ex99-1.htm

Exhibit 99.1

Astec Industries, Inc.

News Release

1725 Shepherd Road | Chattanooga, TN 37421 | Phone (423) 899-5898 | Fax (423) 899-4456

ASTEC INDUSTRIES REPORTS THIRD QUARTER RESULTS

CHATTANOOGA, Tenn. (October 20, 2009) - Astec Industries, Inc. (Nasdaq: ASTE) today reported results for its third quarter ended September 30, 2009.

Revenues for the third quarter of 2009 were $166.1 million compared with $237.4 million for the third quarter of 2008 for a 30.0% decrease. Domestic sales were $101.3 million during the third quarter of 2009 compared to $135.3 million during the third quarter of 2008. International sales were $64.8 million during the third quarter of 2009 compared to $102.1 million during the third quarter of 2008. The Company reported net income attributable to controlling interest of $3.3 million for the third quarter of 2009 compared to net income attributable to controlling interest of $16.0 million for the third quarter of 2008 for a decrease of 79.4%. Net income attributable to controlling interest for the third quarter of 2009 was $0.15 per diluted share compared to $0.71 per diluted share for the third quarter of 2008 for a 78.9% decrease.

The Company’s backlog at September 30, 2009 was $144.3 million compared to $261.9 million at September 30, 2008 for a 44.9% decrease.

Consolidated financial statements for the third quarter ended September 30, 2009 and additional information related to segment revenues, profits, and backlog are attached to this press release.

Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, “We are disappointed with our third quarter results. We experienced a continued downturn in total revenues during the third quarter. The downturn, however, is not consistent across our segments. For example, the Mobile Asphalt Paving Group third quarter revenues are up 31.5% compared to the third quarter of last year, but the Underground is down 58.1%. With these differences, we have attempted to rightsize each subsidiary and are generally pleased with the gross margins of most segments. S,G,&A expenses have been reduced, but, given the soft sales, S,G,&A is still a higher percentage of sales than our goal. We continue to aggressively develop new products with resulting higher R&D expenses.”

“The failure of Congress to renew the Highway Bill creates uncertainty about future funding impacting capital equipment purchasing behavior. Additionally, continued softness in the residential and commercial real estate markets is resulting in the under utilization of customer equipment and less need for additional or replacement equipment. The stimulus packages passed earlier in the year are clearly helping the Mobile Asphalt Paving Group and other segments, but are not enough to counter the continuing economic downturn and the uncertainty around the Highway Bill. Until Congress settles on a new Highway Bill, we expect to see little improvement in domestic sales during the fourth quarter of 2009 and next year.”

“International sales declined in total dollars and as a percentage of total sales. Nonetheless, more than 50% of our September 30 backlog is international orders. Approximately 25 foreign countries have instituted stimulus packages and the weak U.S. dollar should favorably impact international sales.”

Dr. Brock continued, “Visibility in the market and trends is very limited. The fourth quarter is normally our least profitable quarter of the year. We will manage the company for the long-term and control costs. We have no debt and $36 million of cash and cash equivalents, and will continue to manage our assets. Our strong balance sheet gives us the opportunity to develop new products and to consider acquisitions as they become available.”

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on October 20, 2009, at 10:00 A.M. Eastern Time to review its third quarter results as well as current business conditions. The number to call for this interactive teleconference is (877) 407-9210. International callers should dial (201) 689-8049. Please reference Astec Industries.

The company will also provide an online Web simulcast and rebroadcast of the conference call. The live broadcast of Astec’s conference call will be available online at the Company’s website: www.astecindustries.com/conferencecalls. An archived webcast will be available for 90 days at www.astecindustries.com.

A replay of the conference call will be available through midnight on Tuesday, November 3, 2009, by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 335140. A transcription of the conference call will be made available under the Investor Relation section of the Astec Industries, Inc. website within 5 days after the call.

Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world’s infrastructure. Astec’s manufacturing operations are divided into four business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment. Astec also has a company engaged in the wood chipping and grinding industry.

