http://www.wsw.com/webcast/baird10/aste/

Astec Industries, Inc., (www.astecindustries.com), is a manufacturer of specialized equipment for building and restoring the world's infrastructure. Astec's manufacturing operations are divided into four primary business segments: asphalt production equipment, mobile asphalt paving equipment, aggregate processing and mining equipment, and underground boring, directional drilling and trenching equipment. Additionally, the Other Group contains one subsidiary that manufactures equipment used for wood processing and recycling and one that is a company-owned dealership located in Australia.

SOURCE Astec Industries, Inc.

http://www.astecindustries.com

Expected next investor conference call information:
Conference Call Date: 10/20/2009
Conference Call Time (ET): 10:00 AM
Conference Call URL: http://www.vcall.com/CoLocated.asp?ID=151003&source=wshorizon&urlID=150882&playerID=1

Expected next investor conference call information:
Conference Call Date: 10/20/2009
Conference Call Time (ET): 10:00 AM
Conference Call URL: http://www.vcall.com/CoLocated.asp?ID=151003&source=wshorizon&urlID=150882&playerID=1

The Company's backlog at September 30, 2009 was $144.3 million compared to $261.9 million at September 30, 2008 for a 44.9% decrease.

Consolidated financial statements for the third quarter ended September 30, 2009 and additional information related to segment revenues, profits, and backlog are attached to this press release.

Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "We are disappointed with our third quarter results. We experienced a continued downturn in total revenues during the third quarter. The downturn, however, is not consistent across our segments. For example, the Mobile Asphalt Paving Group third quarter revenues are up 31.5% compared to the third quarter of last year, but the Underground is down 58.1%. With these differences, we have attempted to rightsize each subsidiary and are generally pleased with the gross margins of most segments. S,G,&A expenses have been reduced, but, given the soft sales, S,G,&A is still a higher percentage of sales than our goal. We continue to aggressively develop new products with resulting higher R&D expenses."

"The failure of Congress to renew the Highway Bill creates uncertainty about future funding impacting capital equipment purchasing behavior. Additionally, continued softness in the residential and commercial real estate markets is resulting in the under utilization of customer equipment and less need for additional or replacement equipment. The stimulus packages passed earlier in the year are clearly helping the Mobile Asphalt Paving Group and other segments, but are not enough to counter the continuing economic downturn and the uncertainty around the Highway Bill. Until Congress settles on a new Highway Bill, we expect to see little improvement in domestic sales during the fourth quarter of 2009 and next year."

"International sales declined in total dollars and as a percentage of total sales. Nonetheless, more than 50% of our September 30 backlog is international orders. Approximately 25 foreign countries have instituted stimulus packages and the weak U.S. dollar should favorably impact international sales."

Dr. Brock continued, "Visibility in the market and trends is very limited. The fourth quarter is normally our least profitable quarter of the year. We will manage the company for the long-term and control costs. We have no debt and $36 million of cash and cash equivalents, and will continue to manage our assets. Our strong balance sheet gives us the opportunity to develop new products and to consider acquisitions as they become available."

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on October 20, 2009, at 10:00 A.M. Eastern Time to review its third quarter results as well as current business conditions. The number to call for this interactive teleconference is (877) 407-9210. International callers should dial (201) 689-8049. Please reference Astec Industries.

The company will also provide an online Web simulcast and rebroadcast of the conference call. The live broadcast of Astec's conference call will be available online at the Company's website: www.astecindustries.com/conferencecalls. An archived webcast will be available for 90 days at www.astecindustries.com.

A replay of the conference call will be available through midnight on Tuesday, November 3, 2009, by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 335140. A transcription of the conference call will be made available under the Investor Relation section of the Astec Industries, Inc. website within 5 days after the call.

Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world's infrastructure. Astec's manufacturing operations are divided into four business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment. Astec also has a company engaged in the wood chipping and grinding industry.

