Joy Global Q2 Profit Beats Estimates

reported better-than-expected earnings for the fiscal second quarter on Thursday. The Milwaukee, Wisconsin-based company posted quarterly net income of $38.7 million, or $0.40 per share, compared to $74 million, or $0.73 per share, in the year-ago period. Excluding pension settlement and restructuring charges, the company's adjusted earnings dropped to $0.59 per share from $0.76 per share. Its revenue slipped 13 percent year-over-year to $810.5 million. However, analysts were expecting earnings of $0.56 per share on revenue of $809.9 million. The average estimate among 12 Estimize users was for earnings of $0.61 per share and revenue of $843.72 million. Original equipment sales fell 21 percent, while service sales dropped 9 percent. Its consolidated bookings slipped 29 percent to $745 million in the quarter. Service bookings declined 15 percent to $595 million. Bookings for underground mining machinery declined 10 percent year-over-year in the quarter, while bookings for surface mining equipment slipped 43 percent. Its operating income for the second quarter climbed to $70 million, from $126 million in the year-ago quarter. During the second quarter, Joy Global did not repurchase any shares of its common stock. At the end of the second quarter, backlog was $1.26 billion, versus $1.33 billion at the beginning of the year. "The company's fiscal second quarter results reflect increasing pressure on our end-markets from continued oversupplied conditions and sequentially declining commodity pricing," said Ted Doheny, President and Chief Executive Officer. "While our operational execution in the quarter was in line with our expectations, the incoming order rate, in particular in the U.S. coal and global copper markets slowed as customers further reduced capital expenditures and deferred maintenance on their mining equipment fleets." Joy Global shares fell 0.82 percent to close at $38.93 yesterday.