UPDATE 2-Astec Industries shares fall on domestic sales worries

* Q3 EPS $0.32 vs est $0.24

* Q3 rev $177.9 mln vs est $185.1 mln

* Shares fall 6 percent
(Recasts; adds details, background, share movement)

Oct 19 (BestGrowthStock) – Road construction equipment maker Astec
Industries Inc (ASTE.O: ) said weakness in its domestic sales
could continue for another 12-24 months if the new Highway Bill
is not passed, sending its shares down 6 percent.

Fewer states are putting out projects to bid as a $286
billion highway bill — one of the richest and most popular
legislative undertakings for states — is on hold.

In the latest third quarter, Astec’s domestic sales fell 3
percent to $98.6 million, but profit came in ahead of market
expectations on higher margins.

International sales rose 22 percent to $79.3 million.

To sustain and grow revenue during these uncertain times,
Astec is increasing sales, service and parts personnel
throughout the world, the company said.

Net income for the third quarter more than doubled to $7.4
million, helped in part by the downsizing Astec did in 2009.

Revenue at the company, which makes equipment for asphalt
road building, pipeline and utility trenching, rose 7 percent
to $177.9 million.

Gross profit margin for the quarter was 23.6 percent
compared with 20.9 percent a year ago.

Analysts on average had expected earnings of 24 cents a
share, before special items, on revenue of $185.1 million,
according to Thomson Reuters I/B/E/S.

Shares of the Chattanooga, Tennesse-based company were
trading down 4 percent at $30.26 on Nasdaq. Excluding Tuesday’s
trade, they have gained 16 percent in value in less than a
month.
(Reporting by Divya Sharma in Bangalore; Editing by Jarshad
Kakkrakandy)

UPDATE 2-Astec Industries shares fall on domestic sales worries