Joy Global Inc. JOY, a worldwide leader in high-productivity mining solutions, today reported second quarter fiscal 2015 results.
Second Quarter Summary
- Bookings $745 million, down 29 percent from a year ago
- Service bookings $595 million, down 15 percent from a year ago
- Net sales $810 million, down 13 percent from a year ago
- Earnings per diluted share $0.40, compared to $0.73 a year ago
- Excluding pension settlement and restructuring charges of $24 million, adjusted earnings per diluted share $0.59, compared to $0.76 a year ago
- Completed €110 million acquisition of Montabert in June, an underground hard rock mining equipment and service provider
Second Quarter Operating Results
"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. We continue to invest in our service business to respond quickly and more efficiently to our customer's needs and are taking steps to accelerate the optimization of our global manufacturing and service footprint."
Montabert Acquisition
"Despite tough markets, we remain committed to taking prudent actions to improve our business during this cyclical downturn and bolster our strategic position to be a first tier supplier to the underground hard rock mining market. In this regard, we are pleased to announce our acquisition of Montabert S.A.S. (Montabert) from Doosan Holding France S.A.S. Montabert specializes in the design, production and distribution of high quality hydraulic rock breakers, pneumatic equipment, drilling attachments, drifters and related parts and tools. This acquisition represents an important step in expanding product and service capabilities for hard rock mining, tunneling and rock excavation, further diversifying the company's commodity and end market exposures. The Montabert product line will complement our existing fleet of hard rock equipment and leverages our global service center infrastructure providing long-term value to our shareholders," continued Doheny.
The Company closed on its purchase of Montabert on June 1, 2015 for €110 million, subject to a working capital adjustment. Net sales for the last twelve months ended March 31, 2015 for Montabert were approximately $100 million. This acquisition was partially funded through funds borrowed under our Revolving Credit Agreement, with the remainder funded from cash on hand.
| Bookings - (in millions) | |||||||||||||
| Quarter Ended | |||||||||||||
| May 1, | May 2, | % | |||||||||||
| 2015 | 2014 | Change | |||||||||||
| Segment: | |||||||||||||
| Underground | $ | 438 | $ | 488 | (10 | )% | |||||||
| Surface | 344 | 601 | (43 | )% | |||||||||
| Eliminations | (37 | ) | (41 | ) | |||||||||
| Total Bookings by Segment | $ | 745 | $ | 1,048 | (29 | )% | |||||||
| Product: | |||||||||||||
| Service | $ | 595 | $ | 697 | (15 | )% | |||||||
| Original Equipment | 150 | 351 | (57 | )% | |||||||||
| Total Bookings by Product | $ | 745 | $ | 1,048 | (29 | )% | |||||||
Consolidated bookings in the second quarter totaled $745 million, a decrease of 29 percent versus the second quarter of last year. Original equipment orders decreased 57 percent while service orders were down 15 percent compared to the prior year. Current quarter bookings were reduced by $33 million from the impact of foreign currency exchange movements versus the year ago period, a $9 million decrease for original equipment and a $24 million decrease for service bookings. When adjusting for foreign currency exchange, orders were down 26 percent compared to the second quarter of last year, with original equipment orders down 55 percent and service orders down 11 percent.
Bookings for underground mining machinery decreased 10 percent in comparison to the second quarter of last year. Original equipment orders decreased 11 percent compared to the prior year. Original equipment orders increased in North America and Africa, but were more than offset by declines in all other regions. Service orders decreased 10 percent compared to the prior year, with increases in Australia and China more than offset by decreases in all other regions. Orders for underground mining machinery were reduced by $25 million from the impact of foreign currency exchange compared to the second quarter of last year.
Bookings for surface mining equipment decreased 43 percent in comparison to the second quarter of last year. Original equipment orders decreased 87 percent compared to the prior year, which included a multiple shovel order for an oil sands customer. Original equipment orders decreased in all regions except Eurasia. Service orders decreased 18 percent compared to the prior year, with declines in all regions except Latin America, which was flat, and China. Orders for surface mining equipment were reduced by $8 million from the impact of foreign currency exchange compared to the second quarter of last year.
