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Joy Global Inc. Announces Second Quarter Fiscal 2012 Operating Results

Joy Global Inc. (NYSE: JOY), a worldwide leader in high-productivity mining solutions, today reported second quarter fiscal 2012 results. Second quarter bookings were $1.2 billion, compared to $1.5 billion in the second quarter of last year, a decrease of 19 percent. Net sales increased 45 percent to $1.5 billion compared to the same period last year. Operating income was $333 million in the second quarter of 2012, compared to operating income of $234 million in the second quarter of fiscal 2011, and was 22 percent of sales in both years. Income from continuing operations was $218 million or $2.04 per fully diluted share for the second quarter compared to income from continuing operations of $162 million, or $1.52 per fully diluted share in the second quarter of 2011.

Second Quarter Operating Results

“Our second quarter reflects both excellence in our execution and concerns over slowing in our markets,” said Mike Sutherlin, President and Chief Executive Officer. “Our efforts on cycle time reduction allowed us to increase shipments this quarter in our core Joy underground and P&H surface businesses by 24 percent over last year, and our focus on operating leverage delivered 24 percent operating margins in these core businesses. We are very pleased with the performance from our acquired LeTourneau and International Mining Machinery businesses, as they collectively delivered operating margins above 20 percent before first-year excess purchase accounting charges. With the U.S. market correcting quickly, and the international markets showing signs of near term slowing, we are turning our focus to trimming costs. The current order rate is affected by both project timing as well as fundamentals, and we believe there is sound basis for demand upside. However, we have been served well in the past by starting early to prepare for a range of outcomes, and this currently includes our expectation that near term order rates will moderate and revenues could flatten for a period compared to our first half run rate.”

       
Bookings - (in millions)
      Quarter Ended
April 27 April 29 %
2012 2011 Change
 
Underground Mining Machinery $ 564.8 $ 905.2 -37.6 %
Surface Mining Equipment 533.9 670.4 -20.4 %
Eliminations   (93.2 )   (50.8 )

NA

Core Business 1,005.5 1,524.8 -34.1 %
 
LeTourneau 128.4 - NA
IMM   97.5     -   NA
 
Total Bookings $ 1,231.4   $ 1,524.8   -19.2 %
 

Bookings decreased 19 percent to $1.2 billion in the second quarter of fiscal 2012, with year over year quarterly order declines in our core business partially offset by the inclusion of $128.4 million and $97.5 million of bookings from LeTourneau Technologies Inc. (“LeTourneau”) and International Mining Machinery (“IMM”), respectively. Orders for the core underground and surface businesses decreased 34 percent in total compared to the record second quarter of last year. Aftermarket orders decreased 9 percent, and original equipment orders were down 59 percent over last year’s second quarter. The stronger U.S. dollar reduced bookings by $17 million during the quarter.

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