The global slowdown in mining continues to weigh on the bottom line for Milwaukee-based Joy Global Inc., which reported second quarter operating profit of $126 million, or 73 cents per share, down from $279 million, or $1.69 per share, in the same period a year ago.
The mining equipment manufacturer’s quarterly net sales fell to $930 million from $1.4 billion a year earlier.
The company’s bookings for underground mining machinery decreased 31 percent in comparison to the second quarter of last year.
“The Joy Global team continues to execute well despite significant market headwinds,” said Ted Doheny, president and chief executive officer. “The continued stabilization of our service business, strong cash generation and a multi-shovel order for the Canadian oil sands were highlights in the quarter. Additionally, the recent closing of the Mining Technologies International Inc. transaction will add to our underground hard rock mining growth prospects. As a result, we are pleased with our second quarter performance and the steps we have taken to advance the execution of our business strategy.”
Joy Global, the parent company of P&H Mining Equipment Inc., plans to establish a distribution facility in Oak Creek that will have more than 100 employees.