UPDATE: Joy Global Posts Downbeat Q1 Earnings, Lowers Outlook

reported weaker-than-expected results for the first quarter of fiscal 2015 and lowered its guidance for the year. Joy now projects 2015 earnings of $2.50 to $3 per share, versus its prior forecast of $3.10 to $3.50 per share. The company also expects revenue of $3.3 billion to $3.6 billion, compared to prior outlook of $3.6 billion to $3.8 billion. The Milwaukee, Wisconsin-based company posted a quarterly profit of $23.6 million, or $0.24 per share, versus a year-ago profit of $48.9 million, or $0.48 per share. Excluding items, the company's earnings declined to $0.25 per share from $0.49 per share. Its sales dropped 16% to $704 million. However, analysts were expecting a profit of $0.36 per share on revenue of $753.8 million. Net sales for underground mining machinery dropped 19%, while sales for surface mining equipment fell 13% in the quarter. Operating profit tumbled to $49 million in the first quarter, down from $85 million in the year-ago quarter. Bookings declined 19% to $700 million in the quarter. Original equipment orders slipped 30%, while service orders declined 14%. During the quarter, Joy Global repurchased around 955 thousand shares of its common stock for $50 million. At the end of the first quarter, backlog was $1.3 billion, versus $1.3 billion at the beginning of the year. "Our first quarter results highlight the continued challenges we face in our end markets as we navigate the extended trough of this cycle," said Ted Doheny, President and Chief Executive Officer. "Key commodity prices took another step-down this quarter which has created additional challenges for our customers and slowed our incoming order rates. Until supply and demand conditions improve, we anticipate reduced bookings activity, although the run rate is expected to be above the seasonally slower fiscal first quarter level." Joy Global shares declined 1.95% to close at $42.13 yesterday.