Continuing to navigate softer market conditions, Astec reported flat sales for the third quarter.
The owner of Carlson Paving and Roadtec reported revenues dropping 0.3 percent from the three months ending September 30 compared to the same period last year. Net sales were $255.8 million compared to $256.6 million.
The bulk of the revenue drop was in the company’s aggregates and mining group, down 2.1 percent. The infrastructure group saw an increase of 1.3 percent in revenue, and the energy group’s revenues rose 0.2 percent.
The company says its gross margin dropped 20.3 percent due to softer market conditions. Earnings per share dropped from $0.30 to $0.13, a 57 percent decline.
“Our results for the quarter highlight our ability to navigate effectively through a challenging environment,” says Barry Ruffalo, who became CEO in August. “Despite margin compression due to softer market conditions, I am confident we are taking the steps necessary to align production with demand and position ourselves for profitable growth over the long-term.”
Ruffalo said the company is developing a new strategy for growth called “Simplify, Focus and Grow,” about which he would reveal more later.
Astec’s backlog dropped 21 percent. “We are actively aligning the business to meet the current demand,” Ruffalo said of the backlog. “The implementation of our Sales and Operations Planning process will help us navigate changing markets and our international strategy will expand our opportunities to accelerate revenue growth.”