Astec Industries, Inc. (ASTE) reported results for their fourth quarter and year ended December 31, 2017.
Net sales for the fourth quarter of 2017 were $312.4 million compared to $326.6 million for the fourth quarter of 2016, a 4.3% decrease. Domestic sales decreased 7.4% to $245.4 million for the fourth quarter of 2017 from $265.0 million for the fourth quarter of 2016. International sales were $67.0 million for the fourth quarter of 2017 compared to $61.6 million for the fourth quarter of 2016, an increase of 8.7%.
Earnings for the fourth quarter of 2017 were $10.9 million, or $0.47 per share, including an income tax benefit from U.S. Tax Reform legislation of $1.1 million, compared to $12.4 million, or $0.53 per diluted share, for the fourth quarter of 2016, a decrease of 11.3% per diluted share.
Net sales for 2017 were $1.185 billion compared to $1.147 billion for 2016, a 3.3% increase. Domestic sales decreased 1.0% to $932.3 million for 2017 from $941.3 million for 2016. International sales were $252.4 million for 2017 compared to $206.2 million for 2016, an increase of 22.5%.
Earnings for 2017 were $37.8 million, or $1.63 per diluted share, compared to $55.2 million, or $2.38 per diluted share, for 2016, a decrease of 31.5% per diluted share. As previously announced, the Company initiated significant design upgrades to its customers’ Georgia and Arkansas wood pellet plants to meet full production rates, which negatively impacted earnings per share by approximately $0.59 during the third quarter of 2017.
Commenting on the announcement, Benjamin G. Brock, Chief Executive Officer, stated, “We were pleased to exceed our previously announced earnings projection for the quarter while increasing our backlog to a historically strong $411.5 million. Given our backlog, quote activity and conversations with our customers in both domestic and international markets we are optimistic on our outlook. Our customers are experiencing good market conditions and we are excited for the opportunity to have improved results in 2018.”
