Astec Industries, parent company of Roadtec and Carlson Paving, attributed disappointing first-quarter financial results to hazardous weather that slammed large sections of the country in March.
Floods, ice storms and heavy snow not only led to a 2.7 percent drop in domestic sales for the quarter over 1Q 2018, but also meant lost time in production at some of the company’s manufacturing plants that had to close for several days, according to company officials.
“March is typically a strong month, but that was not the case this year,” said Steve Anderson, vice president of investor relations, during a conference call with analysists April 23rd. “Unusually harsh weather has been a factor in the United States. A lot of the equipment that we manufacture is used in the field and can’t operate in excessively muddy conditions.”
Astec’s other subsidiaries include Telsmith and Kolberg Pioneer in its Aggregates and Mining Group, and Heatec and CEI Enterprises in its Energy Group.
The company had previously projected 3 to 6 percent growth for the quarter, Chief Financial Officer David Silvious said.
Going forward, Silvious cautioned that second-quarter revenues would likely drop 5 to 15 percent, and the company would post flat to 3 percent growth for the full year.
