Joy Global 2Q Revenue Misses Expectations

Joy Global Inc.

, a worldwide leader in high-productivity mining solutions, revealed a net loss for the second quarter driven by 26 percent fall in net sales hurt by 9 percent booking from the year-ago period. Its revenue failed to meet the Street analysts' estimations. Joy Global reported a net loss of $15.3 million or a loss of $0.16 a share for the second quarter compared to net income of $55.9 million or $0.57 a share in the year-ago quarter. On an adjusted basis, earnings from continuing operations plunged to $0.09 a share from $0.64 a share in the previous year quarter. Street analysts' expected the company to report break-even per share. The company's net sales dropped 26 percent to $602 million from $810 million in the year earlier quarter. Street predicted the company to generate revenue of $607.72 million. Its bookings also fell 9 percent to $681 million. Though equipment bookings grew 12 percent, service booking dipped 14 percent on a YOY basis. Joy Global's President and CEO, Ted Doheny, commented, "Despite ongoing challenges in commodity markets, our bookings and financial results in the second quarter were better than expected. While markets overall remain subdued, we were able to secure growth-related original equipment bookings in a few markets during the quarter. In addition, a seasonal up-tick in service sales and continued cost reduction initiatives helped drive sequentially improved earnings and continued solid cash generation in the quarter." He added further, "Our global teams continued to demonstrate their resiliency driving cost reduction and cash from working capital while advancing our key growth strategies. We remain focused on delivering on our customer and shareholder commitments in the toughest mining market we have seen in decades." Going forward, the company expects sales and earnings for the year excluding restructuring charges and mark-to-market pension adjustments to be at the lower end of its earlier forecasted range of $2.4 - $2.6 billion for sales and $0.10 to $0.50 for adjusted earnings per fully diluted share. The stock closed 1.94 percent lower on Wednesday.