CHATTANOOGA, Tenn. - Astec Industries , Inc. (NASDAQ:ASTE), a manufacturer of equipment for asphalt road building, aggregate processing, and concrete production, announced Monday the appointment of Brian J. Harris as its new Chief Financial Officer, effective immediately.
Harris brings extensive experience from his previous role as Executive Vice President and Chief Financial Officer at Summit Materials, Inc. (NYSE:NYSE:SUM), which he held from October 2013 to February 2023. His career also includes a tenure as Executive Vice President and Chief Financial Officer of Bausch + Lomb Corporation from 2009 to 2013, and various positions at the Gates Corporation from 1996 to 2009.
Jaco van der Merwe, President and CEO of Astec, expressed confidence in Harris's abilities, stating that his "valuable combination of executive experience and long-time participation in our industry" will be instrumental in guiding the company's finance organization. Van der Merwe also extended gratitude to Heinrich Jonker, who served as Interim CFO, and will continue as Vice President Finance – Infrastructure Solutions.
Astec's operations are split into two primary segments: Infrastructure Solutions, which includes road building, asphalt and concrete plants, and thermal and storage solutions; and Materials Solutions, which encompasses aggregate processing equipment. The company also offers controls and automation products aimed at enhancing productivity through improved equipment performance.
This leadership transition comes as Astec continues to focus on its core manufacturing operations and strategic growth within the industry. The information is based on a press release statement from Astec Industries, Inc.
In other recent news, Astec Industries reported a solid second quarter during its earnings call, with net sales reaching a remarkable $345.5 million. The company's Infrastructure Solutions segment saw high demand, leading to a robust performance. Inventory management efforts resulted in a 5.9% reduction from the previous quarter, and the company maintained a stable backlog of $531.1 million. Despite facing challenges in parts sales and manufacturing efficiencies, Astec Industries projects flat or low single-digit growth in sales for the full year.
Astec Industries' Material Solutions segment also improved, with solid dealer quoting for future bookings and sales. The company undertook a restructuring program to improve manufacturing efficiencies. However, the company reported a decline in adjusted EBITDA and margin due to lower volumes and higher costs. Astec Industries expects a strong second half of the year, with backlogs for product delivery full for the second half of the year, extending into 2025 in some lines. These are some of the recent developments for the company.
InvestingPro Insights
As Astec Industries welcomes Brian J. Harris as its new CFO, investors might be keen to understand the company's current financial position. According to InvestingPro data, Astec's market capitalization stands at $706.13 million, reflecting its significant presence in the road building and construction equipment sector.
InvestingPro Tips reveal that Astec has maintained dividend payments for 13 consecutive years, demonstrating a commitment to shareholder returns even during challenging periods. This consistency aligns with the company's focus on long-term stability, which could be reassuring as it navigates through leadership changes.
The company's P/E ratio (adjusted) of 14.44 for the last twelve months as of Q2 2024 suggests a reasonable valuation compared to industry peers. This metric could be of interest to value investors assessing Astec's market position relative to its earnings potential.
It's worth noting that Astec operates with a moderate level of debt, as highlighted by another InvestingPro Tip. This financial prudence may provide the new CFO with flexibility in managing the company's finances and pursuing growth opportunities in the infrastructure and materials solutions segments.
While the stock has taken a significant hit over the last six months, with a total return of -29.78%, analysts predict that the company will be profitable this year. This optimistic outlook could be a factor in the company's decision to bring in experienced leadership like Harris to navigate the current market challenges and capitalize on potential growth in the construction equipment sector.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of Astec Industries' financial health and market position.
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