Sales in the first quarter were $284.4 million for Astec Industries, down 1.5 percent from the $288.8 million reported in the first quarter of 2020. Domestic sales decreased 3.5 percent mainly due to a used inventory reduction initiative in 2020. International sales were up 6.9 percent.
“The sale of new equipment and parts were up slightly for the quarter, however those increases were offset by a year-over-year decline in used equipment sales,” said CEO Barry Ruffalo in a prepared statement. “In the prior year, we executed our plan to reduce used inventory. During the fourth quarter of 2020 we began the process of moving the manufacturing of our Mequon site products to other Astec sites. This temporarily impacted our ability to get some products and parts through our facilities.
“We appear to be in the early stages of a positive economic cycle supported by investment in global infrastructure,” he stated. “Many of our customers have projects on their books for the rest of 2021 and some into 2022. As a result, we are pleased with the significant increase in our backlog.”
Backlog of $420.8 million is up 72 percent compared to last year ago, with the domestic backlog up 75 percent to $322.9 million.
Operating profit was $9.8 million in 1Q 2021, down 35 percent compared to $15.1 million in 1Q 2020. The company cited lower than normal margins on international sales, primarily due to logistics costs, and said it is working to build its global supply chain.
Net income of $8.7 million decreased 58 percent compared to the prior year quarter, while adjusted net income of $9.3 million also decreased 58 percent compared to the prior year period.
In January 2021, Astec announced plans to close its Tacoma facility in order to simplify and consolidate operations. Manufacturing and marketing of Tacoma product lines are expected to be transferred to other Astec facilities in late 2021.
The company reported “only minor interruptions to our supply chain,” and said it is ready to take proactive actions as needed to mitigate any potential disruptions. It cited rising steel prices and expects that to continue through the year.
Source: Astec Industries