Joy Global Misses Q1 Expectations

reported weaker-than-expected earnings for the fiscal first quarter and lowered its forecast for the year. The Milwaukee, Wisconsin-based company posted quarterly net income of $44.9 million, or $0.46 per share, compared to $71.3 million, or $0.71 per share, in the year-earlier period. Excluding items, the company's adjusted earnings slipped to $0.54 per share from $0.80 per share. Its net sales fell 9.5 percent year-over-year to $792.2 million. However, analysts were expecting earnings of $0.61 per share on revenue of $798.73 million. The average estimate among 21 Estimize users was for earnings of $0.70 per share and revenue of $830.50 million. Net sales for underground mining machinery fell 4 percent, while sales for surface mining equipment dropped 17 percent. Bookings declined 31 percent year-over-year to $635 million in the quarter. Service bookings slipped 16 percent to $537 million. Original equipment orders dropped 66 percent, while service orders shrank 16 percent year-over-year. Operating income for the third quarter declined to $73 million, versus $119 million in the year-ago quarter. During the third quarter, Joy Global did not repurchase any shares of its common stock. "Our financial results for the third quarter reflect an end market environment that is one of the most challenging seen in decades," said Ted Doheny, President and Chief Executive Officer. "The further step down in commodity prices resulted in projects getting delayed and a lock down on cash from our customers which impacted our service business. We are accelerating our facility optimization plans and taking additional cost reduction actions to align with lower market demand." Joy Global now projects 2015 earnings of $1.80 per share on revenue of $3.1 billion. Joy Global shares gained 0.14 percent to close at $22.13 yesterday.