Issue link: http://read.dmtmag.com/i/27065
Letter to Shareholders 2010 In 2010, we saw a slightly improved economy over 2009. Our net sales for 2010 were $771.3 million and our net income was $32.4 million. This compared to net sales of $738.1 million and net income of $3.1 million for 2009. Net income for 2009, excluding the impairment charges, was $16.7 million. Accordingly, we consider this a meaningful rebound from the 2009 low point. Furthermore, we are very pleased with the return of revenues to $771.3 million, which is 79.2 percent of the historic high sales achieved in 2008. The recession that began in September 2008 was the deepest and fastest experienced in my career. It has required considerable effort from our management team to right size our business. During the course of the recession, a number of our businesses saw a significant downturn and reducing those companies to the appropriate level was extremely difficult. Due to these efforts and the economic rebound, we were able to regain profitability in most of our business units during 2010, but still feel the effects of the downturn. The American Recovery and Reinvestment Act of 2009 included $27 billion for roads and bridges. These stimulus funds were particularly beneficial to our asphalt and mobile segments and somewhat helpful to the aggregate segment. The bulk of the stimulus money was spent in 2010 and the remaining benefit of the package will diminish during 2011. Due to the loss of the stimulus money and the lack of direction on a new Highway Bill, we are expecting a flat to slightly down year in domestic sales. Nonetheless, we are investing in research and development to develop and introduce new products and improve existing products in order to stimulate greater demand and expand market share in 2011. 2 Astec Industries, Inc. innovate create