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Analysts: Astec well-positioned

By: Amy Williams
(Contact)

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J. Don Brock

As Chattanooga-based Astec Industries enters the second half of 2009, analysts say the maker of road-building equipment is well-positioned.

Astec President and Chief Executive Officer J. Don Brock said the federal Recovery Act passed earlier this year would help his company at a time when business is slow for his industry.

“It will certainly help our business, and more importantly help our customers’ business,” Dr. Brock said. “It will help us do as well as we did last year or the year before.”

The company’s first-quarter earnings were better than analysts had expected with net income of $7.4 million or or 33 cents a share, in the quarter, compared to $17.6 million, or 78 cents a share, during the same period in 2008.

“This is probably the first time in my career that I have been somewhat happy with the results of the quarter when they’re down 58 percent from the previous year,” Dr. Brock said. “However, when you consider the severity and the depth of the downturn, we’re pleased to still remain profitable while a lot of other companies have not been able to do that.”

Astec’s business both domestically and internationally could stand to benefit in the second half of the year from stimulus packages in the United States and abroad designed to encourage road projects.

With stimulus packages in 29 countries outside the U.S., many of which are places where Astec does business, the rest of the year could get increasingly better for the company, said analyst Bentley Offutt of Offutt Securities.

Mr. Offutt said the chief executive’s positive outlook and thought an upbeat attitude was well deserved.

“I feel that the company is well-positioned to move forward,” Mr. Offutt said.

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