The information contained in this press release contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about the Company’s financial performance for 2009, the ability to control costs and maintain or improve margins, the state of the U.S. economy, the effect of a renewed Highway Bill, increases in demand for certain products, the effect of domestic and international stimulus packages, the continued strength or weakness of various business units, and international sales. These forward-looking statements reflect management’s expectations and are based upon currently available information, and the Company undertakes no obligation to update or revise such statements. These statements are not guarantees of performance and are inherently subject to risks and uncertainties, many of which cannot be predicted or anticipated. Future events and actual results, financial or otherwise, could differ materially from those expressed in or implied by the forward-looking statements. Important factors that could cause future events or actual results to differ materially include: general uncertainty in the economy, downturns in the general economy or the commercial construction industry, the cyclical nature of the commercial, construction industry and the customization of the equipment the Company sells, increases in the price of oil or decreases in the availability of oil, increases in the price of raw materials, a failure to comply with covenants in the Company’s credit agreement, contingent liability for certain customer debt, rising interest rates, rising steel and steel component pricing, delayed or decreased funding for highway construction and maintenance, increased government regulation, managing and expanding in international markets, the timing of large contracts, the costs of introducing new equipment systems, the Company’s production capacity, demand for the Company’s products, seasonality of sales volumes, competitive activity and those other factors listed from time to time in the Company’s reports filed with the Securities and Exchange Commission, including but not limited to the Company’s annual report on Form 10-K for the year ended December 31, 2008.

For Additional Information Contact:

J. Don Brock

Chairman of the Board & C.E.O.

Phone: (423) 867-4210

Fax: (423) 867-4127

E-mail: dbrock@astecindustries.com

F. McKamy Hall

Vice President and Chief Financial Officer

Phone: (423) 899-5898

Fax: (423) 899-4456

E-mail: mhall@astecindustries.com

Stephen C. Anderson

Secretary / Director of Investor Relations

Phone: (423) 899-5898

Fax: (423) 899-4456

E-mail: sanderson@astecindustries.com

Astec Industries, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

	Sept 30		Sept 30
	2009		2008
Assets
Current assets
Cash and cash equivalents	$	36,149	$	28,839
Receivables, net		65,033		93,912
Inventories		263,705		249,378
Prepaid expenses and other		22,067		17,158
Total current assets		386,954		389,287
Property and equipment, net		169,559		147,822
Other assets		49,901		68,368
Total assets	$	606,414	$	605,477
Liabilities and equity
Current liabilities
Accounts payable - trade	$	36,444	$	55,115
Other accrued liabilities		75,823		88,131
Total current liabilities		112,267		143,246
Other non-current liabilities		28,387		25,405
Total equity		465,760		436,826
Total liabilities and equity	$	606,414	$	605,477

Astec Industries, Inc.

Consolidated Statements of Operations

(In thousands)

(Unaudited)


	Three Months Ended				Nine Months Ended
	Sept 30				Sept 30
	2009		2008		2009		2008
Net sales	$	166,084	$	237,443	$	560,231	$	778,218
Cost of sales		131,367		178,640		439,264		586,906
Gross profit		34,717		58,803		120,967		191,312
Selling, general, administrative & engineering expenses		30,433		34,269		93,466		106,638
Income from operations		4,284		24,534		27,501		84,674
Interest expense		66		276		418		528
Other income, net of expenses		471		260		1,614		1,099
Income before income taxes		4,689		24,518		28,697		85,245
Income taxes		1,320		8,512		10,157		30,593
Net income		3,369		16,006		18,540		54,652
Net income attributable to noncontolling interest		25		44		16		99
Net income attributable to controlling interest	$	3,344	$	15,962	$	18,524	$	54,553


Earnings per Common Share
Net income attributable to controlling interest
Basic	$	0.15	$	0.72	$	0.83	$	2.45
Diluted	$	0.15	$	0.71	$	0.82	$	2.41


Weighted average common shares outstanding
Basic		22,453,073		22,289,973		22,439,635		22,270,121
Diluted		22,735,064		22,600,978		22,711,526		22,595,174

Astec Industries, Inc.

