Joy Global Inc. (NYSE: JOY), a worldwide leader in high-productivity mining solutions, today reported third quarter fiscal 2013 results.
Overview of the Quarter
- Bookings totaled $695 million, down 36 percent from a year ago, and down 28 percent excluding foreign currency impacts.
- Net sales were $1.3 billion compared to $1.4 billion a year ago.
- Operating income was 20.8 percent of sales compared to 21.6 percent of sales in the third quarter of 2012.
- Earnings per fully diluted share was $1.71 in the current quarter, compared to $1.82 in 2012. Excluding unusual items, earnings per fully diluted share was $1.70 in the current quarter, compared to $1.87 in 2012.
- Cash provided by continuing operations was $350 million in the third quarter compared to $157 million a year ago.
- The Board of Directors authorized the company to repurchase up to $1.0 billion in shares of common stock over the next 36 months. Under the program, the company may repurchase shares in the open market in accordance with applicable rules and regulations of the Securities and Exchange Commission.
Third Quarter Operating Results
“Once again, the quarter’s results demonstrate strong operational efficiencies and weak market conditions,” said Mike Sutherlin, President and Chief Executive Officer. “The market has become even more challenging, with declines in order rates for both original equipment and aftermarket. The supply surplus that was centered in the U.S. coal market last year has migrated to the international markets, and they are now going through similar aftermarket corrections to that in the U.S. Based on the U.S. experience, we expect this to create headwinds for most of the next year. Although original equipment orders have always been lumpy, the uncertainty around their timing has increased. A select number of projects are continuing to move forward, but at a measured pace so they do not get ahead of the market. As a result, we expect the order rate to take a step down from our previous outlook until both demand and commodity pricing improve, but at the same time we expect the run rate to be above that of the current quarter.”