Backlog at the end of the second quarter was $1.26 billion, down from $1.33 billion at the beginning of the year.
| Net Sales - (in millions) | |||||||||||||
| Quarter Ended | |||||||||||||
| May 1, | May 2, | % | |||||||||||
| 2015 | 2014 | Change | |||||||||||
| Segment: | |||||||||||||
| Underground | $ | 424 | $ | 518 | (18 | )% | |||||||
| Surface | 423 | 444 | (5 | )% | |||||||||
| Eliminations | (37 | ) | (32 | ) | |||||||||
| Total Net Sales by Segment | $ | 810 | $ | 930 | (13 | )% | |||||||
| Product: | |||||||||||||
| Service | $ | 595 | $ | 656 | (9 | )% | |||||||
| Original equipment | 215 | 274 | (21 | )% | |||||||||
| Total Net Sales by Product | $ | 810 | $ | 930 | (13 | )% | |||||||
Consolidated net sales totaled $810 million, a 13 percent decrease versus the second quarter of last year. Original equipment sales decreased 21 percent and service sales decreased 9 percent compared to the prior year. Current quarter net sales were reduced by $30 million from the impact of foreign currency exchange movements versus the year ago period. When adjusting for foreign currency exchange, sales were down 10 percent compared to the second quarter of last year with original equipment sales down 20 percent and service sales down 5 percent.
Net sales for underground mining machinery decreased 18 percent in comparison to the second quarter of last year. Original equipment sales decreased 31 percent compared to the prior year, with increases in North America and Africa more than offset by decreases in all other regions. Service sales decreased 12 percent compared to the prior year, with a slight increase in North America more than offset by decreases in all other regions. Net sales for underground mining machinery were reduced by $20 million from the impact of foreign currency exchange compared to the second quarter of last year.
Net sales for surface mining equipment decreased 5 percent in comparison to the second quarter of last year. Original equipment sales decreased 1 percent compared to the prior year, with increases in North America, Eurasia and China more than offset by declines in all other regions. Service sales decreased 6 percent compared to the prior year, with flat sales in Latin America more than offset by declines in all other regions. Net sales for surface mining equipment were reduced by $10 million from the impact of foreign currency exchange compared to the second quarter of last year.
| Operating Income - (in millions) | ||||||||||||||||
| Quarter Ended | ||||||||||||||||
|
May 1, |
May 2, |
Return on Sales | ||||||||||||||
| 2015 | 2014 | |||||||||||||||
| Underground | $ | 52.4 | $ | 71.3 | 12.4 | % | 13.8 | % | ||||||||
| Surface | 62.4 | 83.5 | 14.7 | % | 18.8 | % | ||||||||||
| Corporate Expenses | (11.8 | ) | (13.6 | ) | ||||||||||||
| Eliminations | (8.7 | ) | (10.2 | ) | ||||||||||||
| Adjusted Operating Income | 94.3 | 131.0 | 11.6 | % | 14.1 | % | ||||||||||
| Restructuring charges | (11.1 | ) | (4.7 | ) |
(1.3 |
)% | (0.5 | )% | ||||||||
| Non-cash pension settlement charge | (12.9 | ) | — | (1.6 | )% | |||||||||||
| Acquisition costs | — | (0.6 | ) | (0.1 | )% | |||||||||||
| Total Operating Income | $ | 70.3 | $ | 125.7 | 8.7 | % | 13.5 | % | ||||||||
Operating income for the second quarter of fiscal 2015 totaled $70 million, compared to $126 million in the second quarter of fiscal 2014. The second quarter of 2015 included a negative impact of $24.0 million for restructuring charges and a non-cash pension settlement charge, compared to a $5.3 million negative impact in 2014 for restructuring charges and acquisition costs. The decrease in operating income, before restructuring, non-cash pension settlement charges and acquisition costs in both periods, was due to lower sales volumes, unfavorable product mix and increased period costs partially offset by savings from the company's cost reduction programs and lower incentive based compensation expense.
Restructuring activities continued in the quarter to better align the company's workforce and overall cost structure with current and expected future demand. Additional restructuring charges are expected in future periods as the Company continues to optimize its manufacturing footprint.
