Yet another warning due to "higher fuesl costs"...in this case it's believable, as these guys lay asphalt:
biz.yahoo.com
Tuesday September 19, 11:30 am Eastern Time
Press Release
SOURCE: Astec Industries, Inc.
Astec Industries, Inc. Predicts Lower Than Expected
Sales And Earnings For the Remainder of 2000
Customers Slowing Purchases Because of Increasing Fuel and Liquid Asphalt Prices and Elevated Short-term Interest Rates
CHATTANOOGA, Tenn., Sept. 19 /PRNewswire/ --
Astec Industries, Inc. (Nasdaq: ASTE - news) today announced that it has experienced a significant slowdown in confirmed
customer orders due to deteriorating market conditions that are reducing customers' profits. These recent and unexpected
unfavorable market conditions, coupled with the normal seasonal slowdown expected during the fourth quarter of each year, will most likely result in sales and earnings during the remainder of 2000 that are well below expectations.
The Company expects sales during the third and fourth quarters of 2000 to be approximately the same as those reported during the same period in 1999. Earnings per share for the third and fourth quarters combined are expected to total in the range of $0.45 to $0.55 per fully diluted share and for the full year in the range of $1.53 to $1.63 per fully diluted share as compared to $1.59 per fully diluted share for the fiscal year ended December 31, 1999.
Dr. J. Don Brock, Chairman and Chief Executive Officer, said, ``Over the past several weeks rising gasoline, diesel fuel and liquid asphalt prices have significantly increased the operating costs and reduced the profits of our contractor customers. These economic conditions, coupled with short-term interest rates that continue to be somewhat elevated, have caused many of our customers to delay purchases of new equipment until they are in a position to make provisions for the higher operating costs in future contracts with their customers. We expect this situation to continue into the fourth quarter of 2000 and to result in
intensified pricing competition which we think will further contribute to depressed sales and earnings for the remainder of this year.''
Dr. Brock continued, ``The long-term prospects for the growth of our Company continue to be excellent and we expect to see gradual strengthening in our markets as the short-term economic conditions which we have identified improve.''
Astec Industries, Inc., based in Chattanooga, Tennessee, is a manufacturer of asphalt mixing plants; asphalt paving equipment; analyzing and recycling equipment; heat transfer equipment; aggregate processing equipment; excavating and trenching equipment; and underground directional drilling equipment.
Given that their revenues are so tightly linked to oil, might not some hedging have been prudent when crude was $10? Just a thought.... |
