AMS located in Sterling, Illinois, develops,designs, engineers, manufactures and markets mobile screening plants, portable and stationary screen structures and vibrating screens designed for the recycle, crushed stone, sand and gravel, industrial and general construction industries. These screening plants include the AMS Vari-Vibe and Duo-Vibe high frequency screens. The AMS high frequency screens are used for chip sizing, sand removal and sizing recycled asphalt where conventional screens are not ideally suited.

During 2008, AMS recently expanded the mobile screening plant familyproduct line with the introduction of the DirectFeed 2516TFT 3620 Fold n Go which is a heavy dutytriple deck screening plant for processing larger materials.material.  AMS also continued its development of high frequency screen boxes with the focus on increased production and performance in fine screening applications.  These new products are primarily marketed to the crushed stone, recycle, sand &and gravel and general construction industries.

BTI maintains an ISO:2000 certification, an internationally recognized standard of quality assurance.  BTI designs, engineers, manufactures and markets hydraulic rock breaker systems for the aggregate, mining and recycling industries. BTI also designs, engineers and manufactures a complete line of four-wheel drive articulated utility vehicles for underground mines and quarries. Complementing its DS Series of scaling vehicles is a BTI scaling vehicle.  BTI's product line now includes an effective and innovative vibratory pick scaling attachment.

In addition to the quarry and mining industries, BTI designs, engineers, manufactures and markets a complete line of hydraulic breakers, compactors and demolition attachments for the North American construction and demolition markets.  In addition to the hydraulic demolition attachments, two mechanical pulverizers are under development.  These attachments are designed to fit a variety of equipment including excavators, backhoe loaders, wheel loaders and skid steer loaders.

BTI offers an extensive aftermarket sales and service program through a highly qualified and trained dealer network.

Osborn maintains  ISO:9000; 14000 and 18000 certifications for quality assurance and designs, engineers, manufactures and markets a complete line of bulk material handling and minerals processing plant and equipment. This equipment is used in the aggregate, mineral mining, metallic miningmetallurgical and recycling industries. Osborn has been a licensee of Telsmith's technology for over 5060 years. In addition to Telsmith, Osborn also manufactures under license of American Pulverizer (USA), IFE (Austria) and Mogensen (UK) and has an in-house brand, Hadfields. Osborn also offers the following equipment: double-toggle jaw crushers, rotary breakers, roll crushers, rolling ring crushers, mills, out-of-balance or exciter-driven screens and feeders, conveyors, portable track-mounted or fixedskid mounted crushing and screening plants conveyor systems, and a full range of idlers.

Aggregate processing and mining equipment is marketed by approximately 7584 direct sales employees, 122136 domestic independent domestic distributors and 71110 international independent international distributors.  The principal purchasers of aggregate processing equipment include highway and heavy equipment contractors, open mine operators, quarry operators and foreign and domestic governmental agencies.

Raw materials used in the manufacture of products include carbon steel and various types of alloy steel, which are normally purchased from distributors.  Raw materials for manufacturing are normally readily available.  BTI purchases hydraulic breakers under purchasing arrangements with a Japanese and a Korean supplier.  The Japanese and Korean suppliers have sufficient capacity to meet the Company's anticipated demand; however, alternative suppliers exist for these components should any supply disruptions occur.

The Aggregate and Mining Group faces strong competition in price, service and product performance. Aggregate processing and mining equipment competitors include Metso (Nordberg); Sandvik (formerly Svedala Industry AB), Extec, Fintec; Rammer, subsidiaries of Terex Corporation (Cedarapids, Powerscreen, Finlay B-L and Pegson)BL-Pegson), Deister; Eagle Iron Works, McLanahan, McCloskey, Allied Construction Products, Ohio Central Steel, Superior Industries, Joy Global Machinery, Lippmann, Equipos Minera, Normet, Gia, Atlas CopcoAtlas-Copco, Eagle Crushers, FLSmidth, Masaba and other smaller manufacturers, both domestic and international.