In conjunction with a recent UK law change, we recorded a non-cash pension settlement charge in the current quarter of $12.9 million resulting from certain members transferring their benefit out of the Company's defined benefit pension plan to a defined contribution plan.
| Net Income and Earnings Per Share Reconciliation | |||||||||||||||||
| Quarter Ended | |||||||||||||||||
| May 1, 2015 | May 2, 2014 | ||||||||||||||||
| Dollars | Fully | Dollars | Fully | ||||||||||||||
| in millions | Diluted EPS | in millions | Diluted EPS | ||||||||||||||
| Operating profit | $ | 70.3 | $ | 125.7 | |||||||||||||
| Interest expense, net | 13.3 | 13.8 | |||||||||||||||
| Income tax expense | 18.3 | 37.9 | |||||||||||||||
|
Net Income and EPS |
38.7 | $ | 0.40 | 74.0 | $ | 0.73 | |||||||||||
| Add: | |||||||||||||||||
| Restructuring charges, net of tax | 7.6 | 0.08 | 3.5 | 0.03 | |||||||||||||
| Non-cash pension settlement charge, net of tax | 10.3 | 0.10 | — | — | |||||||||||||
| Acquisition costs, net of tax | — | — | 0.4 | — | |||||||||||||
| Net discrete tax charge | 1.2 | 0.01 | — | — | |||||||||||||
| Deduct: | |||||||||||||||||
|
Net discrete tax benefits |
— | — | 0.6 | — | |||||||||||||
|
Adjusted Net Income and Adjusted EPS |
$ | 57.8 | $ | 0.59 | $ | 77.3 | $ | 0.76 | |||||||||
Fully diluted earnings per share for the second quarter of fiscal 2015 totaled $0.40, compared to $0.73 in the second quarter of fiscal 2014. The second quarter of fiscal 2015 included a negative impact of $0.19 per share for restructuring charges, the non-cash pension settlement charge and a net discrete tax loss, compared to $0.03 per share charge in the second quarter of fiscal 2014.
The effective income tax rate was 32.1 percent for the second quarter of fiscal 2015, compared to 33.9 percent in the second quarter of fiscal 2014. Excluding discrete tax items in both periods, the effective income tax rate was 30.0 percent and 34.4 percent in the second quarter of fiscal 2015 and 2014, respectively. The decrease in the effective tax rate for the quarter was primarily attributable to a change in the geographical mix of projected earnings.
Cash provided by continuing operations was $71 million for the second quarter of fiscal 2015, compared to $142 million provided by continuing operations in the second quarter of fiscal 2014. The decrease in cash from continuing operations during the second quarter versus the year ago period was primarily due to lower earnings and reduced cash from trade working capital.
Capital expenditures were $18 million in the second quarter of fiscal 2015, which was flat with the second quarter of fiscal 2014.
During the second quarter, the company did not repurchase any shares of its common stock. Since inception of the share repurchase program in the fourth quarter of fiscal 2013, the company has repurchased 9.8 million shares of its common stock for $533 million, leaving $467 million available under the current Board authorization.
Adjusted diluted earnings per share and adjusted net income metrics are non-GAAP measures that remove the effect of certain items and are provided to present consistency to aid investors in comparing our operating results across periods. These measures are not purported to be alternatives to diluted earnings per share or net income presented in accordance with GAAP.
Market Outlook
While global economic growth improved through the first four months of the calendar year, other economic and commodity indicators painted a mixed picture about the strength of end markets. Strengthening economic activity in the Eurozone was met by first quarter contraction in the U.S. of 0.7 percent as extreme weather and west coast port closures impacted trade and manufacturing. At the same time, Chinese growth cooled to 7.0 percent, which is the lowest level in six years. China has implemented significant monetary stimulus efforts in the form of reductions in both the reserve requirement ratio and lending rates over the last several months. Although global growth is still expected to be just over 3 percent this year supporting demand for mined commodities, there are several macroeconomic pressures that could increase and materially impact the growth profile.
Concerns around the strength of the global economy in the first quarter contributed to copper prices falling below $2.50 per pound at the end of January. Since that time, copper prices have recovered over 15 percent and are currently trending around $2.80 per pound as anticipated Chinese stimulus has helped to drive positive sentiment in the market. Although refined copper markets saw a 153,000 tonne surplus through February due to weak demand and are expected to remain in surplus this year, prices appear to have stabilized in the near-term as demand is expected to pick-up in the second half of the year. Longer-term, the copper project pipeline remains healthy as the expected return to a deficit position in the market is expected to support investment in the industry.
