Mining equipment manufacturer Joy Global, Inc. (JOYG) reported Wednesday a decline in profit for the third quarter, mainly hurt by lower underground equipment sales as well as sales from United States. Quarterly earnings per share, however, topped the market projections, while top line missed their view. The Milwaukee, Wisconsin-based company lifted its fiscal 2010 earnings forecast.
Net income for the third quarter fell to $118.50 million or $1.13 per share from prior year's $124.34 million or $1.21 per share. On average, 20 analysts polled by Thomson Reuters expected earnings of $1.02 per share for the quarter. Analysts' estimate typically excludes one-time items.
Net sales for the quarter declined to $850 million from $956.39 million last year due to lower original equipment sales in the underground equipment business. Fifteen analysts estimated revenues of $878.20 million for the quarter.
Sales from underground mining machinery was $510.82 million, lower than prior year's $624.51 million, while Surface Mining Equipment sales grew to $372.94 million from $366.21 million a year ago.
Geographically, sales from United States plunged to $373.12 million from $511.52 million a year ago, while sales from Rest of World increased to $476.88 million from last year's $444.87 million.
In the quarter, operating income dropped to $172 million from $195 million a year ago, while operating margin remained at the prior year level of 20%.
New orders increased 51% to $973 million from $644 million in 2009. Original equipment orders more than doubled, while aftermarket orders increased 20%. Backlog at the end of the quarter increased to $1.8 billion from $1.5 billion as of October 30, 2009 on strong bookings reported for both divisions.
Commenting on the results, Mike Sutherlin, president and chief executive officer, said, "This was another quarter of very good overall performance for us, and it reflects both the strength of our markets and our progress in making this a more efficient business. Operating profitability continues above 20%, despite lower volumes, as we benefit from our efforts on cost control and process improvements."
In its preceding second quarter, Joy Global's net income was $120.44 million or $1.15 per share, on net sales of $896.22 million.
Among Joy Global's peers, Bucyrus International, Inc. (BUCY) reported a decline in second quarter profit, primarily on higher costs and expenses related to Terex Mining acquisition that more than offset a rise in sales.
Caterpillar Inc. (CAT) reported over 90% growth in second-quarter profit, helped by higher demand and sales volume and favorable price realization. The Peoria, Illinois-based company's total sales and revenues grew 31% on strong growth in developing economies.
Further, Joy Global lifted its fiscal 2010 forecast, and now expects earnings per share to be between $4.10 and $4.15, higher than its prior guidance of $3.85 to $4.00 per share. Twenty-two analysts anticipate full-year earnings per share of $4.00, with estimates ranging between $3.90 and $4.16 per share.
For fiscal 2010, the company currently expects revenues between $3.35 billion and $3.40 billion, which narrows the guidance to the upper end of the prior range of $3.30 billion to $3.40 billion. Analysts project fiscal 2010 revenues of $3.41 billion.
Sutherlin added, "The market fundamentals continue to improve as customers announce new mine expansions and increase their capital budgets. As a result of these factors, this quarter positions us well to finish the year strongly and to capitalize on opportunities for 2011."
JOYG closed Tuesday's regular trading session at $56.72, up $0.82, on a volume of 1.7 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.