Segment Revenues and Profits

For the three months ended September 30, 2009 and 2008

(in thousands)

(Unaudited)

	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground Group			All Others			Total
2009 Revenues		44,556			55,865			36,814			16,939			11,910			166,084
2008 Revenues		56,658			90,268			27,993			40,443			22,081			237,443
Change $		(12,102	)		(34,403	)		8,821			(23,504	)		(10,171	)		(71,359	)
Change %		(21.4	%)		(38.1	%)		31.5	%		(58.1	%)		(46.1	%)		(30.1	%)

2009 Gross Profit		10,769			12,691			9,148			784			1,325			34,717
2009 Gross Profit %		24.2	%		22.7	%		24.8	%		4.6	%		11.1	%		20.9	%
2008 Gross Profit		17,045			20,402			6,547			11,318			3,491			58,803
2008 Gross Profit %		30.1	%		22.6	%		23.4	%		28.0	%		15.8	%		24.8	%
Change		(6,276	)		(7,711	)		2,601			(10,534	)		(2,166	)		(24,086	)

2009 Profit (Loss)		4,045			2,811			4,281			(3,007	)		(4,505	)		3,625
2008 Profit (Loss)		10,675			10,773			1,465			6,583			(11,948	)		17,548
Change $		(6,630	)		(7,962	)		2,816			(9,590	)		7,443			(13,923	)
Change %		(62.1	%)		(73.9	%)		192.2	%		(145.7	%)		62.3	%		(79.3	%)

Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on intersegment

revenues. A reconciliation of total segment profits to the Company's net income attributable to controlling interest
is as follows:

	For the three months ended September 30
	2009			2008
Total profit for all segments	$	3,625		$	17,548
Net income attributable to noncontrolling interest in subsidiary		(25	)		(44	)
Elimination of intersegment profit		(256	)		(1,542	)
Net income attributable to controlling interest	$	3,344		$	15,962

Astec Industries, Inc.

Segment Revenues and Profits

For the nine months ended September 30, 2009 and 2008

(in thousands)

(Unaudited)

	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground Group			All Others			Total
2009 Revenues		197,385			162,893			105,077			54,331			40,545			560,231
2008 Revenues		200,572			273,753			130,180			109,298			64,415			778,218
Change $		(3,187	)		(110,860	)		(25,103	)		(54,967	)		(23,870	)		(217,987	)
Change %		(1.6	%)		(40.5	%)		(19.3	%)		(50.3	%)		(37.1	%)		(28.0	%)

2009 Gross Profit		49,860			37,165			24,501			3,820			5,621			120,967
2009 Gross Profit %		25.3	%		22.8	%		23.3	%		7.0	%		13.9	%		21.6	%
2008 Gross Profit		54,652			66,087			32,696			26,728			11,149			191,312
2008 Gross Profit %		27.2	%		24.1	%		25.1	%		24.5	%		17.3	%		24.6	%
Change		(4,792	)		(28,922	)		(8,195	)		(22,908	)		(5,528	)		(70,345	)

2009 Profit (Loss)		27,325			8,532			10,632			(9,589	)		(18,320	)		18,580
2008 Profit (Loss)		33,964			32,942			16,030			11,972			(38,724	)		56,184
Change $		(6,639	)		(24,410	)		(5,398	)		(21,561	)		20,404			(37,604	)
Change %		(19.5	%)		(74.1	%)		(33.7	%)		(180.1	%)		52.7	%		(66.9	%)

Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on intersegment

revenues. A reconciliation of total segment profits to the Company's net income attributable to controlling interest
is as follows:

	For the nine months ended September 30
	2009			2008
Total profit for all segments	$	18,580		$	56,184
Net income attributable to noncontrolling interest in subsidiary		(16	)		(99	)
Elimination of intersegment profit		(40	)		(1,532	)
Net income attributable to controlling interest	$	18,524		$	54,553

Astec Industries, Inc.

Backlog by Segment

September 30, 2009 and 2008

(in thousands)

(Unaudited)

	Asphalt Group			Aggregate and Mining Group			Mobile Asphalt Paving Group			Underground Group			All Others			Total
2009 Backlog		76,328			54,693			4,346			2,947			5,968			144,282
2008 Backlog		130,688			104,364			974			14,841			10,988			261,855
Change $		(54,360	)		(49,671	)		3,372			(11,894	)		(5,020	)		(117,573	)
Change %		(41.6	%)		(47.6	%)		346.2	%		(80.1	%)		(45.7	%)		(44.9	%)