Pressure on U.S. coal markets has increased since February as natural gas prices have averaged $2.77/mmBtu over that period and natural gas powered electricity generation has grown nearly 20 percent from a year ago. Along with Mercury and Air Toxins Standards (MATs) regulations taking effect in April, U.S. coal burn has fallen nearly 35 million tons through March and is expected to decline at least 75 million tons this year. U.S. coal exports have also been challenged as a rising dollar and depressed seaborne prices have resulted in exports trending at their lowest run-rate since June 2011 with full-year exports now expected at 85 million tons. The combination of these forces is expected to reduce U.S. coal production at least 50 million tons this year, which is more than previously expected.
Challenges in the seaborne thermal coal market have increased in the last several months as prices drifted below $60 per tonne in some cases. While further supply rationalization is still needed to balance the market, the strengthening U.S. dollar along with lower oil prices has effectively lowered production costs for the Australian, Russian and Indonesian producers, slowing the supply adjustment process.
After trending around $115 per tonne for nearly a year, met coal prices have declined precipitously over the last two months reaching $85 per tonne. The primary driver has been a weak global steel market where production is down 1.8 percent through April. Global steel consumption was recently revised lower for 2015 to grow at 0.5 percent down from an earlier estimate of 2.0 percent. The decline in Chinese steel production has resulted in a 16 percent decline in met coal imports through April. Further exacerbating the oversupplied market has been the significant depreciation in several major producing regions' currencies which similar to thermal coal has slowed the supply adjustment process.
The revised outlook for global steel markets has also impacted seaborne iron ore prices which fell below $50 per tonne during the second quarter. While prices have rebounded somewhat in recent weeks as signs of supply rationalization have been announced, they are trending around $55 per tonne, and absent a demand catalyst or a divergence from the expected ramp up in supply over the next two years, will likely remain at or near this level.
While global mining markets attempt to establish a trough, concern over end-user demand for commodities and oversupplied markets still persists. Although the expected medium-term recovery and expansion in the mining market may be closer, the near-term austerity measures and asset consolidation in the mining industry continue to adversely affect the business.
Company Outlook
"While we navigate through the downturn of this mining cycle, we remain committed to our growth strategies. Our acquisition of Montabert will further expand our underground hard rock product portfolio," continued Doheny. "We believe that the rock drill and rock breaker product lines are highly differentiated products complementary to our hard rock mining business. The strong service components accompanied with our existing service footprint provides a competitive advantage for us.
"During these tough times, our ability to provide world-class service is more critical than ever as shorter lead-times and greater responsiveness is expected by our customers and will position us to increase our capture rates for service on our installed base of equipment. At the end of the quarter we opened a new service facility in Peru that will allow us to grow our service business by being closer to our customers in the region. We will continue to invest in our global network of service facilities, add new service products and consumables and expand our market leading position in JoySmartsm services that help our customers sustainably lower their costs.
"Notwithstanding restructuring actions taken in the quarter to reduce our cost position and the acceleration of our manufacturing and service optimization plan, the further step down in our key commodity end markets, in particular with U.S. coal and global copper, has resulted in reduced production forecasts and further deferred maintenance on our installed base of equipment with our customers. We now expect sales and earnings for the year, excluding restructuring, pension settlement and acquisition related charges, to be at the low end of our previous guidance range of $3.3 billion to $3.6 billion for revenues and $2.50 to $3.00 for adjusted earnings per fully diluted share."
Quarterly Conference Call
Management will host a quarterly conference call to discuss the Company's second quarter results at 11:00 a.m. Eastern time on June 4, 2015. Interested parties can listen to the call by dialing 888-504-7966 in the United States or 719-325-2437 outside of the United States, access code #7285398, at least 15 minutes prior to the 11:00 a.m. Eastern start time of the call. A rebroadcast of the call will be available until the close of business on June 25, 2015 by dialing 888-203-1112 or 719-457-0820, access code #7285398.
Alternatively, interested parties can listen to a live webcast of the call on the Joy Global Inc. website at http://investors.joyglobal.com/events.cfm. To listen, please register and download audio software on the site at least 15 minutes prior to the start of the call. A replay of the webcast will be available until the close of business on July 31, 2015.
About Joy Global Inc.