At December 31, 2008,2009, the Aggregate and Mining Group segment employed 1,6191,186 individuals, of which 1,187807 were engaged in manufacturing, 123107 in engineering and engineering support functions, and 309272 in selling, general and administrative functions.

Telsmith has a labor agreement covering approximately 195139 manufacturing employees which expires on September 18, 2010.  None of Telsmith's other employees are covered by a collective bargaining agreement.

Approximately 145125 of Osborn's manufacturing employees are members of three national labor unions with agreements that expire on June 30, 2011.

At December 31, 20082009 and 2007,2008, the backlog for the Aggregate and Mining Group was approximately $65,340,000$47,793,000 and $113,031,000,$65,340,000, respectively.  Management expects mostall current backlogs to be filled in 2009.2010.

The Mobile Asphalt Paving Group is comprised of Roadtec, Inc. ("Roadtec") and Carlson Paving Products, Inc. ("Carlson").  Roadtec designs, engineers, manufactures and markets asphalt pavers, material transfer vehicles, milling machines and a line of asphalt reclaiming and soil stabilizing machinery.  Carlson designs, engineers and manufactures asphalt paver screeds that attach to the asphalt paver to control the width and depth of the asphalt as it is applied to the roadbed.  Carlson also manufactures Windrow pickup machines which transfer hot mix asphalt from the road bed into the paver's hopper and a newheavy duty commercial class 8 ft. asphalt paver developed in 2008.designed for parking lots, residential and other secondary roads.

Asphalt pavers are used in the application of hot-mix asphalt to the road surface.  Roadtec pavers have been designed to minimize maintenance costs while exceeding road surface smoothness requirements.  Roadtec also manufactures a paver model designed for use with the material transfer vehicle described above, which is designed to carry and spray tack coat directly in front of the hot mix asphalt in a single process.

Roadtec manufactures milling machines designed to remove old asphalt from the road surface before new asphalt mix is applied.  Roadtec's milling machine lines, for larger jobs, are manufactured with a simplified control system, wide conveyors, direct drives and a wide range of horsepower and cutting capabilities to provide versatility in product application.  In addition to its larger half-lane and up highway class milling machines, Roadtec also manufactures a smaller, utility class machine for 2 ft. to 4ft. cutting widths.  Additional upgrades and options are available from Roadtec to enhance its products and their capabilities.

Roadtec’s 700 hp soil stabilizer, which also doubles as an asphalt reclaiming machine for road rehabilitation, stabilizes the sub-grade with additives to provide an improved base on which to pave.  The existing road materials are pulverized and remixed with additives to prepare the surface so the new combined asphalt mix can be applied.  Roadtec’s engineering staff is currently developing the second and third smaller, lower horsepower machinemachines in this class that isare expected to be introduced in 20092010.  The third machine will be geared to the European and Australian markets that require a machine with a third machine to be introduced thereafter.strict 2.5M haul width.

Carlson's patented screeds are part of the asphalt paving machine that lays asphalt on the roadbed at a desired thickness and width, while smoothing and compacting the surface.  Carlson screeds can be configured to fit many types of asphalt paving machines.  A Carlson screed uses a hydraulic powered generator to electrify elements that heat a screed plate so that asphalt will not stick to it while paving.  The generator is also available to power tools or lights for night paving.  Carlson offers options which allow extended paving widths and the addition of a curb on the road edge.  In 2008, Carlson recently introduced the CP 90 commercial class 8 ft. paver which fills the void between competitors commercial pavers, which tend to be lighter and less robust machines, and Roadtec’s highway class paver line.

The Mobile Asphalt Paving Group equipment is marketed both domestically and internationally to highway and heavy equipment contractors, utility contractors and foreign and domestic governmental agencies. Mobile construction equipment and factory authorized machine rebuild services are marketed both directly and through dealers.  This segment employs 2931 direct sales staff, 3233 domestic independent distributors and 28 foreign29 international independent distributors.

