.81 per diluted share, for2006 compared with a net income of $28.1 million, or $1.34 per diluted share for 2005, resulting in a 35.1% increase in diluted earnings per share.

Excluding the unusual items in 2005 (gain on the sale of the Grapevine real estate, impairment charges, and charge-off of prepaid loan fees, as exhibited and reconciled on the attached schedule), income from operations has increased from $40.3 million in 2005 to $60.3 million in 2006, for a 49.8%increase.

Revenues for the fourth quarter of 2006 were $162.2 million compared with$134.5 million for the fourth quarter of 2005, for an increase of 20.6%.Domestic sales were $113.6 million for the fourth quarter of 2006, or 70.0% of2006 fourth quarter revenues, compared to domestic sales of $108.8 million for the fourth quarter of 2005, or 80.9% of 2005 fourth quarter revenues. International sales were $48.6 million for the fourth quarter of 2006, or30.0% of 2006 fourth quarter revenues, compared to international sales of$25.7 million for the fourth quarter of 2005, or 19.1% of 2005 fourth quarter revenues. The Company reported net income of $6.3 million, or $0.29 per diluted share, for the fourth quarter of 2006 compared with net income of $1.0million, or $0.05 per diluted share, for the fourth quarter of 2005, resulting in a 480.0% increase in diluted earnings per share. The Company's previous historical high for fourth quarter earnings was also $0.29 per diluted share in 1998.

Consolidated financial statements for the fourth quarter and year ended December 31, 2006 and additional information related to segment revenues and profits are attached as addenda to this press release.