Joy Global Inc. is a worldwide leader in mining equipment and services for surface and underground mining.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Terms such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "indicate," "intend," "may be," "objective," "plan," "potential" "predict," "should," "will be," and similar expressions are intended to identify forward-looking statements. The forward-looking statements in this press release are based on our current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from any forward-looking statement. In addition, certain market outlook information and other market statistical data contained herein is based on third party sources that we cannot independently verify, but that we believe to be reliable. Forward-looking statements contained herein are made only as to the date of this press release and we undertake no obligation to update forward-looking statements to reflect new information. We cannot assure you the projected results or events will be achieved. Because forward-looking statements involve risks and uncertainties, they are subject to change at any time. Important factors that could cause our actual results to differ materially from the results anticipated by the forward-looking statements include (i) risks of international operations, including currency fluctuations, (ii) risks associated with general economic conditions and cyclical economic conditions affecting the global mining industry, (iii) risks associated with acquisitions, (iv) risks associated with indebtedness, (v) risks associated with the international and U.S. commodity markets for coal, copper and other materials mined by our customers, (vi) risks associated with access to major purchased items, such as steel, castings, forgings and bearings, and (vii) risks associated with labor markets and other risks, as well as the risks, uncertainties and cautionary statements set forth in our public filings with the Securities and Exchange Commission.
JOY-F
| JOY GLOBAL INC. | ||||||||||||||||
| SUMMARY OF CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||
| May 1, | May 2, | May 1, | May 2, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net sales | $ | 810,523 | $ | 929,730 | $ | 1,514,396 | $ | 1,769,042 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of sales | 579,403 | 651,592 | 1,100,149 | 1,255,770 | ||||||||||||
| Product development, selling and administrative expenses | 161,722 | 154,534 | 299,356 | 307,563 | ||||||||||||
| Other income | (900 | ) | (2,138 | ) | (4,113 | ) | (5,278 | ) | ||||||||
| Operating income | 70,298 | 125,742 | 119,004 | 210,987 | ||||||||||||
| Interest expense, net | 13,272 | 13,848 | 26,229 | 27,668 | ||||||||||||
| Income before income taxes | 57,026 | 111,894 | 92,775 | 183,319 | ||||||||||||
| Provision for income taxes | 18,313 | 37,943 | 30,468 | 60,507 | ||||||||||||
| Net income | $ | 38,713 | $ | 73,951 | $ | 62,307 | $ | 122,812 | ||||||||
| Basic earnings per share | $ | 0.40 | $ | 0.74 | $ | 0.64 | $ | 1.22 | ||||||||
| Diluted earnings per share | $ | 0.40 | $ | 0.73 | $ | 0.64 | $ | 1.20 | ||||||||
| Dividends per share | $ | 0.20 | $ | 0.175 | $ | 0.40 | $ | 0.35 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 97,416 | 100,346 | 97,482 | 101,071 | ||||||||||||
| Diluted | 97,972 | 101,203 | 98,055 | 101,935 | ||||||||||||
Note - For complete information, including footnote disclosures, please refer to the Company's Form 10-Q filing with the SEC.
|
JOY GLOBAL INC. |
|||||||
| SUMMARY CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| (In thousands) | |||||||
| May 1, | October 31, | ||||||
| 2015 | 2014 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 192,091 | $ | 270,191 | |||
| Accounts receivable, net | 923,453 | 1,059,709 | |||||
| Inventories | 1,192,093 | 1,108,308 | |||||
| Other current assets | 174,997 | 180,151 | |||||
| Total current assets | 2,482,634 | 2,618,359 | |||||
| Property, plant and equipment, net | 872,363 | 892,440 | |||||
| Other intangible assets, net | 304,758 | 319,269 | |||||
| Goodwill | 1,500,603 | 1,516,693 | |||||
| Deferred income taxes | 68,150 | 70,181 | |||||
| Other assets | 169,150 | 180,044 | |||||
| Total assets | $ | 5,397,658 | $ | 5,596,986 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Short-term borrowings, including current portion of long-term obligations | $ | 21,793 | $ | 11,739 | |||
| Trade accounts payable | 352,743 | 395,945 | |||||
| Employee compensation and benefits | 85,568 | 136,911 | |||||
| Advance payments and progress billings | 329,871 | 285,939 | |||||
| Accrued warranties | 58,194 | 67,272 | |||||
| Other accrued liabilities | 223,791 | 265,600 | |||||
| Current liabilities of discontinued operations | 11,582 | 11,582 | |||||
| Total current liabilities | 1,083,542 | 1,174,988 | |||||
| Long-term obligations | 1,260,499 | 1,269,541 | |||||
| Other liabilities: | |||||||
| Liability for postretirement benefits | 19,021 | 19,609 | |||||
| Accrued pension costs | 140,070 | 144,379 | |||||
| Other non-current liabilities | 152,645 | 147,472 | |||||
| Total other liabilities | 311,736 | 311,460 | |||||
| Shareholders' equity | 2,741,881 | 2,840,997 | |||||
| Total liabilities and shareholders' equity | $ | 5,397,658 | $ | 5,596,986 | |||
Note - For complete information, including footnote disclosures, please refer to the Company's Form 10-Q filing with the SEC.