Raw materials used in the manufacture of products include carbon steel and various types of alloy steel, which are normally purchased from distributors and other sources.  Raw materials for manufacturing are normally readily available.  Most steel is delivered on a "just-in-time" arrangement from the suppliersuppliers to reduce inventory requirements at the manufacturing facilities, but some steel is bought and occasionally inventoried.  Components used in the manufacturing process include engines, gearboxes, power transmissions and electronic systems.

The Mobile Asphalt Paving Group faces strong competition in price, service and performance.  Paving equipment and screed competitors include Caterpillar Paving Products, Inc., a subsidiary of Caterpillar, Inc., Volvo Construction Equipment, CMI Corporation, a subsidiary of Terex Corporation, Vogele America, a subsidiary of Wirtgen America, Dynapac, a subsidiary of Atlas-Copco and Dynapac.Lee Boy.  The segment's milling machine equipment competitors include Wirtgen, America, Inc., CMI, Corporation, a subsidiary of Terex Corporation, Caterpillar, Inc.,Bomag, Dynapac and Bomag Americas.Volvo.

At December 31, 2008,2009, the Mobile Asphalt Paving Group segment employed 441431 individuals, of which 292279 were engaged in manufacturing, 3132 in engineering and engineering support functions, and 118120 in selling, general and administrative functions.

The Underground Group consists of two manufacturing companies, Astec Underground, Inc. ("Astec Underground"), previously named Trencor, Inc., and American Augers, Inc. ("American Augers").  These two business units design, engineer and manufacture a complete line of underground construction equipment and related accessories.  Astec Underground produces heavy-duty Trencor trenchers and the Astec line of utility trenchers, vibratory plows, and compact horizontal directional drills.drills and recently added vertical drills for geothermal/water well applications to its product line.  American Augers manufactures maxi drills and auger boring machines, and the down-hole tooling to support these units for the underground construction market.  American Augers also manufacturers large vertical drills for the oil and natural gas industry.

Astec Underground produces 128 heavy duty trencher models, 2 vertical drills, 14 utility trencher models and 45 compact horizontal directional drills at its Loudon, Tennessee facility.drills.  American Augers manufactures 1921 models of trenchless equipment at its West Salem, Ohio location.equipment.  In addition to these product models, each factory produces numerous attachments and tools for the equipment.

Astec branded products include trenchers and vibratory plows from 13 to 250 horsepower, and horizontal directional drill (HDD) models with pullback ratings from 6,000 to 100,000 pounds.  These are sold and serviced through a network of 56 dealers that operate 100 locations worldwide.

American Augers designs, engineers, designs, manufactures and markets a wide range of trenchless and vertical drilling equipment.  Today, American Augers is one of the largest manufacturers of auger boring machines in the world, designing and engineering state of the art boring machines, vertical rigs, directional drills and fluid/mud systems used in the underground construction or trenchless market.  The company has one of the broadest product lines in the industry. It serves global customers in the sewer, power, fiber-optic telecommunication, electric, oil and gas and water industries throughout the world.

In 2009 American Augers introduced the new VR-500 vertical drilling rig for use inMCR-10,000, its highest ever cleaning capacity Drilling Fluid Cleaning and Recycling system.  The MCR-10,000 maximizes cleaning capacity and screening area, utilizing three first cut shakers (minimizing contaminants entering the oilsystem) and gas industry in 2008. The VR-500 utilizes a rack and pinion carriagetwo final cut shakers (operating under four Krebs gMAX hydro cyclones).  This high volume, rock-over design which is a recently developed technology that was typically not foundperfect match with American Auger’s large directional drills and P-750 Mud Pump.  American Augers also introduced the 84/96-1800 NG boring machine in previously existing methods2009.  The 84-96-1800NG is the largest and most powerful horizontal auger boring machine on the market today.  This fast return system provides up to 20,000 pounds of oil and gas exploration. For drillers, the VR-500 provides superior bit load from initial surface contact throughout the entire drilling operation and gives the operators the ability to immediately start a horizontal curve after surface penetration resulting in greater access to shallow product formations.  These formations are typically off limits when using most current conventional vertical drilling techniques. The VR-500 also emphasizes safety, as it eliminates many traditional drilling components, and it requires less man power to operate than most rigs.push/pull at high speed, eliminating dogging or winching during retract.

