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Astec nears completion on Georgia, Arkansas pellet plants

Astec Industries Inc. recently released first quarter 2018 financial results. During an April 24 investor call, the

company provided an update on pellet plant construction activities in Georgia and Arkansas and discussed future

plans.
 
Benjamin Brock, president and CEO of Astec called 2017 “an extremely challenging year” for the company with

regard to pellet plants it was constructing in Georgia and Arkansas. “We took significant charges last year related

to getting the two plants to be delivered, installed it and getting them up to speed on production for our customers,”

he said. “As an update on our progress on the wood pellet plants, we’ve made good progress and believe our

announced charges during 2017 are adequate to fulfill our commitments to our customers.”
 
Brock indicated work at the Georgia site was essentially complete, with work on the Arkansas plant currently

scheduled to be complete by June 19.
 
Brock said Astec does have ongoing quote activity for new pellet projects. “However, as previously announced, we

are not going to sign a new pellet plant order until we have finished at both of the current plant sites,” he said. “We

believe we will be in a position to add an order in time to deliver a complete…wood pellet plant in 2019. As a

reminder, if we do get an order for another big pellet plant, will only do so as a supplier of the equipment in

accordance with our traditional equipment, parts and service offerings.”
 
Overall, Astec reported net sales of $325.5 million during the first quarter, up from $318.4 million during the same

period of 2017. Earnings for the first quarter were $20.3 million, or 87 cents per diluted share, compared to $15.1

million, or 65 cents per diluted share, during the first quarter of last year.



                                                                   Source:Biomass Magazine