|
JOY GLOBAL INC. |
||||||||||||||||
| SUMMARY OF CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||
| May 1, | May 2, | May 1, | May 2, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Operating Activities: | ||||||||||||||||
| Net income | $ | 38,713 | $ | 73,951 | $ | 62,307 | $ | 122,812 | ||||||||
| Depreciation and amortization | 32,497 | 32,071 | 66,176 | 64,837 | ||||||||||||
| Other adjustments to continuing operations, net | 27,928 | 4,254 | 39,769 | 12,742 | ||||||||||||
| Changes in working capital items attributed to continuing operations: | ||||||||||||||||
| Accounts receivable, net | (33,024 | ) | 50,098 | 105,010 | 166,177 | |||||||||||
| Inventories | (22,699 | ) | 13,869 | (133,066 | ) | (15,577 | ) | |||||||||
| Trade accounts payable | 28,741 | 50,125 | (36,574 | ) | (45,992 | ) | ||||||||||
| Advance payments and progress billings | 15,429 | (81,271 | ) | 57,926 | 9,182 | |||||||||||
| Other working capital items | (16,469 | ) | (1,261 | ) | (108,787 | ) | (107,506 | ) | ||||||||
| Net cash provided by operating activities of continuing operations | 71,116 | 141,836 | 52,761 | 206,675 | ||||||||||||
| Net cash used by operating activities of discontinued operations | — | (182 | ) | — | (115 | ) | ||||||||||
| Net cash provided by operating activities | 71,116 | 141,654 | 52,761 | 206,560 | ||||||||||||
| Investing Activities: | ||||||||||||||||
| Property, plant, and equipment acquired | (17,537 | ) | (17,649 | ) | (39,795 | ) | (44,304 | ) | ||||||||
| Other investing activities, net | 3,434 | 2,079 | 4,331 | 4,139 | ||||||||||||
| Net cash used by investing activities | (14,103 | ) | (15,570 | ) | (35,464 | ) | (40,165 | ) | ||||||||
| Financing Activities: | ||||||||||||||||
| Common stock issued | 2,287 | 4,596 | 2,560 | 6,581 | ||||||||||||
| Dividends paid | (19,475 | ) | (17,524 | ) | (38,964 | ) | (35,374 | ) | ||||||||
| Treasury stock purchased | — | (7,468 | ) | (50,000 | ) | (129,504 | ) | |||||||||
| Other financing activities, net | 425 | (12,651 | ) | 865 | (26,694 | ) | ||||||||||
| Net cash used by financing activities | (16,763 | ) | (33,047 | ) | (85,539 | ) | (184,991 | ) | ||||||||
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | (485 | ) | 1,854 | (9,858 | ) | (1,323 | ) | |||||||||
| Increase (Decrease) in Cash and Cash Equivalents | 39,765 | 94,891 | (78,100 | ) | (19,919 | ) | ||||||||||
| Cash and Cash Equivalents at the Beginning of Period | 152,326 | 290,899 | 270,191 | 405,709 | ||||||||||||
| Cash and Cash Equivalents at the End of Period | $ | 192,091 | $ | 385,790 | $ | 192,091 | $ | 385,790 | ||||||||
| Supplemental cash flow information: | ||||||||||||||||
| Interest paid | $ | 15,626 | $ | 15,485 | $ | 30,724 | $ | 31,336 | ||||||||
| Income taxes paid | 26,524 | 43,743 | 49,297 | 74,511 | ||||||||||||
| Depreciation and amortization by segment: | ||||||||||||||||
| Underground | $ | 18,524 | $ | 17,478 | $ | 37,712 | $ | 36,212 | ||||||||
| Surface | 13,157 | 13,917 | 26,946 | 27,209 | ||||||||||||
| Corporate | 816 | 676 | 1,518 | 1,416 | ||||||||||||
| Total depreciation and amortization | $ | 32,497 | $ | 32,071 | $ | 66,176 | $ | 64,837 | ||||||||
Note - For complete information, including footnote disclosures, please refer to the Company's Form 10-Q filing with the SEC.