Astec Underground and American Augers maintain excellent relationships with suppliers and have experienced minimal turnover.  The purchasing group has developed partnering relationships with many of the company's key vendors to improve "just-in-time" delivery when feasible and thus lower inventory, butinventory; however, some steel is bought and occasionally inventoried.  Steel is the predominant raw material used to manufacture the products of the Underground Group, and is normally readily available.  Components used in the manufacturing process include engines, hydraulic pumps and motors, gearboxes, power transmissions and electronicselectronic systems.

The Underground Group segment faces strong competition in price, service and product performance and competes with both large publically held companies with resources significantly greater than those of the Company and with various smaller manufacturers.  Competition for trenching, excavating, auger boring, vertical and directional drilling and fluid/mud equipment includes Charles Machine Works (Ditch Witch), Tesmec, Vermeer, Atlas-Copco, Schramm, Prime Drilling GmbH, The Robins Company, Herrenknecht, AG and other smaller custom manufacturers.

At December 31, 2008,2009, the Underground Group segment employed 508256 individuals, of which 358174 were engaged in manufacturing, 5236 in engineering and 9846 in selling, general and administrative functions.

The backlog for the Underground Group segment at December 31, 20082009 and 20072008 was approximately $12,118,000$1,898,000 and $13,347,000,$12,118,000, respectively.  Management expects all current backlogs to be filled in 2009.2010.

This category consists of the Company's business units that do not meet the requirements for separate disclosure as an operating segment.  At December 31, 2008,2009, these other operating units included  Peterson Pacific Corp. (“Peterson”), Astec Australia Pty Ltd (“Astec Australia”), Astec Insurance Company and the Company.  Peterson designs, engineers, manufactures and distributes whole-tree pulpwood chippers, horizontal grinders and blower trucks.  Astec Australia was formed to acquire certainin October 2008 and is the sole distributor of many of the assets of Q-Pave Pty Ltd (“Q-Pave”)company’s product lines in October 2008.Australia and New Zealand.   Astec Australia sells, installs, services and provides parts support for certainmany of the products produced by the Company’s Asphalt, Mobile Asphalt Paving and Underground groups.groups and most recently the Aggregate and Mining Group.

The primary markets served by Peterson are the waste wood grinding, chipping and blower truck markets. Peterson produces two models of whole-tree pulpwood chippers ranging from 765 to 1200 horsepower, one flail debarker, eightone drum chipper, nine models of horizontal grinders, and two models of blower trucks and self contained blower trailers ranging from 45 to 90 cubic yards.

Peterson introduced twothree new products in 2008,2009, a 1200 HP765 hp drum chipper for the biomass fuel chip market, a 2700C trailer version of the 6700B grinder and a 2710C track grinder that is a 475 to 580 hp machine designed for lower volume grinder needs. The upgraded 500needs and a DS6162 track mounted, 130 hp mobile flail chipper released at the end of 2007 helped to more than double prior years sales for that product line.deck screen manufactured by JCI.  Peterson offers its horizontal grinders in four size ranges to fit any application:  475 to 580 hp, 700 to 765 hp, 950 to 1050 hp and 1050 to 1200 hp.  Each size range isMost grinders are also available in a trailer mount and track versionversions with diesel engine or electric power options.  The electric power option is now frequently requested by stationary application users.

