Astec Industries Announces Succession Plan And Quarterly Dividend Policy
CHATTANOOGA, Tenn., March 4, 2013
CHATTANOOGA, Tenn., March 4, 2013 /PRNewswire/ --Astec Industries, Inc.
(Nasdaq: ASTE) today announced that the Board of Directors has established a
leadership succession plan pursuant to which it intends to transition the
position of Chief Executive Officer and President to Benjamin G. Brock and the
position of Chief Operating Officer and Executive Vice President to Richard J.
Dorris. Pursuant to the succession plan, Dr. J. Don Brock, who currently
serves as the Company's Chief Executive Officer, will continue to lead the
Company as the Executive Chairman of the Company's Board of Directors. In
addition, W. Norman Smith, who currently serves as the Company's President and
Chief Operating Officer, will transition to the role of Vice-Chairman of the
Company's Board of Directors.
The Board believes that the succession plan addresses the future leadership
needs of the Company and provides a formal process to transition the current
leadership roles of Dr. Brock and Mr. Smith to their successors.
The date of the final implementation of the succession plan, including the
appointment of new executive officers, has yet to be determined and its timing
will be dependent on several factors. The Board anticipates, however, that
the succession plan will be fully implemented prior to the end of the 2013
Commenting on the succession plan, Dr. Brock remarked, "In August of 2012 I
completed my 40th year of leading Astec Industries, Inc. In preparation for
long-term succession, our Board of Directors has decided on a plan to promote
Ben Brock to Chief Executive Officer and President and Rick Dorris to
Executive Vice President and Chief Operating Officer. We are excited to see
the progress of this management team. I am continuing to work as my health
permits. Personally, I hope to mentor Ben and Rick for the foreseeable future
and look forward to their active role in managing and running our Company."
Dr. Brock founded the Company in 1972 and has served as its Chief Executive
Officer and President for 40 years and as the Chairman of the Board of
Directors since 1975. Mr. Smith has served as the President of the Company
since Dr. Brock resigned from that position in August 2012, and Mr. Smith
previously served as the Group Vice President – Asphalt since 1998. Mr. Smith
has also served on the Board of Directors of the Company for over 30 years.
Benjamin G. Brock is the son of Dr. Brock and has been an employee of the
Company for over twenty years. He has served as Group Vice President —
Asphalt since August 2012 and as President of Astec, Inc. since 2006. From
2003 until 2006 he held the position of Vice President - Sales of Astec, Inc.
and Vice President/General Manager of CEI Enterprises, Inc. from 1997 until
Richard J. Dorris has served as Group Vice President — Energy since August
2012 and as President of Heatec, Inc. since 2004. From 1999 to 2004 he held
the positions of National Accounts Manager, Project Manager and Director of
Projects for Astec, Inc. Prior to joining Astec, Inc. he was President of
Esstee Manufacturing Company from 1990 to 1999.
The Company also announced that the Board of Directors has adopted a dividend
policy pursuant to which the Company intends to pay quarterly cash dividends
of $0.10 per share on its common stock, commencing during the Company's second
fiscal quarter in 2013.
The amount of future dividends under the Company's dividend policy, and the
declaration and payment thereof, will be based upon the Company's financial
position, results of operations, cash flows, capital requirements and
restrictions under the Company's existing credit agreement, among other
factors, and shall be in compliance with applicable law. The Board of
Directors retains the power to modify, suspend or cancel the Company's
dividend policy in any manner and at any time as it may deem necessary or
appropriate in the future.
Commenting on the adoption of the dividend policy, Dr. Brock said, "We believe
our core strategy of being acquisitive is the best way we can create long-term
value for our shareholders; however, we have chosen to provide our
shareholders with a tangible return of value from the cash flow generated by
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 primary business segments: aggregate processing and
mining equipment; asphalt production equipment; mobile asphalt paving
equipment and oil, gas and water drilling equipment. Additionally, Astec's
Other Group contains one subsidiary that manufactures equipment used for wood
processing and recycling and one that is a company-owned dealership located in
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,
without limitation, statements about the Company's management succession and
payment of dividends in the future. 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,
general business conditions in the industry, demand for the Company's products
and the Company's production capacity, 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, 2012.
SOURCE Astec Industries, Inc.
Contact: J. Don Brock, Chairman of the Board & C.E.O., +1-423-867-4210, Fax:
+1-423-867-4127, email@example.com; or David C. Silvious, Vice
President and Chief Financial Officer, +1-423-899-5898, Fax: +1-423-899-4456,
firstname.lastname@example.org; or Stephen C. Anderson, Vice President,
Director of Investor Relations & Corporate Secretary, +1-423-899-5898, Fax:
Press spacebar to pause and continue. Press esc to stop.