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Mar 31, 2021
Astec Q1 2021 Earnings Report
Astec's financial performance decreased in Q1 2021 compared to the previous year, with a slight decrease in net sales and a significant drop in net income.
Key Takeaways
Astec Industries reported a decrease in net sales and net income for the first quarter of 2021. Net sales decreased by 1.5% to $284.4 million, while net income decreased by 57.8% to $8.7 million. The company's backlog increased significantly, indicating strong future demand.
Net sales decreased by 1.5% to $284.4 million.
Net income decreased by 57.8% to $8.7 million.
Backlog increased by 71.5% to $420.8 million.
Diluted EPS decreased to $0.38 compared to $0.91 in the prior year.
Revenue by Segment
Forward Guidance
Astec anticipates a positive economic cycle supported by global infrastructure investments and is managing supply chain disruptions and steel price increases.
Positive Outlook
- Customers have projects on their books for the rest of 2021 and some into 2022.
- Astec is in the early stages of a positive economic cycle supported by investment in global infrastructure.
- Federal funding influences customer purchasing decisions.
- Astec took proactive actions to mitigate any potential supply chain disruptions
- The company continues to position its business to adjust to evolving market dynamics, while continuing to execute its transformation strategy.
Challenges Ahead
- Unfavorable product mix in Infrastructure Solutions and under absorption in Materials Solutions.
- Unfavorable product mix was driven by certain international product sales with lower than normal margins as compared to domestic sales, primarily due to logistics costs.
- The under absorption was primarily related to the movement of production from our Mequon site to other Astec sites.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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