Since its inception, Astec Australia sells relocatable and portable asphalt plants and components produced by Astec, Heatec and CEI, asphalt paving equipment and components produced by Roadtec and Carlson as well as trenching equipment produced by Astec Underground.  In 2009, Astec Australia added equipment manufactured by the Company’s Aggregate & Mining Group to its product offerings.  In addition to selling this equipment, Astec Australia will also install, serviceinstalls, services and provideprovides spare parts support for the equipment.  We expect Astec Australia to add products from the Company’s Aggregate & Mining group toequipment it sells and for other equipment its sales portfolio beginningcustomers carry in 2009.their fleets.

Peterson markets its machines and spare parts both domestically and internationally in the waste, wood grinding, chipping and blower truck industries.  Its line of blower trucks serveserves the mulch compost and erosion control markets.  Domestic sales are accomplished through a combination of 913 domestic independent domestic distributors and 10 direct sales employees. International sales are through 8 independent distributors plus direct sales to customers. The principle purchasers of Peterson products are independent contractors in the waste wood grinding, chipping and blower truck businesses. Municipal governments are also customers for waste wood grinders.

The business now operated as Astec Australia which began 12 years ago as Q-Pave, has builthistorically enjoyed its success by partneringstrong partnerships with key large corporate customers but has expanded its customer base by actively marketing products and services to a broader range of customers.  Astec Australia plans to focus on growing its existing business operations and developing new businessby identifying areas of competitive advantage.  Management believes that these opportunities whichwill have a direct exposure to infrastructure development.development, particularly in aggregate and mining sectors.  The gradual addition of several new Astecadditional Company product lines will allow Astec Australia to access market segments not previously serviced by Q-Pave.serviced.  Management believes that Astec Australia has the organizational structure (construction,(sales professionals, construction personnel, service technicians and maintenanceadministrative personnel) and operating systems in place– which are well established – that will allow the business to penetratecontinue to grow and expand the number of business locations, sales volume, product offerings and geographical dispersion of equipment sold.  Australia and New Zealand markets with this expanded product line.are expected to remain the company’s key markets; however, opportunities in other areas of the Pacific Rim and in Southeast Asia will also be pursued.

Raw materials used in the manufacture of products include carbon steel and various types of alloy steel, which are normally purchased from distributors and other sources.  Raw materials for manufacturing are normally readily available.  Most steel is delivered on a "just-in-time" arrangement from the supplier to reduce inventory requirements at the manufacturing facilities, but some steel is bought and occasionally inventoried.  Purchased components used in the manufacturing process include engines, gearboxes, power transmissions and electronic control systems.

Peterson has strong competitors based on product performance, price and service. The principal competitors in North America for high speed grinders are Morbark, Vermeer, Bandit, Diamond Z and CBI with other smaller competitors. Internationally, Doppstadt, Jenz and other smaller companies compete in the grinder segment. Mobile chipper competitors include Morbark, Precision, Doppstadt and other smaller companies. The principal competitors in the blower truck business are Finn and Express Blower (a division of Finn).

Astec Australia’s competitors in each product line are typically the same companies that compete with the Company in other locations.  Competitors for asphalt plant andplants, mobile asphalt equipment, underground equipment and aggregate and mining equipment are allprimarily overseas manufacturers and consequently theywho are therefore subject to the same importing issues as Astec Australia.  The price impact of competition (European product versus American versus Asian) is dependent primarily on the relationship between the US dollar and the Euro exchange rate as compared to the Australian dollar.

At December 31, 2008,2009, the Other Business Units segment employed 270213 individuals of which 208156 were employed by Peterson and 2122 were employed by Astec Australia.  Peterson has 12889 employees engaged in manufacturing, 2117 in engineering and 5950 in selling and general and administrative functions.  Astec Australia has 10 employees engaged in service and installation work and 1112 in selling and general and administrative functions.  The remaining 4135 employees are engaged in general and administrative functions at the parent company.

