Astec receives $122.5M pellet plant order
April 1, 2016 - Astec Industries, Inc. has received an order for the final $122.5 million of a pellet plant order for Highland Pellets along with a related deposit on that order.
April 1, 2016 By Astec Industries
The company also received the remainder of the contracted payment on the first $30 million order. The company previously announced receipt of the initial $30 million order on August 20, 2015. The company plans to build and deliver the equipment in the additional order during 2016 and will discuss the details of the entire order on its first quarter earnings release conference call.
“We are pleased to be able to announce that we have been asked to build an additional $122.5 million of equipment to round out the initial $30 million order for the first production line of this multi-line wood pellet plant facility,” said Benjamin Brock, CEO for Astec. “Working with great customers like Highland Pellets, we are able to build and deliver world-class equipment for the wood pellet industry.”
About Astec Industries
Astec Industries, Inc. is a manufacturer of specialized equipment for asphalt road building; aggregate processing; oil, gas and water well drilling; and wood processing. Astec’s manufacturing operations are divided into three primary business segments: road building and related equipment (Infrastructure Group); aggregate processing and mining equipment (Aggregate and Mining Group); and equipment for the extraction and production of fuels, biomass production, and water drilling equipment (Energy Group).
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 effects on the Company from low oil prices, the global mining slow down, the strong U.S. Dollar, and the impact of a long-term highway bill in the United States. 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, oil and liquid asphalt prices, rising steel prices, decreased funding for highway projects, the relative strength/weakness of the dollar to foreign currencies, production capacity, general business conditions in the industry, demand for the Company’s products, seasonality and cyclicality in operating results, seasonality of sales volumes or lower than expected sales volumes, lower than expected margins on custom equipment orders, competitive activity, tax rates and the impact of future legislation thereon, 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, 2014.
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