The information contained in this press release contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about the Company's financial performance for 2009, the ability to control costs and maintain or improve margins, the state of the U.S. economy, the effect of a renewed Highway Bill, increases in demand for certain products, the effect of domestic and international stimulus packages, the continued strength or weakness of various business units, and international sales. These forward-looking statements reflect management's expectations and are based upon currently available information, and the Company undertakes no obligation to update or revise such statements. These statements are not guarantees of performance and are inherently subject to risks and uncertainties, many of which cannot be predicted or anticipated. Future events and actual results, financial or otherwise, could differ materially from those expressed in or implied by the forward-looking statements. Important factors that could cause future events or actual results to differ materially include: general uncertainty in the economy, downturns in the general economy or the commercial construction industry, the cyclical nature of the commercial, construction industry and the customization of the equipment the Company sells, increases in the price of oil or decreases in the availability of oil, increases in the price of raw materials, a failure to comply with covenants in the Company's credit agreement, contingent liability for certain customer debt, rising interest rates, rising steel and steel component pricing, delayed or decreased funding for highway construction and maintenance, increased government regulation, managing and expanding in international markets, the timing of large contracts, the costs of introducing new equipment systems, the Company's production capacity, demand for the Company's products, seasonality of sales volumes, competitive activity and those other factors listed from time to time in the Company's reports filed with the Securities and Exchange Commission, including but not limited to the Company's annual report on Form 10-K for the year ended December 31, 2008.

                               Astec Industries, Inc.
                             Consolidated Balance Sheets
                                   (In thousands)
                                     (Unaudited)

                                                         Sept 30  Sept 30
                                                           2009     2008
                                                           ----     ----
                 Assets
    Current assets
    Cash and cash equivalents                            $36,149  $28,839
    Receivables, net                                      65,033   93,912
    Inventories                                          263,705  249,378
    Prepaid expenses and other                            22,067   17,158
                                                          ------   ------
    Total current assets                                 386,954  389,287
    Property and equipment, net                          169,559  147,822
    Other assets                                          49,901   68,368
                                                          ------   ------
    Total assets                                        $606,414 $605,477
                                                        ======== ========
          Liabilities and equity
    Current liabilities
    Accounts payable - trade                             $36,444  $55,115
    Other accrued liabilities                             75,823   88,131
                                                          ------   ------
    Total current liabilities                            112,267  143,246
    Other non-current liabilities                         28,387   25,405
    Total equity                                         465,760  436,826
                                                         -------  -------
    Total liabilities and equity                        $606,414 $605,477
                                                        ======== ========



                              Astec Industries, Inc.
                      Consolidated Statements of Operations
                                  (In thousands)
                                   (Unaudited)

                                      Three Months Ended    Nine Months Ended
                                           Sept 30               Sept 30
                                       2009       2008       2009       2008
                                       ----       ----       ----       ----
    Net sales                       $166,084   $237,443   $560,231   $778,218
    Cost of sales                    131,367    178,640    439,264    586,906
                                     -------    -------    -------    -------
    Gross profit                      34,717     58,803    120,967    191,312
    Selling, general,
     administrative &
     engineering expenses             30,433     34,269     93,466    106,638
                                      ------     ------     ------    -------
    Income from operations             4,284     24,534     27,501     84,674
    Interest expense                      66        276        418        528
    Other income, net of expenses        471        260      1,614      1,099
    Income before income taxes         4,689     24,518     28,697     85,245
    Income taxes                       1,320      8,512     10,157     30,593
                                       -----      -----     ------     ------
    Net income                         3,369     16,006     18,540     54,652
    Net income attributable to
     noncontrolling interest              25         44         16         99
                                          --         --         --         --
    Net income attributable to
     controlling interest             $3,344    $15,962    $18,524    $54,553
                                      ======    =======    =======    =======


    Earnings per Common Share
    Net income attributable to
     controlling interest
              Basic                    $0.15      $0.72      $0.83      $2.45
                                       =====      =====      =====      =====
              Diluted                  $0.15      $0.71      $0.82      $2.41
                                       =====      =====      =====      =====


    Weighted average
     common shares
     outstanding
              Basic               22,453,073 22,289,973 22,439,635 22,270,121
                                  ========== ========== ========== ==========
              Diluted             22,735,064 22,600,978 22,711,526 22,595,174
                                  ========== ========== ========== ==========



                               Astec Industries, Inc.
                            Segment Revenues and Profits
               For the three months ended September 30, 2009 and 2008
                                   (in thousands)
                                     (Unaudited)

                            Aggregate   Mobile
                            and         Asphalt
                 Asphalt    Mining      Paving    Underground  All
                  Group     Group       Group        Group    Others   Total
                 -------    ---------   --------  ----------- ------   -----
    2009 Revenues  44,556     55,865     36,814     16,939    11,910  166,084
    2008 Revenues  56,658     90,268     27,993     40,443    22,081  237,443
    Change $      (12,102)   (34,403)     8,821    (23,504)  (10,171) (71,359)
    Change %       (21.4%)    (38.1%)     31.5%     (58.1%)   (46.1%)  (30.1%)