The backlog for the Other Business Units segment, all of which is attributable to Peterson and Astec Australia, at December 31, 20082009 and 20072008 was approximately $6,780,000$6,199,000 and $9,045,000,$6,780,000, respectively.  Management expects all current backlogs to be filled in 2009.2010.

Although the Company has four reportable business segments, the following information applies to all operating segments of the Company.

Steel is a major component in the Company’s equipment. SteelEarly in 2009 steel prices retracted somewhat during 2005 and 2006declined significantly from record highs during 2004 but returned to historically high 2008 levels during 2008.  Steel prices increased significantlyand remained relatively flat during the first eight10 months of 2008,2009. Beginning in November 2009, market prices for most steel products rose modestly due to shortages in the scrap steel market. The Company was able to offset the majority of these increases with existing steel contracts and advanced steel purchases. The increases have continued into 2010 and we expect market prices to rise moderately as U.S. scrap availability shows no sign of improving during the Company increased sales prices duringfirst quarter of 2010. Most of this impact will continue to be mitigated in the first half of 20082010 by our current steel purchasing contracts which allow us to offset these rising steel costs.  Late inavoid much of the third quartermarket volatility. The Company will be reviewing the situation as we progress toward the second half of 2008, steel prices began to retreat from their 2008 highs. Steel2010 and establishing future contract pricing declined sharply in the fourth quarter of 2008.  We expect fourth quarter pricing to continue through the first quarter of 2009 and pricing levels throughout 2009 to remain well below the peak levels reached in the third quarter of 2008.  However, moderate increases are possible during 2009 due to reduced mill output and reductions in automotive and appliance output which reduce the amount of high quality scrap, a prime input factor for steel pricing.accordingly.

The Company is subject to various laws and governmental regulations concerning environmental matters and employee safety and health in the United States and other countries.  The Environmental Protection Agency, OSHA, other federal agencies and certain state agencies have the authority to promulgate regulations that have an effect on the Company’s operations.  Many of these federal and state agencies may seek fines and penalties for violations of these laws and regulations.  The Company has been able to operate under these laws and regulations without any materially adverse effect on its business.

None of the Company's operating segments operate within highly regulated industries.  However, air pollution control equipment manufactured by the Company, principally for hot-mix asphalt plants, must comply with certain performance standards promulgated by the federal Environmental Protection Agency under the Clean Air Act applicable to "new sources" or new plants.  Management believes that the Company's products meet all material requirements of such regulations and of applicable state pollution standards and environmental protection laws.

In addition, due to the size and weight of certain equipment the Company manufactures, the Company and its customers may encounter conflicting state regulations on maximum weights transportable on highways.  Also, some states have regulations governing the operation of asphalt mixing plants and most states have regulations relating to the accuracy of weights and measures, which affect some of the control systems manufactured by the Company.

Compliance with these government regulations has no material effect on capital expenditures, earnings, or the Company's competitive position within the market.

At December 31, 2008,2009, the Company and its subsidiaries employed 3,9733,137 individuals, of which 2,8302,116 were engaged in manufacturing, 352311 in engineering, including support staff, and 791710 in selling, administrative and management functions.

Other than the Telsmith and Osborn labor agreements described under the Employee subsection of the AsphaltAggregate and Mining Group, there are no other collective bargaining agreements applicable to the Company.  The Company considers its employee relations to be good.

The Company manufactures many of the component parts and related equipment for its products, while several large components of their products are purchased "ready-for-use".  Such items include engines, axles, tires and hydraulics.  In many cases, the Company designs, engineers and manufactures custom component parts and equipment to meet the particular needs of individual customers.  Manufacturing operations during 20082009 took place at 1718 separate locations.  The Company's manufacturing operations consist primarily of fabricating steel components and the assembly and testing of its products to ensure that the Company achieves quality control standards.

