Mining slowdown clips Joy Global’s sales

Milwaukee-based Joy Global Inc. reported second quarter net income of $181.6 million, or $1.69 per share, down from $213.6 million, or $2.00 per share, in the same period a year ago.

The mining equipment manufacturer’s quarterly net sales fell to $1.4 billion from $1.5 billion a year earlier.

Bookings for underground mining machinery increased 8 percent in comparison to last year’s second quarter. However, bookings for surface mining equipment were down 28 percent.

“This quarter again reflected strong execution against continued market headwinds,” said Mike Sutherlin, president and chief executive officer of Joy Global. “Revenues were down 12 percent, in line with expectations, and operating profit margin remained strong at nearly 21 percent due to operational efficiencies and cost reduction efforts. Our original equipment order stream included a longwall system for U.S. coal and, as expected, our aftermarket orders improved sequentially. Even though the overall order rate continues to reflect soft market conditions, the base order rate, before major projects, has been consistent over the last five quarters. We see this as providing market stability until the current commodity supply surplus is worked off.”

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