Milwaukee-based Joy Global Inc. today reported fourth quarter net income of $136.9 million, or $1.38 per share, up from $26.8 million, or 25 cents per share, in the fourth quarter of 2013.
But the company’s full-year revenue was $3.8 billion, down 25 percent from $5.0 billion in 2013, and it’s predicting a soft 2015.
Fourth quarter revenue was $1.1 billion, down 4 percent from $1.2 billion in the same period a year ago.
For the full year, the mining equipment manufacturer reported net income of $331 million, or $3.28 per share, down from $533.9 million, or $4.99 per share, in 2013.
A global slowdown in mining and a depressed commodity market have plagued the company for the past several quarters.
“The Joy Global team executed very well and delivered full-year results in line with expectations in what was one of the more challenging years in the company’s recent history,” said Ted Doheny, president and chief executive officer. “While difficult commodity market conditions persisted across the year, our team remained focused on improving the company’s cost position and responding to our customers’ requirements with superior service. For the year, the company exceeded its cost reduction target and grew service bookings by 2 percent. In addition, with solid cash flow, the company raised its dividend for the first time in five years, repurchased 4.7 million shares and advanced its growth strategy by expanding into underground hard rock mining with the acquisition of Mining Technologies International Inc.”
The company expects its challenges to continue in 2015, Doheny said.
“We look forward to 2015 as an opportunity to further drive our strategies and expand our service business. We remain committed to optimizing our global manufacturing footprint and controlling costs,” he said. “We are responding faster to our customers as lead times have been reduced. Achieving this balance is critical for our business and will make us more efficient, responsive, and competitive when market conditions improve. While 2015 will be another challenging year, we are confident in our ability to deliver results, generate cash and continue to allocate our capital resources in a disciplined manner that will create long-term value for our shareholders.”