The Company periodically conducts technical and service seminars, which are primarily for dealer representatives, contractors, owners, employees and ownersother users of asphalt mixing plants.equipment manufactured by the Company.  In 2008,2009, approximately 450475 representatives of contractors and owners of hot-mix asphalt plants attended seminars held by the Company in Chattanooga, Tennessee.  These seminars, which are taught by Company management and employees, along with select outside speakers and discussion leaders, cover a range of subjects including, but not limited to, technological innovations in the hot-mix asphalt, aggregate processing, paving, milling, and recycling markets.

The Company also sponsors executive seminars for the management of the customers of Astec, Heatec, CEI and Roadtec.  Primarily, members of the Company's management conduct the various seminars, but outside speakers and discussion leaders are also utilized.

During 2008,2009, service training seminars were also held at the Roadtec facility for approximately 300350 customer representatives and an additional fivesix remote seminars were conducted at other locations throughout the country.  Telsmith conducted 42 technical seminars for approximately 9058 customer and dealer representatives during 20082009 at its facility in Mequon, Wisconsin.  Telsmith alsoOsborn conducted two service training seminars for customers at which 25 customer sites.  Total attendance at these two seminars was approximately 95.personnel attended.  KPI, JCI and AMS jointly conduct an annual dealer event called NDC (National Dealers Conference). The event offers the entire dealer network a preview of future product, marketing and promotional programs to help dealers operate successful businesses. Along with this event, boththe companies provide local, regional and national sales and service dealer training programs throughout the year.

During 2008, Astec Underground hosted 8sales training for its dealers at the ICUEE show in October 2009.  Additional field product training events for trenchers and horizontal drillswas also hosted at the Loudon, Tennessee facility.3 dealer locations during 2009.  Over 5070 people received technical and operational training at these product training events.

In addition to seminars, the Company publishes a number of technical bulletins and information bulletins detailing various technological and business issues relating to the asphalt industry.

The Company seeks to obtain patents to protect the novel features of its products.  The Company's subsidiaries hold 94101 United States patents and 3936 foreign patents.  There are 5053 United States and foreign patent applications pending.

The Company and its subsidiaries have approximately 7680 trademarks registered in the United States, including logos for American Augers, Astec, Astec Underground, Carlson Paving, CEI, Heatec, JCI, Peterson Pacific, Roadtec, Telsmith and Trencor, and the names ASTEC, TELSMITH, HEATEC, ROADTEC, TRENCOR, AMERICAN AUGERS, ASTEC, CARLSON, HEATEC, JCI, KOLBERG JCIPIONEER, PETERSON, ROADTEC, TELSMITH and PIONEERTRENCOR as well as a number of other product names.  The Company also has 42 trademarks registered in foreign countries, including Australia, Brazil, Canada, China, France, Germany, Great Britain, India, Italy, Mexico, South Africa, Thailand, Vietnam and the European Union.  The Company and its subsidiaries have 67 United States and foreign trademark applications pending.

The Company dedicates substantial resources to engineering and product development.  At December 31, 2008,2009, the Company and its subsidiaries had 352311 full-time individuals employed in engineering and design capacities.

 Generally, revenues are strongest during the first three quarters of the year with the fourth quarter consistently being the weakest of the quarters. The Company’s revenues did not adhere to this norm in 2009 due to the economic downturn; however we expect future operations to be more typical of historical trends. Operations during the entire year in 20082009 were significantly impacted by the various economic factors discussed in the following paragraphs.

As of December 31, 2008,2009, the Company had a backlog for delivery of products at certain dates in the future of approximately $193,316,000.$135,090,000.  At December 31, 2007,2008, the total backlog was approximately $280,923,000.$193,316,000.  The Company's contracts reflected in the backlog are not, by their terms, subject to termination.  Management believes that the Company is in substantial compliance with all manufacturing and delivery timetables.

Each business segment operates in domestic markets that are highly competitive regarding price, service and product quality.  While specific competitors are named within each business segment discussion above, imports do not generally constitute significant competition for the Company in the United States, except for milling machines.machines and track mounted crushers.  In international sales efforts, however, the Company generally competes with foreign manufacturers that may have a local presence in the market the Company is attempting to penetrate.

