Joy Global reports $1.3 billion loss on crumbling commodity markets

Joy Global
Joy Global's Milwaukee production facility at 4400 W. National Ave.

Milwaukee-based Joy Global Inc. today reported a fourth quarter net loss of $1.3 billion, or $13.43 lost per share, compared with net income of $129.7 million, or $1.31 per share, in the fourth quarter of 2014.

Joy Global
Joy Global’s Milwaukee headquarters.

The mining equipment manufacturer recorded $1.3 billion in impairment charges due to weak markets, which included full impairment of the underground reporting unit goodwill of $1.2 million.

Joy Global reported an operating loss of $1.3 billion, compared with operating income of $176.3 million in the same period a year ago.

Revenue totaled $865.6 million, down from $1.1 billion in the fourth quarter of 2014.

The company attributed the dismal quarter to oversupplied commodity markets that caused customer spending to fall 18 percent from the same time last year, and bookings to decrease by 21 percent year-over-year.

For the full year, Joy Global reported a net loss of $1.2 billion, or $12.02 lost per share, compared with 2014 net income of $338.1 million, or $3.35 per share.

The full-year operating loss was $1.1 billion, compared with operating income of $527.5 million last year.

And 2015 revenue was $3.2 billion, compared with $3.8 billion in 2014.

“During 2015, global commodity markets declined further as supply surpluses led to prices of most major commodities falling well over 25 percent, which adversely impacted our bookings rate,” said Ted Doheny, president and chief executive officer. “Despite the resulting significant drop in our sales volume, we were able to deliver solid adjusted operating profit margins and strong cash generation. In an effort to stay ahead of the market, we implemented further cost reductions and accelerated our footprint optimization plans.

“Due to the continued weakening of global commodity markets, we took several impairment charges in the quarter. Despite these unprecedented times in mining, we remain steadfast in driving our growth strategies and prudently managing our balance sheet.”

Sign up for BizTimes Daily Alerts

Stay up-to-date on the people, companies and issues that impact business in Milwaukee and Southeast Wisconsin

Molly Dill, former BizTimes Milwaukee managing editor.

No posts to display