| JOY GLOBAL INC. | |||||||||||||||
| SUPPLEMENTAL FINANCIAL DATA | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In thousands) | |||||||||||||||
| Quarter Ended | |||||||||||||||
| May 1, | May 2, | ||||||||||||||
| 2015 | 2014 | Change | |||||||||||||
| Net Sales By Segment: | |||||||||||||||
| Underground | $ | 423,939 | $ | 517,878 | $ | (93,939 | ) | (18 | )% | ||||||
| Surface | 423,386 | 443,625 | (20,239 | ) | (5 | )% | |||||||||
| Eliminations | (36,802 | ) | (31,773 | ) | (5,029 | ) | |||||||||
| Total Sales By Segment | $ | 810,523 | $ | 929,730 | $ | (119,207 | ) | (13 | )% | ||||||
| Net Sales By Product Stream: | |||||||||||||||
| Service | $ | 594,980 | $ | 656,104 | $ | (61,124 | ) | (9 | )% | ||||||
| Original Equipment | 215,543 | 273,626 | (58,083 | ) | (21 | )% | |||||||||
| Total Sales By Product Stream | $ | 810,523 | $ | 929,730 | $ | (119,207 | ) | (13 | )% | ||||||
| Net Sales By Geography: | |||||||||||||||
| United States | $ | 287,765 | $ | 268,309 | $ | 19,456 | 7 | % | |||||||
| Rest of World | 522,758 | 661,421 | (138,663 | ) | (21 | )% | |||||||||
| Total Sales By Geography | $ | 810,523 | $ | 929,730 | $ | (119,207 | ) | (13 | )% | ||||||
| Operating Income By Segment: | % of Net Sales | ||||||||||||||
| Underground | $ | 34,527 | $ | 67,532 | 8.1 | % | 13.0 | % | |||||||
| Surface | 56,552 | 82,613 | 13.4 | % | 18.6 | % | |||||||||
| Corporate | (12,067 | ) | (14,203 | ) | |||||||||||
| Eliminations | (8,714 | ) | (10,200 | ) | |||||||||||
| Total Operating Income | $ | 70,298 | $ | 125,742 | 8.7 | % | 13.5 | % | |||||||
| Six Months Ended | |||||||||||||||
| May 1, | May 2, | ||||||||||||||
| 2015 | 2014 | Change | |||||||||||||
| Net Sales By Segment: | |||||||||||||||
| Underground | $ | 808,602 | $ | 995,341 | $ | (186,739 | ) | (19 | )% | ||||||
| Surface | 770,422 | 844,321 | (73,899 | ) | (9 | )% | |||||||||
| Eliminations | (64,628 | ) | (70,620 | ) | 5,992 | ||||||||||
| Total Sales By Segment | $ | 1,514,396 | $ | 1,769,042 | $ | (254,646 | ) | (14 | )% | ||||||
| Net Sales By Product Stream: | |||||||||||||||
| Service | $ | 1,110,160 | $ | 1,228,977 | $ | (118,817 | ) | (10 | )% | ||||||
| Original Equipment | 404,236 | 540,065 | (135,829 | ) | (25 | )% | |||||||||
| Total Sales By Product Stream | $ | 1,514,396 | $ | 1,769,042 | $ | (254,646 | ) | (14 | )% | ||||||
| Net Sales By Geography: | |||||||||||||||
| United States | $ | 536,126 | $ | 553,886 | $ | (17,760 | ) | (3 | )% | ||||||
| Rest of World | 978,270 | 1,215,156 | (236,886 | ) | (19 | )% | |||||||||
| Total Sales By Geography | $ | 1,514,396 | $ | 1,769,042 | $ | (254,646 | ) | (14 | )% | ||||||
| Operating Income By Segment: | % of Net Sales | ||||||||||||||
| Underground | $ | 72,724 | $ | 130,138 | 9.0 | % | 13.1 | % | |||||||
| Surface | 85,612 | 128,765 | 11.1 | % | 15.3 | % | |||||||||
| Corporate | (24,162 | ) | (28,425 | ) | |||||||||||
| Eliminations | (15,170 | ) | (19,491 | ) | |||||||||||
| Total Operating Income | $ | 119,004 | $ | 210,987 | 7.9 | % | 11.9 | % | |||||||
Note - For complete information, including footnote disclosures, please refer to the Company's Form 10-Q filing with the SEC.
