Milwaukee-based Joy Global Inc. today reported third quarter net income of $71.3 million, or 71 cents per share, down from $183.2 million, or $1.71 per share, in the third quarter of 2013.
Revenue was $875.7 million, down 34 percent from $1.3 billion in the same period a year ago.
The company attributed the decreases to geographic and geopolitical issues, including the events in Ukraine. Chinese growth faces headwinds because of housing market challenges and dependency on stimulus efforts. Cooler summer weather, depressed commodity prices and decreased export activity have weighed on U.S. coal production demand.
“The Joy Global team continues to execute well in a challenging commodity market environment,” said Ted Doheny, president and chief executive officer. “We continue to see stability in our core service business and have achieved another quarter of solid cash generation, which enabled further progress on our share repurchase program. Additionally, we are encouraged about the recent acquisition of Mining Technologies International Inc. and product development projects that position the company for long-term growth in underground hard rock mining. Overall, we executed according to plan in the third quarter and took several positive steps to advance our business strategy.”
“While market conditions remain tough, we are seeing signs that the trough in the market has been set. During the quarter, rolling twelve month bookings increased sequentially for the first time since the first quarter of 2012. Strengthening economic growth should drive demand, but this will be tempered with supply rationalization in certain markets and result in a slower growth profile looking forward.”