In addition, asphalt and concrete are generally considered competitive products as a surface choice for new roads and highways.  A portion of the interstate highway system is paved in concrete, but over 90% of all surfaced roads in the United States are paved with asphalt.  Although concrete is used for some new road surfaces, asphalt is used for most resurfacing.  Management does not believe thatAstec, Inc. introduced a new concrete as a competitive surface choice, materially impactsplant to the Company's business prospects.market in 2009.

OurThe Company’s internet website can be found at www.astecindustries.com.  We make available, free of charge on or through our internet website, access to our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such material is filed, or furnished, to the Securities and Exchange Commission.

General economic downturns, including downturns in the commercial and residential construction industry,industries, could result in a material decrease in our revenues and operating results.  Demand for many of our products, especially in the commercial construction industry, is cyclical.  Sales of our products are sensitive to the states of the U.S., foreign and regional economies in general, and in particular, changes in commercial construction spending and government infrastructure spending.  In addition, many of our costs are fixed and cannot be quickly reduced in response to decreased demand.  The following factors could cause a downturn in the commercial and residential construction industry:industries:

The properties above are owned by the Company unless they are indicated as being leased.

Management believes each of the Company's facilities provides office or manufacturing space suitable for its current needs, and management considers the terms under which it leases facilities to be reasonable.

The Company is currently a party to various claims and legal proceedings that have arisen in the ordinary course of business.  If management believes that a loss arising from such claims and legal proceedings is probable and can reasonably be estimated, the Company records the amount of the loss (excluding estimated legal costs), or the minimum estimated liability when the loss is estimated using a range and no point within the range is more probable than another.  As management becomes aware of additional information concerning such contingencies, any potential liability related to these matters is assessed and the estimates are revised, if necessary.  If management believes that a material loss arising from such claims and legal proceedings is either (i) probable but cannot be reasonably estimated or (ii) reasonably possible but not probable, the Company does not record the amount of the loss, but does make specific disclosure of such matter.  Based upon currently available information and with the advice of counsel, management believes that the ultimate outcome of its current claims and legal proceedings, individually and in the aggregate, will not have a material adverse effect on the Company's financial position, cash flows or results of operations.  However, claims and legal proceedings are subject to inherent uncertainties and rulings unfavorable to the Company could occur.  If an unfavorable ruling were to occur, there exists the possibility of a material adverse effect on the Company's financial position, cash flows or results of operations.

The Company has received notice that Johnson Crushers International, Inc. is subject to an enforcement action brought by the U.S. Environmental Protection Agency and the Oregon Department of Environmental Quality related to an alleged failure to comply with federal and state air permitting regulations.  Each agency is expected to seek sanctions that will include monetary penalties.  No penalty has yet been proposed.  The Company believes that it has cured the alleged violations and is cooperating fully with the regulatory agencies.  At this stage of the investigations, the Company is unable to predict the outcome and the amount of any such sanctions.

The Company has also received notice from the Environmental Protection Agency that it may be responsible for a portion of the costs incurred in connection with an environmental cleanup in Illinois.  The discharge of hazardous materials and associated cleanup relate to activities occurring prior to the Company’s acquisition of Barber Greene in 1986.  The Company believes that over 300 other parties have received similar notice.  At this time, the Company cannotis unable to predict whether the EPA will seek to hold the Company liable for a portion of the cleanup costs or the amount of any such liability.

The name, title, ages and business experience of the executive officers of the Company are listed below.

The Company's Common Stock is traded in the Nasdaq National Market under the symbol "ASTE."  The Company has never paid any cash dividends on its Common Stock and the Company does not intend to pay dividends on its Common Stock in the foreseeable future.

The high and low sales prices of the Company's Common Stock as reported on the Nasdaq National Market for each quarter during the last two fiscal years are as follows: