Milwaukee-based mining equipment manufacturer Joy Global Inc. reported first quarter net income of $23.6 million, or 24 cents per share, down from $48.9 million, or 48 cents per share, in the first quarter of 2014.
Operating income was $48.7 million, down from $85.2 million in the same period a year ago.
Revenue totaled $703.9 million in the quarter, compared with $839.3 million in the first quarter of 2014.
Total net sales of underground mining machinery decreased 19 percent, while surface mining equipment net sales fell 13 percent year-over-year. The company’s revenue was also impacted by $17 million from the impact of foreign currency exchange movements.
“Our first quarter results highlight the continued challenges we face in our end markets as we navigate the extended trough of this cycle,” said Ted Doheny, president and chief executive officer. “Key commodity prices took another step-down this quarter which has created additional challenges for our customers and slowed our incoming order rates. Until supply and demand conditions, we anticipate reduced bookings activity, although the run rate is expected to be above the seasonally slower fiscal first quarter level. With the further slowdown in our end markets, we are accelerating our cost reduction programs while remaining steadfast in building out our new underground hard rock platform and driving new product development and service strategies that will help our customers sustainably lower their cost positions.”