| JOY GLOBAL INC. | |||||||||||||||
| SUPPLEMENTAL FINANCIAL DATA | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In thousands) | |||||||||||||||
| Quarter Ended | |||||||||||||||
| May 1, | May 2, | ||||||||||||||
| 2015 | 2014 | Change | |||||||||||||
| Bookings By Segment: | |||||||||||||||
| Underground | $ | 437,482 | $ | 488,052 | $ | (50,570 | ) | (10 | )% | ||||||
| Surface | 344,260 | 600,453 | (256,193 | ) | (43 | )% | |||||||||
| Eliminations | (36,985 | ) | (40,923 | ) | 3,938 | ||||||||||
| Total Bookings By Segment | $ | 744,757 | $ | 1,047,582 | $ | (302,825 | ) | (29 | )% | ||||||
| Bookings By Product Stream: | |||||||||||||||
| Service | $ | 594,933 | $ | 696,992 | $ | (102,059 | ) | (15 | )% | ||||||
| Original Equipment | 149,824 | 350,590 | (200,766 | ) | (57 | )% | |||||||||
| Total Bookings By Product Stream | $ | 744,757 | $ | 1,047,582 | $ | (302,825 | ) | (29 | )% | ||||||
| Six Months Ended | |||||||||||||||
| May 1, | May 2, | ||||||||||||||
| 2015 | 2014 | Change | |||||||||||||
| Bookings By Segment: | |||||||||||||||
| Underground | $ | 844,391 | $ | 939,103 | $ | (94,712 | ) | (10 | )% | ||||||
| Surface | 655,058 | 1,033,910 | (378,852 | ) | (37 | )% | |||||||||
| Eliminations | (54,543 | ) | (64,905 | ) | 10,362 | ||||||||||
| Total Bookings By Segment | $ | 1,444,906 | $ | 1,908,108 | $ | (463,202 | ) | (24 | )% | ||||||
| Bookings By Product Stream: | |||||||||||||||
| Service | $ | 1,119,078 | $ | 1,307,391 | $ | (188,313 | ) | (14 | )% | ||||||
| Original Equipment | 325,828 | 600,717 | (274,889 | ) | (46 | )% | |||||||||
| Total Bookings By Product Stream | $ | 1,444,906 | $ | 1,908,108 | $ | (463,202 | ) | (24 | )% | ||||||
Note - For complete information, including footnote disclosures, please refer to the Company's Form 10-Q filing with the SEC.
| JOY GLOBAL INC. | ||||||||||||||||
| SUPPLEMENTAL FINANCIAL DATA | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Amounts as of: | ||||||||||||||||
| May 1, | January 30, | October 31, | August 1, | |||||||||||||
| 2015 | 2015 | 2014 | 2014 | |||||||||||||
| Backlog By Segment: | ||||||||||||||||
| Underground | $ | 765,580 | $ | 752,037 | $ | 729,791 | $ | 938,205 | ||||||||
| Surface | 514,497 | 593,624 | 629,861 | 791,983 | ||||||||||||
| Eliminations | (16,184 | ) | (16,001 | ) | (26,269 | ) | (45,687 | ) | ||||||||
| Total Backlog By Segment | $ | 1,263,893 | $ | 1,329,660 | $ | 1,333,383 | $ | 1,684,501 | ||||||||
| Backlog By Product Stream: | ||||||||||||||||
| Service | $ | 568,372 | $ | 568,419 | $ | 559,454 | $ | 654,879 | ||||||||
| Original Equipment | 695,521 | 761,241 | 773,929 | 1,029,622 | ||||||||||||
| Total Backlog By Product Stream | $ | 1,263,893 | $ | 1,329,660 | $ | 1,333,383 | $ | 1,684,501 | ||||||||
Note - For complete information, including footnote disclosures, please refer to the Company's Form 10-Q filing with the SEC.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150604005177/en/
Joy Global Inc.
James M. Sullivan
Executive Vice President and
Chief Financial Officer
+1 414-319-8509
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