A global slowdown in mining continues to take a toll on Joy Global Inc., which reported fourth quarter net income of $26.8 million, or 25 cents per share, down markedly from $212.6 million, or $1.99 per share, in the same period a year ago.
The Milwaukee-based mining equipment manufacturer’s quarterly net sales dipped to $1.2 billion from $1.6 billion.
“This quarter once again demonstrates outstanding execution in a difficult market,” said Mike Sutherlin, president and chief executive officer. “We were very encouraged by the sequential recovery of aftermarket orders. This puts us almost back to the levels of a year ago, even though some regions are still lagging. It was especially good to see the return of machine rebuilds to the U.S. underground business, which is an important step in the recovery of this market segment. As lead times come down, the historical lumpiness has returned to our order rates. The third and fourth quarter bookings bound a range that we expect to continue in 2014.”
Sutherlin said the company has made substantial progress in streamlining its businesses and regions and is now taking the next step of consolidating its surface and underground businesses and products under the Joy Global brand.
“Although the reduced value of the separate brands results in a non-cash charge, this is an important step that will continue to make us more efficient, responsive and competitive,” Sutherlin said.