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Joy Global Inc. Announces Third Quarter Fiscal 2012 Operating Results

Joy Global Inc. (NYSE: JOY), a worldwide leader in high-productivity mining solutions, today reported third quarter 2012 results. Third quarter bookings were $1.1 billion, compared to $1.4 billion in the third quarter of last year, a decrease of 25 percent. Net sales increased 22 percent to $1.4 billion compared to the same period last year. Operating income was $299 million, or 22 percent of sales, in the third quarter of 2012, compared to operating income of $236 million, or 21 percent of sales, in the third quarter of 2011. Income from continuing operations was $194 million or $1.82 per fully diluted share for the third quarter compared to income from continuing operations of $172 million, or $1.61 per fully diluted share in the third quarter of 2011.

Third Quarter Operating Results

“Our results this quarter continue to show strong execution, but against a market backdrop of adjustment to lower demand for U.S. coal and continued slowing of the Chinese economy”, said Mike Sutherlin, President and Chief Executive Officer. “The original equipment order rate is impacted by a project pipeline that has slowed but still has several new projects that should reach equipment selection in the near term. Reduced aftermarket orders in the U.S. have been mostly offset by increased orders from international markets. Our operating focus continues to deliver results, with profit leverage of 25 percent on a 22 percent increase in revenues, and this operating efficiency will serve us well as we address market uncertainty and volatility. Although there is evidence that both the U.S. and China markets have bottomed, we expect a recovery to be sluggish. We are therefore beginning the implementation of our prior downside planning by adjusting our operations to match current market conditions so that we can deliver performance over a range of possible outcomes.”
     
Bookings - (in millions)
  Quarter Ended
July 27 July 29 %
  2012     2011   Change
 
Underground Mining Machinery $ 553.8 $ 742.9 (25.5 )%
Surface Mining Equipment 450.1 732.1 (38.5 )%
Eliminations   (75.9 )   (51.3 ) NA
Legacy Business 928.0 1,423.7 (34.8 )%
 
LeTourneau 91.7 23.6 NA
IMM   64.6     -   NA
 
Total Bookings $ 1,084.3   $ 1,447.3   (25.1 )%
 

Bookings decreased 25 percent to $1.1 billion in the third quarter of fiscal 2012, with year over year quarterly order declines in our legacy business partially offset by the $68 million of incremental bookings from LeTourneau and $65 million of bookings from IMM. Our current quarter includes the full results of both these acquisitions, while the third quarter of last year only includes five weeks of LeTourneau activity. Orders for the legacy underground and surface businesses decreased 35 percent in total compared to the third quarter of last year. Aftermarket orders declined 4 percent, and original equipment orders were down 62 percent over last year’s third quarter. The stronger U.S. dollar reduced bookings by $62 million during the quarter.

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