Astec Industries, Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $291.4 million, a decrease of 3.9% from $303.1 million in Q3 2023. For the nine months, net sales totaled $946.1 million, down 5.5% from $1,001.0 million in the prior year. The decline in revenue was attributed to decreased sales in the Materials Solutions segment, which saw a significant drop in domestic sales.
Gross profit for Q3 2024 was $66.8 million, a 4.0% decrease from $69.6 million in Q3 2023. The loss from operations increased to $(7.2) million from $(5.2) million year-over-year. The net loss attributable to Astec for Q3 2024 was $(6.2) million, slightly improved from $(6.5) million in Q3 2023. For the nine-month period, the net loss was $(16.9) million, a stark contrast to a net income of $18.8 million in the same period of 2023, primarily due to a $20.2 million goodwill impairment charge recognized in Q2 2024.
The company’s total current assets increased to $740.1 million as of September 30, 2024, from $719.5 million at the end of 2023. However, cash and cash equivalents decreased to $55.3 million from $63.2 million. Long-term debt rose significantly to $99.0 million, up from $72.0 million, contributing to an increase in total liabilities from $405.6 million to $435.7 million. Shareholders' equity also declined to $631.4 million from $653.4 million.
Strategically, Astec has undergone restructuring, with charges amounting to $8.4 million in Q3 2024, compared to only $0.1 million in the same quarter of 2023. The company has also restructured its reportable segments, moving certain operations to better align with market demands. The backlog of orders decreased by 22.6% to $475.9 million, reflecting challenges in the construction industry, including high interest rates and geopolitical tensions affecting customer spending.
The company continues to invest in a multi-year global ERP implementation, with total costs expected to reach between $180 million and $200 million by completion in 2027. Despite these challenges, Astec remains focused on improving operational efficiencies and adapting to market conditions.
About ASTEC INDUSTRIES INC
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