    2009 Gross
     Profit        10,769     12,691      9,148        784     1,325   34,717
    2009 Gross
     Profit %        24.2%      22.7%      24.8%       4.6%     11.1%    20.9%
    2008 Gross
     Profit        17,045     20,402      6,547     11,318     3,491   58,803
    2008 Gross
     Profit %        30.1%      22.6%      23.4%      28.0%     15.8%    24.8%
    Change         (6,276)    (7,711)     2,601    (10,534)   (2,166) (24,086)

    2009 Profit
     (Loss)         4,045      2,811      4,281     (3,007)   (4,505)   3,625
    2008 Profit
     (Loss)        10,675     10,773      1,465      6,583   (11,948)  17,548
    Change $       (6,630)    (7,962)     2,816     (9,590)    7,443  (13,923)
    Change %       (62.1%)    (73.9%)    192.2%    (145.7%)    62.3%   (79.3%)


    Segment revenues are reported net of intersegment revenues.  Segment gross
    profit is net of profit on intersegment revenues.  A reconciliation of
    total segment profits to the Company's net income attributable to
    controlling interest is as follows:

                                            For the three months ended
                                                   September 30
                                                2009          2008
                                                ----          ----
    Total profit for all segments              $3,625       $17,548
    Net income attributable to
     noncontrolling interest in subsidiary        (25)          (44)
    Elimination of intersegment profit           (256)       (1,542)
                                                 ----        ------
    Net income attributable to controlling
     interest                                  $3,344       $15,962
                                               ======       =======


                                Astec Industries, Inc.
                             Segment Revenues and Profits
                 For the nine months ended September 30, 2009 and 2008
                                    (in thousands)
                                      (Unaudited)


                            Aggregate  Mobile
                            and        Asphalt
                   Asphalt  Mining     Paving   Underground   All
                    Group   Group      Group       Group     Others    Total
                   -------  ---------  -------  -----------  ------    -----
    2009 Revenues  197,385   162,893   105,077    54,331     40,545   560,231
    2008 Revenues  200,572   273,753   130,180   109,298     64,415   778,218
    Change $        (3,187) (110,860)  (25,103)  (54,967)   (23,870) (217,987)
    Change %         (1.6%)   (40.5%)   (19.3%)   (50.3%)    (37.1%)   (28.0%)

    2009 Gross
     Profit         49,860    37,165    24,501     3,820      5,621   120,967
    2009 Gross
     Profit %         25.3%     22.8%     23.3%      7.0%      13.9%     21.6%
    2008 Gross
     Profit         54,652    66,087    32,696    26,728     11,149   191,312
    2008 Gross
     Profit %         27.2%     24.1%     25.1%     24.5%      17.3%     24.6%
    Change          (4,792)  (28,922)   (8,195)  (22,908)    (5,528)  (70,345)

    2009 Profit
     (Loss)         27,325     8,532    10,632    (9,589)   (18,320)   18,580
    2008 Profit
     (Loss)         33,964    32,942    16,030    11,972    (38,724)   56,184
    Change $        (6,639)  (24,410)   (5,398)  (21,561)    20,404   (37,604)
    Change %        (19.5%)   (74.1%)   (33.7%)  (180.1%)      52.7%   (66.9%)


    Segment revenues are reported net of intersegment revenues.  Segment gross
    profit is net of profit on intersegment revenues.  A reconciliation of
    total segment profits to the Company's net income attributable to
    controlling interest is as follows:


                                                  For the nine months ended
                                                        September 30
                                                       2009       2008
                                                       ----       ----
    Total profit for all segments                    $18,580    $56,184
    Net income attributable to noncontrolling
     interest in subsidiary                              (16)       (99)
    Elimination of intersegment profit                   (40)    (1,532)
                                                         ---     ------
    Net income attributable to controlling
     interest                                        $18,524    $54,553
                                                     =======    =======


                               Astec Industries, Inc.
                                 Backlog by Segment
                             September 30, 2009 and 2008
                                   (in thousands)
                                    (Unaudited)

                            Aggregate   Mobile
                            and         Asphalt
                  Asphalt   Mining      Paving   Underground   All
                   Group    Group       Group       Group     Others   Total
                  -------   ----------  -------  -----------  ------   -----
    2009 Backlog   76,328     54,693     4,346      2,947     5,968   144,282
    2008 Backlog  130,688    104,364       974     14,841    10,988   261,855
    Change $      (54,360)   (49,671)    3,372    (11,894)   (5,020) (117,573)
    Change %       (41.6%)    (47.6%)    346.2%    (80.1%)   (45.7%)   (44.9%)

SOURCE Astec Industries, Inc.

http://www.astecindustries.com