Astec Industries (ASTE) $13.7 Million Shareholder Settlement
Astec Industries reached an agreement with $ASTE investors to settle claims for their wood pellet business issues and disappointing financial results.
Case Details:
On July 25, 2017, Astec disclosed lower margins for its wood pellet plant, causing $ASTE to drop around 8%.
One year later, Astec reported disappointing financial results for Q2 2018.
They decided to cut back on their wood pellet business, dropping plans for Arkansas and reducing involvement in other new pellet plant projects.
$ASTE plummeted by 20% after the news.
On October 23, 2018, Astec reported Q3 2018 results below both its guidance and the market's expectations.
Astec's 2018 revenue growth forecast was revised significantly downwards.
Earnings per share for the quarter fell short of expectations, leading to a nearly 25% drop in $ASTE.
Based on these events, Astec was accused of the following:
Wood pellet plants had issues meeting promised production levels.
These problems posed risks to the company's financial performance and outlook.
Astec Industries reached an agreement with $ASTE investors to settle claims for their wood pellet business issues and disappointing financial results.