New untimely buy today on the earnings miss.
Astec Industries, Inc. (ASTE) It's been on the watch list for some time. The Highway bill passed, but spending is being deferred. Might also be good news in that the Martin Marietta/Vulcan merger didn't go through.
Key snip from PR
>The Company's domestic backlog increased 8%, from $107.9 million at September 30, 2011 to $116.1 million at September 30, 2012. The international backlog at September 30, 2012 was $124.4 million, a slight increase compared to the September 30, 2011 international backlog of $124.2 million. Total backlog increased 4% to $240.5 million at September 30, 2012 from $232.1 million September 30, 2011, respectively. 2011 backlog amounts have been restated to reflect acquisitions made late in 2011.
Consolidated financial information for the quarter and nine months ended September 30, 2012 and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "While we were able to grow sales at 6% for the third quarter, our gross margin remained flat. Our pre-tax earnings were up 9% during the quarter but our after-tax earnings were impacted by the lack of a research and development credit which was in effect in 2011 but has yet to be approved by Congress for 2012."
Dr. Brock continued, "Our customers continue to be reluctant to spend money on capital investments due to the lack of work and uncertainty in the economy. The delayed passage of the Federal highway bill caused state transportation departments to delay lettings until late in the construction season. In addition, the uncertainty surrounding taxes, regulations and the lack of general economic improvement continues to discourage customers from upgrading and expanding their equipment fleets. We see an opportunity for growth as the economy rebounds over the next few years and the pent up demand for equipment needs to be met."
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