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The Joy of Global Mining

The results were in some ways better than anticipated. Quarterly revenue growth was actually slightly above the same quarter last year. Net sales in the second quarter were $1.4 billion compared to $1.5 billion for the same period last year.

Operating income was $279 million, or 20.5% of sales in the second quarter of 2013, compared to operating income of $333 million, or 21.6% of sales in the second quarter of 2012. JOY has maintained an impressive trailing 12-month (TTM) operating margin of almost 22%.

Income from continuing operations was $182 million, or $1.69 per fully diluted share, including restructuring charges, compared to $218 million, or $2.04 per fully diluted share, in 2012. Year-over-year quarterly earnings growth was just about break-even, which took skillful cost planning and management.

Second-quarter bookings decreased 8% to $1.1 billion in fiscal 2013 compared to the second quarter of last year, but increased 10% sequentially over the first quarter of this year. This reflects JOY's reputation to be where and near the action is and close by to its customer's projects.

The chart below, which spans five years, gives us a better illustration of how the company has kept its head above water in a time of worldwide contraction, mineral surpluses and one economic crisis after another.

JOY Chart JOY data by YCharts

JOY's income from continuing operations (TTM) is a ray of optimism that was reflected in the conference call last Thursday. "This second quarter again reflected strong execution against continued market headwinds," said Mike Sutherlin, president and chief executive.

He added, "Revenue were down 12%, in line with expectations, and operating profit margin remained strong at nearly 21% due to operational efficiencies and cost reduction efforts. Our original equipment order stream included a longwall system for U.S. coal and, as expected, our aftermarket orders improved sequentially.

"Even though the overall order rate continues to reflect soft market conditions, the base order rate, before major projects, has been consistent over the last five quarters. We see this as providing market stability until the current commodity supply surplus is worked off."

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