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Dec 31, 2021
Astec Q4 2021 Earnings Report
Astec's Q4 2021 results were announced, revealing a sales increase but a decrease in profitability due to supply chain issues and increased costs.
Key Takeaways
Astec Industries reported a 12.1% increase in net sales to $267.8 million for Q4 2021; however, the company experienced a net loss of $9.2 million, a significant decrease from the previous year's net income of $15.4 million, primarily due to supply chain disruptions, labor restrictions, and increased SG&A costs.
Net sales increased by 12.1% reaching $267.8 million.
The company experienced a net loss of $9.2 million, a 159.7% decrease.
Diluted EPS was $(0.40), a decrease compared to $0.67 in the prior year.
Record backlog of $762.6 million was achieved.
Revenue by Segment
Forward Guidance
Astec anticipates that supply chain, logistic, labor, and net inflation headwinds, along with the resurgence of COVID-19, will continue to negatively impact gross profit margin in early 2022.
Positive Outlook
- Strong demand for products continued, with a record backlog of $762.6 million as of December 31, 2021.
- The Infrastructure Investment & Jobs Act provides a long-term tailwind for the business, allocating $548 billion for new infrastructure over five years.
- Progress was made on ESG initiatives, including a partnership with CarbonCure.
- Astec rebranding initiative was launched, simplifying how to do business with the Company.
- Attraction of additional workforce talent that will support capacity growth in 2022.
Challenges Ahead
- Supply chain disruptions and logistics challenges are expected to persist in early 2022.
- Labor shortages in certain manufacturing locations continue to impact operational efficiency.
- Steel prices are expected to continue increasing into 2022 before normalized price inflation returns.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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