Joy Global reports robust quarter

Milwaukee-based Joy Global Inc. reported second quarter net income of $162 million, or $1.52 per share, up from $120 million, or $1.15 per share, in the same period a year ago.
The mining equipment manufacturer’s quarterly net sales grew 19 percent to $1.12 billion from last year.
Original equipment sales increased 10 percent and aftermarket sales were up 24 percent over the prior year quarter.
Mining industry fundamentals remain solid even if the outlook is for slower economic growth, the company said. There is limited excess mine capacity today, and expansion programs are still behind after being on hold for most of 2009 and into 2010.
Mining companies also have to compensate for declining ore grades and for routine production outages from weather, geology and labor issues. As a result, the mining industry continues to deploy record levels of capital expenditures for mine expansion projects.
"We had another outstanding quarter, reaching record levels of performance in order bookings, shipments, operating profit margins and earnings per share," said Mike Sutherlin, Joy Global president and chief executive officer. "The balance in our performance across this range of metrics is more satisfying than the records, and it demonstrates our drive to improve all areas of our business through our Operational Excellence programs. In addition, we continue to see solid fundamentals based on the capital investment decisions of our customers. They continue to move forward with mine expansion plans based on the strong belief that current capacity must be increased significantly to keep up with demand growth, even if the demand pace moderates. And finally, the pending acquisition of LeTourneau will add to our growth prospects by giving us the mining industry’s leading wheel loader to compliment our electric rope shovels and from its drilling products that will benefit from the recent strong start to a major construction phase for new drilling rigs. As a result, we are very pleased with our second quarter for both the results we delivered and the steps we have taken to execute our business strategy."